At least one analyst notes the slight droop in StorageTek's disk product revenue. Kaushik Roy of Susquehanna Financial Group, says StorageTek's disk earnings, which he says represent sales of midrange products, were down roughly 17 percent -- from $53 million last quarter to $44.2 million this quarter. That compares unfavorably with EMC Corp. (NYSE: EMC), which reported increased sales of its midrange Clariion products in its recent earnings (see EMC Earnings Up).
On the analyst call, StorageTek execs also acknowledged disk revenue growth for the year could come in at around 15 percent, compared with 17 percent for the year in 2003.
The disk droop hints that while StorageTek has robust cash flow, it may need to eventually take a peek at the rate of its product growth, particularly as tape products are often viewed as "mature" technology eventually earmarked for replacement by disk.
That said, the company had little bad news, aside from ongoing slowness in customer spending: Indeed, a tax rate change has caused management to upgrade total yearly revenue guidance, from $165-$175 million for the year, to $178-$190 million.
Mary Jander, Site Editor, Byte and Switch
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