Ontrack Data International, Inc. provides update on electronic discovery services
Revises second quarter guidance
MINNEAPOLIS, May 24, 2001 - ONTRACK Data International, Inc. (NASDAQ: ONDI), today provided updated information on the Company’s electronic discovery services. The Company also announced it expects revenue for second quarter ended June 30, 2001 to be in the range of $11.0 million to $11.5 million and the loss per diluted share before amortization of goodwill to be in the range of ($0.11) to ($0.15).
The revised revenue and earning guidance is due to recent customer feedback about the status of the mergers and acquisitions marketplace, a market segment Ontrack is currently dependent on for its electronic discovery services, and softness in the Company’s retail software utility business.
“Recent conversations with several clients in the legal market were in sharp contrast to those just a few weeks ago and suggest that in the short term, a significant percentage of merger and acquisition transactions have either been cancelled or will be delayed thus impacting the immediate need for electronic discovery,” said Mike Rogers, chief executive officer of Ontrack. “This underscores the importance of our stated strategy to aggressively pursue the significantly larger civil litigation marketplace in order to lessen our dependence on a limited number of anti-trust cases each year. We continue to believe in our long-term electronic discovery strategy to broaden our reach in the civil litigation marketplace.”
In the last week, Ontrack expanded its Washington D.C. office to include electronic discovery solutions and introduced the trade name “DataTrail™” which will be utilized within the legal community to more accurately describe the Company’s Electronic Information Management service offering.
Ontrack will host a conference call on Thursday, May 24, 2001 at 9:30 AM central daylight time to answer any additional questions. Interested parties may access the live call by dialing 1-800-205-6714 or on the Web at www.ontrack.com. A replay of the call will be available on the Web at www.ontrack.com and by phone for one week by dialing 1-800-633-8284 and entering the code: 18947467. The company will also be Webcasting its annual meeting on May 24, 2001 at 3:30 PM central daylight time at www.ontrack.com.
About Ontrack DataTrail™ Electronic Discovery Solutions
Ontrack DataTrail solutions provides electronic discovery services and software that help companies, law firms and federal agencies quickly and cost-effectively recover electronic information, such as user files, email and databases, for use in legal matters. Additional offerings include data collection, computer forensics and password/encryption de-coding.
Ontrack, a leading provider of data availability software and service solutions, helps customers protect, manage, recover and discover their valuable data. Using its hundreds of proprietary tools and techniques, Ontrack is able to recover lost or corrupted data from virtually all operating systems and types of storage devices through its do-it-yourself, remote and in-lab capabilities. Ontrack also offers award-winning PC utility software programs and services to help prevent critical data loss through a broad line of problem-solving, file-management and productivity utilities. Ontrack can be reached through its World Wide Web site at http://www.ontrack.com or by calling 800-872-2599. In addition to its Minneapolis headquarters, Ontrack operates locations in Los Angeles, Boulder, Colo., Washington D.C., New York, London, Paris and Stuttgart, Germany. Ontrack also makes its data recovery services available in Tokyo through its strategic alliance with Y-E Data, a company with over 25 years of experience in storage devices.
Ben Blomberg, 952-516-3617, Ben.Blomberg@krolldiscovery.com