Advanced Digital Information Corp. (Nasdaq: ADIC), which makes computer storage products, said on Thursday it approved a 2-for-1 stock split. The company also topped estimates in its fiscal first quarter.
After the closing bell Wednesday, Advanced Digital reported first quarter earnings of $7.2 million, or 27 cents a share, on sales of $63.9 million. The earnings easily topped First Call consensus estimates of 23 cents a share.
The results were also well ahead of earnings of $3.1 million, or 15 cents a share, reported in the first quarter a year ago.
Bear Stearns also upped Advanced Digital's price target to $75-$80 from $65-$70.
As for the stock split the company said shareholders on March 1 will receive one additional share for every share they own. The shares will be payable on March 13. Advanced Digital will have about 51 million shares outstanding after the split takes effect.
Advanced Digital provides automated tape libraries, software and storage area networking (SAN) products.
Company partners include Dell (Nasdaq: DELL), Fujitsu Siemens, IBM (NYSE: IBM), Exabyte (Nasdaq: EXBT) and Unisys (NYSE: UIS). Similar companies include Quantum DSS (NYSE: DSS), which announced layoffs on Wednesday, and Seagate (NYSE: SEG).
Advanced Digital also holds 2.6 million shares of Crossroads Systems, Inc. (Nasdaq: CRDS). Based on the Jan. 31, price of $72.75 per share, the Crossroads stake had a gross value of $189.8 million. That investment has grown considerably in recent days --Crossroads closed at 156 on Wednesday.