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STEC Announces Fourth Quarter and Full-Year 2010 Results

SANTA ANA, Calif., Feb 14, 2011 (GlobeNewswire via COMTEX) --

STEC, Inc. (Nasdaq:STEC) announced today the Company's financial results for the fourth quarter and full-year ended December 31, 2010.

Revenue for the fourth quarter of 2010 was $93.9 million, a decrease of 11.4% from $106.0 million for the fourth quarter of 2009 and an increase of 9.1% from $86.1 million for the third quarter of 2010.

GAAP gross profit margin was 45.2% for the fourth quarter of 2010, compared to 50.9% for the fourth quarter of 2009 and 46.4% for the third quarter of 2010. GAAP diluted earnings per share from continuing operations was $0.34 for the fourth quarter of 2010, compared to $0.47 for the fourth quarter of 2009 and $0.26 for the third quarter of 2010.

Non-GAAP gross profit margin was 45.3% for the fourth quarter of 2010, compared to 51.0% for the fourth quarter of 2009 and 46.5% for the third quarter of 2010. Non-GAAP diluted earnings per share from continuing operations was $0.35 for the fourth quarter of 2010, compared to $0.51 for the fourth quarter of 2009 and $0.31 for the third quarter of 2010.

Revenue for full-year 2010 was $280.1 million, a decrease of 20.9% from $354.2 million for 2009. GAAP gross profit margin was 43.4% for 2010, compared to 47.7% for 2009. GAAP full-year 2010 diluted earnings per share from continuing operations was $0.56, compared to full-year 2009 diluted earnings per share from continuing operations of $1.41.

Non-GAAP gross profit margin was 43.6% for full-year 2010, compared to 48.4% for 2009. Non-GAAP diluted earnings per share from continuing operations was $0.69 for full-year 2010, compared to $1.61 for 2009.

A reconciliation of GAAP to non-GAAP results is provided in the tables included in this release.

Business Outlook

"I am very pleased with our fourth quarter 2010 revenue, margin, and EPS results," said Manouch Moshayedi, STEC's Chairman and Chief Executive Officer. "We surpassed our guidance for the fourth quarter and have set the stage for a successful first quarter 2011. Moreover, we had our best quarter ever for shipments of our flagship ZeusIOPS(R) Solid-State drives (SSDs) with ZeusIOPS revenues for the fourth quarter of 2010 increasing to $74.9 million from $74.0 million in the fourth quarter of 2009, and from $59.1 million in the third quarter of 2010.

"During 2010, we expanded our leading position in the Enterprise-SSD market increasing the number of our Enterprise-Storage and Enterprise-Server customers that have qualified our SSDs. In addition, we executed on our strategy to diversify our customer base by increasing the number of OEM SSD customers that contributed 10% or more of our revenue to three for full-year 2010 compared to one such customer for full-year 2009.

"Furthermore, our MLC-based ZeusIOPS SSDs enabled by our proprietary CellCare(TM) technology have now been qualified and are available to our OEM customers on a production-level basis. We believe this sends an important signal that high-performance MLC-based SSDs are ready for the Enterprise-Storage market.

"During the fourth quarter of 2010, our mix of ZeusIOPS SAS interface SSDs grew to 42% of our total ZeusIOPS sales from 20% in the third quarter of 2010. Furthermore, we believe that sales of our SAS ZeusIOPS SSDs will exceed that of our Fibre Channel ZeusIOPS SSDs during the first quarter of 2011. This marks an important transition of our customers to the highest-performance technologies and highlights our adaptability to the rapidly evolving storage industry.

"Ultimately, we believe that these milestones along with the increasing awareness and knowledge of the benefits of Enterprise SSDs by our OEM customers and their end-user customers, will contribute to a strong first quarter 2011."

Guidance

STEC's current expectation for the first quarter of 2011 is as follows:

  --  Revenue to range from $90 million to $92 million.
  --  Diluted non-GAAP income per share to range from $0.32 to $0.34.


STEC's projected non-GAAP earnings per share results exclude employee stock compensation expense and other items that the Company does not consider indicative of its underlying business performance.

