Cipher Data Products said Tuesday that it...
Cipher Data Products said Tuesday that it will be only “marginally profitable” on lower-than-anticipated revenues for the fourth quarter to end June 30.
In a prepared statement, Cipher Data Chairman Gary Liebl said his company’s revenue for the current quarter will come in at “closer to $60 million” than the $70 million that some analysts had pegged for the manufacturer of computer tape drives.
Profit for the three months apparently will be less than the $5.1 million Cipher reported for last year’s fourth quarter, when sales totaled $55.9 million. The quarter’s results will include revenue from the Irwin tape drive line acquired last month.
Liebl blamed a slowdown in demand “in recent weeks” for its half-inch, reel-to-reel tape drives as well as for 5.25-inch tape drives, both of which are used as backup data storage devices in computer systems.
Cipher Data Products released the statement after the stock market had closed Tuesday.
In over-the-counter trading, Cipher stock closed down $.125 at $9.375 a share.
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