The Dismissal of This Case Along With Qualification of STEC's ZeusIOPS Into Several of the Enterprise-Storage OEMs is a Further Validation of STEC's Leadership in Enterprise-SSD Technology
SANTA ANA, Calif., Feb. 19, 2009 (GLOBE NEWSWIRE) -- STEC, Inc. (Nasdaq:STEC) announced today the mutual dismissal of the patent infringement lawsuit with Seagate Technology LLC (Nasdaq:STX). The lawsuit was initiated by Seagate's unsubstantiated allegations in April 2008 that STEC misappropriated Seagate's intellectual property. Following extensive discovery and evaluation of STEC's intellectual property and technology, Seagate dropped all claims associated with STEC's purported patent infringement. As part of the dismissal, no money was exchanged and neither party licensed its technology to the other. A copy of the settlement agreement is attached as an exhibit to our Form 8-k filed today.
"This is an important development in light of the mass adoption of SSDs," said Manouch Moshayedi, chairman and chief executive officer of STEC. "With Seagate having dropped its case against us, we believe the uniqueness of SSD design relative to traditional HDD technologies has been established. We have always contended that SSD does not borrow from existing hard-drive technology but rather offers an all-together new approach to storage. In addition, since STEC plays a major role in the proliferation of SSD technology, we view the dismissal as a vindication of our technology. We have a 15-year history of SSD design and development, over which time we have amassed strong SSD intellectual property. We have always maintained that the allegations brought against us by Seagate were without merit. With this case behind us, we can now optimize our resources to take full advantage of the market opportunities at hand."
STEC, Inc. is a leading global provider of Solid-State technologies and solutions tailored to meet the high-performance, high-reliability needs of original equipment manufacturers (OEMs). With headquarters in Santa Ana, California and locations worldwide, STEC leverages almost two decades of Solid-State knowledge and experience to deliver the industry's most comprehensive line of Solid-State Drives to the storage industry.
For more information, visit the company's web site at www.stec-inc.com.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements concerning: belief that the uniqueness of SSD design relative to traditional HDD technologies has been established; STEC playing a major role in the proliferation of SSD technology and viewing the dismissal as a vindication of its technology; belief that the allegations brought by Seagate were without merit; and optimizing our resources to take full advantage of the market opportunities at hand. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. Important factors which could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Risk Factors" in filings with the Securities and Exchange Commission made from time to time by STEC, including its Annual Report on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K. The information contained in this press release is a statement of STEC's present intention, belief or expectation. STEC may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in STEC's assumptions or otherwise. STEC undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
CONTACT: STEC, Inc.
Mitch Gellman, Vice President of Investor Relations