Adaptec beats 3Q estimates, will restate 2Q

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Adaptec, Inc. (Nasdaq: ADPT) said Thursday net income for the third quarter of fiscal 2000 was 52 cents a share, beating First Call's estimate of 48 cents a share, and announced plans to restate its second quarter results.

Shares were up 3/16 to 59 7/16 Thursday morning. The stock has been on a tear, having risen from a low of 19 over the past year.

Revenue was $211 million, up from $160 million in last year's third quarter, and up from $194 million in the previous quarter. Pro forma net income of 52 cents a share, or $58 million, was excluding goodwill amortization, acquisition-related charges and restructuring and other charges. It also compared favorably to earnings of 27 cents a share in last year's third quarter.

Adaptec also said it plans to restate results for its second quarter, to reflect the non-operating gain of $10.9 million associated with its sale of some assets to JNI Corporation in exchange for an ownership interest in JNI As a result of this revision, net income for the second quarter of fiscal 2000 will increase $6.6 million, net of income taxes, and diluted earnings per share will increase 6 cents a share.

The company said fundamentals were good, and this quarter's business deals have positioned it for better business ahead.

"We have a healthy sense of urgency surrounding the integration of DPT with our current RAID business. We are also moving swiftly to ramp our Fibre Channel business," Bob Stephens, president and chief executive officer of Adaptec, said in a company release. Adaptec bought Distributed Processing Technology (DPT) for $235 million in cash and stock in November.

Adaptec also entered into an exclusive agreement with Agilent (NYSE: A) this week to bring Fibre Channel technology to the PC server market. Including the DPT position, this puts the company in a unique position to offer storage area networks -- SANs -- for NT environments, the company said. The terms of its four-year partnership with Agilent include the co-development and marketing of Fibre Channel products to optimize performance and compatibility.

In connection with its partnership with Agilent, Adaptec issued Agilent a warrant to purchase 1.2 million shares of Adaptec common stock at a price of $62.25 per share.

Adaptec also inked a deal with RealNetworks during the quarter, to provide CD recording functionality for RealJukebox.