Conference Call

STEC will hold an open conference call to discuss results for the fourth quarter and full-year 2010. The call will take place today at 5:30 a.m., Pacific/ 8:30 a.m., Eastern. The call-in numbers for the conference are (877) 645-6380 (United States and Canada) and (914) 495-8562 (International).

Webcast

This call will be webcast. The webcast can be accessed by clicking on the red "Investors" tab at the top of the home page at www.stec-inc.com. Then click on the "Audio Presentations" button.

Replay

The webcast will also be archived and available for replay beginning approximately two hours after the live call concludes.

About STEC, Inc. (Nasdaq:STEC)

STEC, Inc. is a leading global provider of solid-state drive 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 drive knowledge and experience to deliver the industry's most comprehensive line of solid-state drives to the storage industry.

For information about STEC and to subscribe to the Company's "Email Alerts" service, please visit STEC's web site at www.stec-inc.com, click on the red "Investors" tab at the top of the home page and then click "Email Alerts."

The STEC, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1079

STEC, the STEC logo, ZeusIOPS, and CellCare are either registered trademarks or trademarks of STEC, Inc. in the United States and certain other countries. All other trademarks referred to herein are the property of their respective owners.

Use of Non-GAAP Financial Information

To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), STEC uses non-GAAP financial measures (non-GAAP gross profit, non-GAAP gross profit percentage, non-GAAP operating expenses, non-GAAP operating income, non-GAAP income from continuing operations and non-GAAP diluted earnings per share from continuing operations) that exclude Malaysian facility start-up costs, employee stock compensation, employee severance, intellectual property litigation costs, securities and derivative action litigation costs, special charges for restructuring, Malaysia government incentive grant income and contract termination settlement proceeds. Management excludes these items because it believes that the non-GAAP measures enhance an investor's overall understanding of STEC's financial performance and future prospects by being more reflective of the Company's core, recurring operational activities and to be more comparable with the results of the Company over various periods. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. Guidance is provided only on a non-GAAP basis due to the inherent difficulty of forecasting the timing or amount of such items. Difficulties in forecasting the non-GAAP items include the timing of issuing employee stock compensation, which could impact the valuation and related expense, and the timing of receiving incentive grant income from the Malaysian government. These items could be materially significant in the Company's GAAP results in any period. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of the Company's core operating results and trends for the periods presented. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies' financial information and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. A complete reconciliation between GAAP and non-GAAP information referred to in this release is provided in tables included in this release. Certain amounts reported in prior releases may have been reclassified to conform to the current quarter's non-GAAP presentation.

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 growing acceptance, adoption and qualification of SSDs within the Enterprise-Storage and Enterprise-Server markets; anticipated increased activity from STEC's customers; the benefits from CellCare and other developing technologies; the capabilities and performance of STEC's products; anticipated increase in sales of STEC's ZeusIOPS SSDs; the rapidly evolving storage industry; and expected first quarter 2011 revenue and earnings per share. 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. Although STEC believes that the forward-looking statements contained in this release are reasonable, it can give no assurance that its expectations will be fulfilled. Important factors which could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed 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. Special attention is directed to the portions of those documents entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." 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.

                         STEC, INC.
       UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
          (in thousands, except per share amounts)



                                  -----------  -----------

                                   December     December
                                   31, 2010     31, 2009
                                  -----------  -----------
             ASSETS:
  Current Assets:
   Cash and cash equivalents        $ 170,457    $ 135,658
   Short-term investments                  --       10,000
   Accounts receivable, net of
    allowances of $3,853 at
    December 31, 2010 and $3,557
    at December 31, 2009               47,831       78,373
   Inventory                           88,968       42,739

   Other current assets                 4,606        2,840
                                  -----------  -----------

     Total current assets             311,862      269,610
                                  -----------  -----------

  Leasehold interest in land            2,596        2,543
  Property, plant and equipment,
   net                                 35,037       39,911
  Goodwill                              1,682        1,682
  Other long-term assets                5,173        5,368

  Deferred income taxes                 9,304        6,448
                                  -----------  -----------

     Total assets                   $ 365,654    $ 325,562
                                  ===========  ===========

