Sales and Earnings Hit New Highs
Overland Data, Inc. (Nasdaq: OVRL) today reported revenues and net income for the second quarter and first half of fiscal 2002 that exceeded analyst estimates. Revenues for the second quarter of fiscal 2002 were a record $45.6 million, compared to $43.6 million in the second quarter of fiscal 2001. Net income for the second quarter of fiscal 2002 was $2.0 million, or $0.18 per fully diluted share, compared to $1.8 million, or $0.17 per fully diluted share, in the second quarter of fiscal 2001.
Revenues for the six-month period ended December 31, 2001 were $85.6 million compared to revenues of $81.3 million during the same period of the prior fiscal year. Net income for the first half of fiscal 2002 amounted to $3.0 million, or $0.28 per fully diluted share, compared to net income of $3.2 million, or $0.29 per fully diluted share, for the corresponding period in fiscal 2001.
Christopher Calisi, president and CEO of Overland Data, said: “In this difficult economic environment we are extremely pleased to report record financial results that exceed both our expectations for the quarter as well as the results we achieved during the more robust environment of the prior year. Our second-quarter results reflect the payoff of our focus on the mid-range tape automation market and widespread acceptance and demand for our NeoTM tape library systems, which are strategically positioned for a constrained economy. We introduced Neo in March 2001 and it has proved to be the most successful product launch in our company’s history. In the space of three quarters, Neo sales have gone from zero to 43 percent of total revenues. Neo is considered by many to be the ‘best-of-breed’ in the mid-range tape storage segment based on its true modular field scalability and highly fault-tolerant design.”
Mr. Calisi continued, “Late last fiscal year, we shed an under-performing line of business, restructured our company and reduced operating expenses. We then implemented a plan to reinvest some of those savings in a 75 percent expansion of our branded sales force designed to capitalise on the traction of the Neo series. We have made significant progress in this effort and the results are beginning to show. In the second quarter of fiscal 2002, sales of our branded products, excluding discontinued Tecmar products, grew by 22 percent compared to the prior year quarter. Sales to our OEM customers grew three percent during the comparable period. We expect both our domestic and international channel sales to continue to grow in coming quarters.
“Earnings are also being strengthened by license agreements for VR2, our proprietary data encoding technology. In December we announced an agreement with Quantum Corporation, bringing the total number of licensees to four. We are working closely with Quantum on its next generation tape drive development and will be receiving engineering service revenues until shipping commences. The other licensees have either begun shipping VR2-enabled drives or intend to begin shipping in the near future. Our VR2 portfolio has the potential to significantly improve our earnings in fiscal 2003 and beyond.
“As we look into the third quarter of fiscal 2002, we expect that our revenues, although seasonally down from the second quarter, will grow 15-20 percent over the prior year’s quarter. We expect earnings per share to double over the prior year quarter, which included a non-recurring gain from the sale of a product line. Excluding that gain, we expect earnings per share to grow by over 400 percent. We believe that the mid-range segment will continue to experience greater growth than the tape automation sector as a whole. Overland Data is well positioned to play a major role in the protection of critical corporate data, assuring business continuity,” Mr. Calisi concluded.
Overland Data is a global supplier of innovative data storage and storage automation solutions for computer networks. The Company's reputation for delivering high availability products sets the standard for intelligent automated storage and scalability. Overland is the market leader in the mid-range tape automation market and sells its products worldwide through leading OEMs, commercial distributors, storage integrators and value-added resellers.
Webcast: A live audio Webcast of Overland Data's management conference call discussing second quarter fiscal year 2002 results and outlook will be held beginning at 10:30 a.m. EST, January 17, 2002, and will be posted at www.overlanddata.com. Please provide adequate time to log on. Following the broadcast, the conference call will be archived for future access on Overland's website.
Overland Data (Europe) Ltd.
+44 (0) 1189 898022
Sian Ford/Alex Murphy
Strategic Alliance International
+44 (0) 1494 434434
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