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7/22/2004

StorageTek earnings up

The Daily Times-Call

LOUISVILLE — Storage Technology Corp. announced earnings of $35.6 million on revenue of $516.6 million during the second quarter, compared to earnings of $30.1 million on revenue of $527.3 million in the second quarter of 2003.
For the six months ended June 25, 2004, the company earned $59 million on revenue of $584 million, compared to earnings of $46.6 million on revenue of $594.4 million during the same time period in 2003.
The company, which makes computer storage devices, saw its storage services revenue grow 9 percent for the first six months of 2004 compared to the same period last year.
StorageTek also announced this quarter it authorized a $500 million stock repurchase program. The share repurchase is intended to reduce dilution from employee stock plans and balance the cash returned to shareholders through share repurchases with the cash reinvested in the business for profitable future growth, the company said in its earnings announcement.
Cash flow from operations was $73 million, bringing the company’s cash and investment balance to $1.1 billion.
“We will continue to invest in those areas where the profitable growth of our business is the top priority,” said StorageTek’s CFO Robert Kocol. “By the same token, we will drive the various operational disciplines that impact our business model and take the necessary steps to achieve consistent and improving results.”
The company’s stock closed at $26.13 per share Tuesday, up 20 cents from its previous close.