Iomega managed to top Street estimates in its first quarter Thursday but total sales fell 11 percent from the year-ago quarter.
The disk-drive manufacturer posted a profit of $51.8 million, or 19 cents a share, on sales of $344.9 million.
Excluding a $20.1 million gain attributable to a decrease in the valuation allowance for net deferred tax assets, Iomega (NYSE: IOM) earned $31.7 million, or 12 cents a share in the quarter.
First Call consensus expected it to earn 4 cents a share in the quarter.
Ahead of the earnings report, Iomega shares closed unchanged at 4.
The $344.9 million in sales marks an 11 percent decline from the year-ago quarter when it posted a profit of around $600,000 on sales of $386.2 million.
While profit margins for its popular Zip drives helped bolster the bottom line, company officials weren't pleased with the top-line descent.
"While I am pleased with our bottom-line results and resolve to maintain our profit focus, I am disappointed with our revenue decline,'' said CEO Bruce Albertson in a prepared release. "I think that while there are still challenges ahead, there are significant opportunities for growth."
First Call consensus expects Iomega to earn 24 cents a share in the fiscal year.
Its shares have bounced between $3 and $7 a share for the past year.
One of the two analysts still following the stock rates it a "buy" while the other calls it a "hold."
Among other technology companies reporting earnings Thursday:
Including a $329 million gain from the sale of its microelectronics group, it earned $189.4 million, or $2.46 a share.
Analysts expected it to lose 3 cents a share, excluding those gains, in the quarter.
The $60.7 million in sales was slightly less than the year-ago quarter when it earned $4.2 million, or 6 cents a share, on sales of $60.9 million.
PairGain shares closed up 2 5/8, or 14 percent, to 20 3/4 ahead of the quarterly report.
In February, PairGain announced that it would be acquired by ADC Telecommunications (Nasdaq: ADCT). The merger is expected to close during ADC's third fiscal quarter ending July 31.
First Call consensus expects PairGain to earn 4 cents a share in the fiscal year.
Its shares closed off 1 1/8 to 48 1/16 ahead of the earnings report.
First Call consensus pegged RSA for a profit of 19 cents a share.
The $63.3 million in sales marks a 30 percent jump from the year-ago quarter when it made $5.1 million, or 12 cents a share, on sales of $48.7 million.
Including the operations of RSA Capital, the company raked in $24.6 million, or 56 cents a share, compared to $41 million, or 97 cents a share, in the year earlier period.
"We continued the positive momentum we built throughout 1999 and we're off to a strong start in 2000," said CEO Art Coviello in a prepared release.>