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Evaluator Group Validates DataCore's SanSymphony Platform

DataCore Software, a leading provider of enterprise-class, open-storage networking software, announced recently that the independent firm, Evaluator Group, completed a comprehensive analysis of DataCore's record-breaking performance numbers for its flagship SANsymphony storage platform. The conclusion: DataCore's "...performance numbers and the cost of the solution set a bar for other storage solutions."

The Evaluator Group study was the outgrowth of extensive performance testing with SANsymphony in August and September of 2002. Two modest, off-the-shelf, dual Intel Xeon processor-based servers running Microsoft Windows 2000 Server and under SANsymphony's control produced results more than double the highest published numbers for conventional storage subsystems, and at a fraction of previous prices. Prior to this announcement, only custom-built, proprietary disk arrays were considered capable of handling such high-speed and high-throughput storage requirements. In addition to the performance and inexpensiveness of the solution, Evaluator Group praised the "extensibility" of the solution, which allowed for the continuous refresh of hardware and software components without fundamental changes to the entire storage infrastructure.

"Though most people know that Intel-based systems are excellent computing platforms and that almost 9 out of 10 servers are Intel-based according to industry analysts, I/O performance is an often understated but important factor in performance," explained Tom Macdonald, general manager of the Advanced Components Division that creates Intel's Enterprise Server Chipsets. "These performance-testing results demonstrate the potential for DataCore's software to harness the power of the Intel Architecture to deliver I/O that can lead to a greater server and storage solution experience."

Charles Stevens, corporate vice president, Enterprise Storage Division, Microsoft Corp elaborated, "DataCore is furthering an industry trend where customized, specialty devices give way to standard components as off-the-shelf building blocks get faster and lower in cost. DataCore's product success is a great example of innovative technology built on Microsoft's Windows 2000 Server platform, which delivers considerable cost and performance benefits to enterprise storage customers."

Randy Kerns, partner at the Colorado-based analyst firm Evaluator Group, added, "The overall conclusion in analyzing the results of this performance test has to be that the symmetrical pooling solution provided by DataCore SANsymphony can deliver extraordinary performance. That this performance is delivered with commodity storage elements and off-the-shelf servers running the storage virtualization and management software is all the more compelling. Scaling of both performance and capacity is redefined with this type of solution where no longer is the single box the unit of increment that must be changed or replaced. Scaling is accomplished instead by adding (and thereby distributing) the storage and control functions across additional commodity components."

Evaluator Group's report titled "Performance Analysis of DataCore's SANsymphony Symmetrical Pooling Solution" may be downloaded from DataCore's Website: www. datacore.com/forms/form--request.asp?id=evalgroup--perf".

The complete spectrum of IOPs, throughput and configuration parameters for the SANsymphony performance profile is also posted for public review at DataCore's Web site.

About DataCore Software

DataCore Software Corporation's award-winning software automates and consolidates storage management for enterprise customers worldwide, significantly reducing their costs and increasing the return on investment from information technology assets. The company's SANsymphony software sets the standard for open storage networking platforms, supporting all major brands of disk arrays and operating systems. It is available and supported through major OEMs, system integrators and resellers. DataCore is privately held with corporate headquarters in Ft. Lauderdale, Florida. For international office locations and more information, call 877-780-5111 or visit www.datacore.com.

Contact: Jan Jahosky of DataCore Software Corporation, 407-331-4699, jan.jahosky@datacore.com.

Vixel Corporation Announces Third Quarter 2002 Results

Vixel Corporation, a leading provider of storage networking technologies, recently announced financial results for its third fiscal quarter ended September 29, 2002.

Revenue for the third quarter of 2002 was $5.0 million, compared with $4.8 million in the second quarter of 2002 and $4.6 million in the third quarter of 2001. Gross margin was 49.3% of total revenue in the third quarter of 2002, compared with 48.0% in the second quarter of 2002 and 25.4% in the third quarter of 2001.