   LIABILITIES AND SHAREHOLDERS'
              EQUITY:
  Current Liabilities:
   Accounts payable                  $ 25,762     $ 29,911

   Accrued and other liabilities       13,470       14,070
                                  -----------  -----------

     Total current liabilities         39,232       43,981
                                  -----------  -----------

  Long-term income taxes payable        4,248        2,986

  Commitments and contingencies            --           --
  Shareholders' Equity:
   Preferred stock, $0.001 par
    value, 20,000 shares
    authorized, no shares
    outstanding                            --           --
   Common stock, $0.001 par
    value, 100,000 shares
    authorized, 51,046 shares
    issued and outstanding as of
    December 31, 2010 and 50,284
    shares issued and
    outstanding as of December
    31, 2009                               51           50
   Additional paid-in capital         169,127      154,087

   Retained earnings                  152,996      124,458
                                  -----------  -----------

     Total shareholders' equity       322,174      278,595
                                  -----------  -----------
     Total liabilities and
      shareholders' equity          $ 365,654    $ 325,562
                                  ===========  ===========


                                   STEC, INC.
               UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
                   (in thousands, except per share amounts)



                                ---------------------  ----------------------

                                    Quarter Ended       Year Ended December
                                     December 31,               31,
                                ---------------------  ----------------------

                                   2010       2009        2010        2009
                                ---------  ----------  ----------  ----------
  Net revenues                   $ 93,918   $ 106,004   $ 280,149   $ 354,183

  Cost of revenues                 51,430      52,078     158,430     185,236
                                ---------  ----------  ----------  ----------
   Gross profit                    42,488      53,926     121,719     168,947

  Sales and marketing               5,703       5,387      19,396      20,352
  General and administrative        7,517       8,157      28,623      28,543
  Research and development         12,054       9,969      44,148      27,481

  Special charges                     413       (125)         990       3,408
                                ---------  ----------  ----------  ----------
   Total operating expenses        25,687      23,388      93,157      79,784
    Operating income               16,801      30,538      28,562      89,163

  Other income (expense)            1,942        (15)       2,579         601
                                ---------  ----------  ----------  ----------
   Income from continuing
    operations before income
    taxes                          18,743      30,523      31,141      89,764

  Provision for income taxes      (1,245)     (6,015)     (2,440)    (18,221)
                                ---------  ----------  ----------  ----------
   Income from continuing
    operations                     17,498      24,508      28,701      71,543
  Discontinued operations:
  Income (loss) from
   operations of Consumer
   Division                            --       2,194       (261)       1,838
   (Provision) benefit for
    income taxes                     (11)       (909)          98       (768)
                                ---------  ----------  ----------  ----------
   (Loss) income from
    discontinued operations          (11)       1,285       (163)       1,070
                                ---------  ----------  ----------  ----------

    Net income                   $ 17,487    $ 25,793    $ 28,538    $ 72,613
                                =========  ==========  ==========  ==========

  Net income (loss) per share:
   Basic:
    Continuing operations          $ 0.34      $ 0.49      $ 0.57      $ 1.45

    Discontinued operations            --        0.02      (0.01)        0.02
                                ---------  ----------  ----------  ----------

     Total                         $ 0.34      $ 0.51      $ 0.56      $ 1.47
                                =========  ==========  ==========  ==========
   Diluted:
    Continuing operations          $ 0.34      $ 0.47      $ 0.56      $ 1.41

    Discontinued operations            --        0.03      (0.01)        0.02
                                ---------  ----------  ----------  ----------

     Total                         $ 0.34      $ 0.50      $ 0.55      $ 1.43
                                =========  ==========  ==========  ==========

  Shares used in per share
   computation:

   Basic                           50,956      50,264      50,699      49,350
                                =========  ==========  ==========  ==========

   Diluted                         52,063      51,601      51,432      50,896
                                =========  ==========  ==========  ==========

                               STEC, INC.


