Adaptec Boosts Guidance

The company's shares rise on higher-than-expected fourth quarter results.
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Shares of Adaptec (ADPT) - Get Report had risen about 4% Tuesday after the data storage provider said fourth-quarter results would exceed expectations due to higher levels of information technology spending.

The company said it now expects revenue of $121 million and income before items of 4 cents to 6 cents a share, bettering the estimates given during the company's Jan. 26 conference call, when it said it expected revenue of $114 million to $116 million.

Under generally accepted accounting principles, Adaptec expects to earn 21 cents to 22 cents a share.

A Thomson First Call consensus analyst estimate had expected the company to earn 4 cents a share before items, on revenue of $115.2 million.

The company said higher levels of IT spending had resulted in higher-than-expected demand from its original equipment manufacturing customers and increased sales of its external storage products.

A year ago, Adaptec lost $3.1 million, or 3 cents a share, including items, on revenue of $105.6 million.

Adaptec's shares had recently climbed 36 cents to $9.13. The company will announce fourth-quarter results on April 29.