Quantum's DLT & Storage Systems Group (NYSE: DSS) expects to meet analyst estimates in the second quarter and fall short of them in the third.
After market close Friday, the maker of tape storage drives said it sees fiscal second quarter earnings of 34 cents per share, not counting acquisition-related charges. That profit figure is in line with First Call's consensus estimate. Preliminary results indicate second quarter revenue of $357 million, Quantum DLT.
But Quantum confirmed shareholder fears about the fiscal third quarter ending December. Y2K effects on customer spending and lower demand from one original equipment manufacturer will keep third quarter earnings and revenues flat, Quantum DLT said. First Call's survey of five analysts had forecast earnings would rise to 41 cents per share for the December quarter.
Shares of Quantum DLT fell 1 7/8 to 11 1/2 on volume of more than 4.3 million shares during Friday's regular trading after one of the company's suppliers, Hi/fn, said it saw a sudden drop in demand from Quantum for the October-December period.
Quantum expects "normal growth rates" early next year when Y2K projects are completed.
Full earnings results will be announced next Thursday, the company said.>