Storage array controller manufacturer Adaptec reported a $4-million-plus loss in the second quarter of fiscal 2010, ended Oct. 2 - a slight improvement from the loss it reported during the same period one year ago.
"Although customer engagements with our new products continue to grow, our new product revenue is not enough to offset the decline in revenues from our legacy products," CEO Sundi Sundaresh said in a statement.
Adaptec brought in $18.4 million in revenue during the quarter - a drop from $31.7 million during the same period last year. The company reported a loss of $4.1 million, compared to a net income of $3.3 million one year ago.
Adaptec VP and CFO Mary Dotz said the company expected the revenue decline - associated with decreases in legacy OEM revenues - to continue through the next quarter.
"Our channel customers represented 61 percent of net revenues for the second quarter including our top distributors Ingram Micro at 13 percent and Bell Micro at 11 percent," she said in a conference call. "The remaining 39 percent of net revenues came from our OEM customers with IBM representing 22 percent of net revenues."
During the quarter, Adaptec introduces its new Data Conditioning Platform, which Sundaresh said would position the company for future growth. Its newest family of products based on the new platform was called MaxIQ. It was launched in September.
The roll-out started with MaxIQ SSD Cache Performance Solution for building and managing high-performance hybrid arrays that combine solid state and disk drives. Adaptec says such arrays can achieve I/O performance up to five times faster than disk-only arrays, as well as substantial capital and operating expense savings.
Overall, Adaptec says the new platform allows for "data optimization" functionality in its products, reducing the amount of required server and storage hardware in data centers. Other products based on the platform include the company's Zero-Maintenance Cache Protection and Intelligent Power Management - a solution aimed at reducing storage power and cooling requirements.