Exhibit 99.1
[CNT LOGO]
NEWS RELEASE
FOR IMMEDIATE RELEASE
CNT ANNOUNCES PRELIMINARY FOURTH QUARTER RESULTS
MINNEAPOLIS, FEBRUARY 11, 2002 - CNT(R) (Nasdaq: CMNT) today announced unaudited
preliminary fourth quarter results for the period ending January 31, 2002, which
included record revenues. Revenue is expected to be approximately $60.7 million
for the three months ended January 31, 2002, compared to $47.0 million for the
three months ended January 31, 2001, an increase of 29%. Revenues for the three
months ended January 31, 2002 include three months of revenue relating to the
acquisition of Articulent Inc. in April 2001. Gross margin is expected to be
approximately $24.1 million, or approximately 40% of revenue for the three
months ended January 31, 2002, compared to $24.3 million, or 52% of revenues for
the three months ended January 31, 2001. Gross margin includes lower gross
margins obtained on the storage solutions business which was acquired as part of
the acquisition of Articulent in April 2001. Results of operations also reflect
a significant order received from the U.S. government for the UltraNet family of
products. The products will be used for government operations. The order was
accepted at reduced margins in order to gain entry into this customer base.
Operating income is expected to be approximately $950,000 for the three months
ended January 31, 2002, compared to $5.8 million for the three months ended
January 31, 2001. Finally, diluted earnings per share from continuing operations
are expected to be in the range of $0.03 to $0.04 for the three months ended
January 31, 2002, compared to $0.17 per share for the three months ended January
31, 2001
ABOUT CNT
CNT is the global storage networking specialist and a pioneer in IP storage
solutions. Innovative products and services from CNT help IT professionals
design and implement cost-effective storage solutions that span diverse servers,
storage systems and networks--enabling enterprise-wide data access and
protection
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COMPUTER NETWORK TECHNOLOGY CORPORATION (CNT)
6000 Nathan Lane North Minneapolis, Minnesota 55442
Tel: U.S. 800-638-8324 International 763-268-6000 Fax: 763-268-6800
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CNT Announces Preliminary Fourth Quarter Results - Page 2
All brand names and product names are trademarks or registered trademarks of
their respective companies.
FOR ADDITIONAL INFORMATION, CONTACT:
Greg Barnum, VP of Finance & CFO
763-268-6110; greg_barnum@cnt.com
Certain statements in this press release and in documents we have filed with the
Securities and Exchange Commission, and oral statements made by or with the
approval of our executive officers contain "forward-looking statements" under
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements may include statements about our anticipated receipt of orders and
their impact on quarterly sales, business strategy, expectations regarding
future revenue levels, timing of and plans for the introduction or phase-out of
products or services, enhancements of existing products or services, plans for
hiring additional personnel, entering into strategic partnerships, and other
plans, objectives, expectations and intentions that are not historical fact.
The words "may," "should," "expect," "plan," "anticipate," "believe,"
"estimate," "predict," "intend," "potential" or "continue" and similar
expressions are generally intended to identify forward-looking statements. These
forward-looking statements involve risks and uncertainties. Actual results could
differ materially from those expressed or implied by these forward-looking
statements as a result of certain risk factors, including but not limited to (i)
competitive factors, including pricing pressures, (ii) variability in quarterly
sales, (iii) economic trends in various geographic markets; (iv) relationships
with our strategic partners; (v) unanticipated risks associated with introducing
new products and features; (vi) technological change affecting our products and
(vii) other events and other important factors disclosed previously and from
time to time in our filings with the U.S. Securities and Exchange Commission. We
assume no obligation to update any forward-looking statements. These statements
are only predictions. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements.
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