According to a recent filing with the Security and Exchange Commission, as of Sept.
29, StorageTek had substantially completed all of its restructuring. "The Company
anticipates annual savings of approximately $150 million will result from the
restructuring activities initiated in October 1999," the filing stated. "Because the
October 1999 restructuring activities were implemented in stages throughout the nine
months of 2000, the company anticipates the realized savings for the year 2000 will be
slightly in excess of $100 million."
With StorageTek's books now balanced, Martin said, the compaany will be eyeing
expansion into new global markets, including China. Martin said expects to increase
revenue by 50% and to grow profits by eight to 10 times over the next three years.
And, while StorageTek's recent expansion into the SAN market is wise, the company is
at a disadvantage in that space because it faces stronger contenders, analysts have
said.
"Will [StorageTek] ever compete with EMC [Corp.] [in the disk market]? I think not,"
said Broderick. "I think they're the leader in tape and tape recognition technology,
and they'll keep that."
