The Register® — Biting the hand that feeds IT

StorageTek turns nifty Q3 profit

On lower sales. Good show

Free whitepaper – Blade learning lab and technical community

A streamlined StorageTek managed to turn a nice profit in its third quarter despite flat revenue.

The tape specialist pulled in $527m during the period, which is just slightly higher than the $520m in revenue posted in the same quarter last year. StorageTek's net income, however, rose significantly to $43m in the third quarter versus $31m one year ago. The company enjoyed better margins and lower research and development costs in its most recent quarter.

"We are pleased to deliver consistent, solid earnings improvement even in a rather modest economic environment," said StorageTek CEO Patrick Martin.

One of the biggest negatives for StorageTek in the third quarter was a drop in product revenue. Its core hardware and software business saw revenue drop from $312m last year to $299m. Services, however, did increase from $208m to $227m in this year's third quarter.

StorageTek generated $121m in cash from operations during the period, leaving it with a healthy $1.1bn cash and investment balance. ®

Related stories

StorageTek seizes Storability
FalconStor wants to WORM your disk arrays
Rumours of Tape's death exaggerated

Free whitepaper – PowerEdge M1000e, M600 and M605 spec sheet

Don’t Miss

DustbinDirty, dirty PCs: The X-rated picture guide

Ventblockers Horror beyond human imagination

SC09Top 500 supers - rise of the Linux quad-cores

SC09 Jaguar munches Roadrunner

Ubuntu teaser Early adopters bloodied by Ubuntu's Karmic Koala

Smooth Windows upgrade it ain't

Sign up, sign up for The Register IT security newsletter

Narrowcasting for the email classes