StorageTek Beats Lowered View

But the company has a weak quarter, posting revenue loss of 3% from a year ago.
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Earlier this month,

StorageTek

(STK) - Get Report

told Wall Street to expect a weak first quarter; on Monday it kept its word.

Revenue was off about 3% compared with a year ago, and net income was essentially flat, though the storage gear maker did squeeze out an extra penny of earnings per share.

"While we grew our profits on a year-over-year basis, this was not the quarter that we had expected to deliver," said Patrick J. Martin, StorageTek's CEO. "However, as we enter the second quarter, our backlog and pipeline of business have improved, and we anticipate delivering better results for the remainder of 2005."

The company reported after the closing bell that net income was $23.4 million, or 22 cents a diluted share, compared with $23.3 million, or 21 cents a share. Revenue in the March quarter was $499.3 million, compared with $515.1 million for the first quarter of 2004.

StorageTek, or Storage Technology Corp., as the Louisville, Colo., company is sometimes called, closed the regular trading day with a gain of 49 cents, or 1.7%, to $28.58 a share.