Net loss for the third quarter of 2002 was $2.6 million, or $0.11 per share, compared with $5.6 million, or $0.24 per share for the third quarter of 2001. Sequentially, this compares with a second quarter 2002 adjusted net loss of $2.9 million, or $0.12 per share, excluding a $4.5 million gain on the sale of the company's SAN InSite software assets and operations and $1.8 million of restructuring expenses recorded in the second quarter of 2002. The second quarter net loss, including the gain on sale and restructuring expenses, was $0.2 million, or $0.01 per share.

For the first nine months of 2002, total revenue was $14.5 million, compared with revenue of $17.2 million for the first nine months of 2001. Included in 2001 revenue is approximately $5.0 million of component revenue. The company transitioned out of the component transceiver business by the end of the second quarter of 2001. Adjusted net loss for the first nine months of 2002, excluding the gain on sale of SAN InSite and restructuring expenses, was $10.0 million, or $0.42 per share, compared with a net loss of $17.5 million, or $0.75 per share, for the same period in 2001. For the nine-month period of 2002 the net loss including the gain on sale and restructuring expenses was $7.2 million, or $0.30 per share.

"The events of this past quarter reinforce the clear emergence of the embedded storage switch market and Vixel's position of leadership in this new market," said Jim McCluney, president and CEO of Vixel Corporation. "In spite of a very difficult IT spending environment that has slowed the adoption and integration of new technologies by storage OEMs, Vixel's strategy to leverage its time to market advantage with InSpeed is succeeding. This was demonstrated by several recent key account wins and events. Hewlett Packard began shipping InSpeed in July, NEC has agreed to OEM InSpeed and will begin shipping this October, and two additional European partners have adopted InSpeed based solutions. But perhaps even more importantly, with the new account engagements and increased demand for InSpeed products that occurred this quarter, virtually every storage OEM of consequence is now either evaluating InSpeed technology or has product in formal test."

Kurt Adams, CFO of Vixel Corporation, added, "Our greater than 50% sequential quarterly growth in switch product revenue in the third quarter demonstrates that we have successfully transitioned the company away from its legacy business lines and are poised to take advantage of the new embedded storage switch market. Our results this quarter reflect the progress we are making in redirecting our business model towards higher margin products and in penetrating the market with our new InSpeed based products. We remain focused on managing costs, growing our customer base and driving toward profitability in 2003."

Cash and investments as of September 29, 2002 totaled $19.3 million. The company believes these balances are sufficient to fund operations for at least the next 12 to 18 months as the company executes its business strategies in 2002 and beyond.

Imation Profit Soars On Data Boom

Imation Corp reported an 83 percent increase in third-quarter earnings on strong demand for removable data storage tape, and said fourth-quarter profits are expected to be well above Wall Street expectations.

Imation earned $18.5 million, or 52 cents a share, in the quarter ended September 30, up from $10.1 million, or 29 cents a share, a year earlier.

Revenues fell slightly to $263.8 million, from $265.6 million.

Earnings from continuing operations came to 46 cents a share, beating by a penny the consensus estimate of analysts surveyed by Thomson First Call. Earnings from continuing operations in the third quarter of 2001 totaled 26 cents a share.

Bill Monahan, chairman and chief executive officer, said the results show Imation is on the right track in focusing on its removable data storage business.

"The need for back-up, archiving, disaster recovery and record retention remains a top priority for organizations globally," Monahan said. "The removable media industry is a cornerstone in how we protect, manage, share and use information important to us both in business and at home."

Monahan also said fourth-quarter earnings are expected to range from 47 cents to 52 cents a share. Analysts surveyed by Thomson First Call had been expecting earnings of 39 cents for the quarter.

For the first nine months, Imation earned $56.8 million, or $1.60 a share, more than doubled from $24.9 million, or 71 cents a share, a year earlier. Revenues fell to $795.8 million, from $819.5 million.

This year's nine-month results included a one-time pretax gain of $8.4 million, or 16 cents a share, mainly from settlement of a lawsuit.

The 2001 nine-month results include results of a color proofing and color software business which was sold to Kodak Polychrome Graphics last Dec. 31, and costs related to abandoned computer software.

Shares of Imation fell $1.07, or 2.9 percent, to close Tuesday at $35.73 on the New York Stock Exchange.