                        Non-GAAP Reconciliations


The non-GAAP financial measures included in the following tables are non-GAAP gross profit, non-GAAP gross profit percentage, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin percentage, non-GAAP income from continuing operations and non-GAAP diluted earnings per share from continuing operations, which adjust for the following items: (a) Malaysian facility start-up costs, (b) employee stock compensation expense, (c) employee severance, (d) IP litigation costs, (e) securities and derivative action litigation costs, (f) special charges related to restructuring costs, (g) Malaysia government incentive grant income and (h) contract termination settlement proceeds. Management believes these non-GAAP financial measures enhance an investor's overall understanding of the Company's financial performance and future prospects by being more reflective of the Company's core, recurring operational activities and are more comparable with the results of the Company over various periods. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies' financial information and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Details of the items excluded from GAAP financial results in calculating non-GAAP financial measures are as follows:

a) The Malaysia facility start-up costs relate primarily to expenses associated with the Company's manufacturing facility in Penang, Malaysia in which construction was completed in 2008. During 2008 and the first quarter of 2009, the Company used this facility to train production employees, obtain facility certifications such as ISO certification, install the necessary accounting and information systems and conduct customer audits to better prepare for the full-scale transition of the Company's U.S. operations to Malaysia in 2009. As full-scale production was not completely transitioned to Malaysia until the second quarter of 2009, management believes excluding Malaysia start-up costs from the Company's operations for the reporting periods through the first quarter of 2009 provides investors with a better means of evaluating the Company's operations during the Malaysia facility start-up periods.

b) Employee stock compensation costs incurred in connection with Accounting Standards Codification 718, "Compensation -- Stock Compensation," have been excluded as management omits these expenses when evaluating its core operating activities, for strategic decision making, forecasting future results and evaluating current performance.

c) Employee severance relates to one-time costs incurred related to the termination of certain U.S.-based employees. The Company provides compensation to certain employees as an accommodation upon termination of employment without cause. Management believes that excluding severance costs from operating results provides investors with a better means for measuring current Company performance.

d) Intellectual property litigation costs relate to a patent infringement suit filed against us by a competitor on April 14, 2008. The Company filed an answer to the lawsuit asserting affirmative defenses of non-infringement, invalidity and counter-claimed for a declaratory judgment of non-infringement, invalidity, and unenforceability for all patents in question plus legal fees and costs. In February 2009, the lawsuit was mutually dismissed by both parties and no further costs have been incurred by the Company related to this matter after the first quarter of 2009. Management believes that legal and consulting fees incurred in conjunction with this lawsuit for the periods presented should be excluded when evaluating core operations since management believes these costs are non-recurring.

e) In the fourth quarter of 2009 and first quarter of 2010, certain class action securities complaints and shareholder derivative actions were filed against the Company and certain officers and directors of the Company. Under the Company's Directors and Officers insurance policies, the Company was required to pay a deductible of $500,000 for the initial attorneys' fees and costs incurred related to these lawsuits. After the first $500,000 of attorneys' fees and costs were incurred in the fourth quarter of 2009, and until the Company's policy limits are exhausted, the insurance carriers, subject to their reservations of rights to deny or limit coverage, should be responsible for covering a substantial portion of the attorneys' fees and costs associated with the Company's defense of these actions. Management believes the insurance policy deductible is a non-recurring expense and should be excluded when evaluating core operations for fourth quarter of 2009.

f) Special charges relate to a restructuring plan that the Company implemented during the first quarter of 2009. The Company completed the first phase of the restructuring plan at the end of the first quarter of 2010 and started the second phase of the restructuring plan in the second quarter of 2010. These charges include expenses related to a reduction in the Company's workforce and asset impairment charges. The special charges primarily impacted U.S.-based operations and employees as part of the overall transition of certain operations to the Company's facility in Penang, Malaysia. Management believes that costs incurred in connection with the restructuring plan, which were primarily related to workforce reduction severance costs and consolidation of facilities expenses are non-recurring in nature and should be excluded when evaluating core operations.

g) Malaysia government grant incentive income relates to proceeds received from the Ministry of International Trade and Industry ("MITI") in Malaysia. The grants are provided by MITI as incentive for the Company incurring research and development expenses and employee training costs for its operations in Malaysia. Since the grants represent reimbursement of expenses that were previously included by the Company as a non-GAAP item under Malaysia start-up costs, the Company has reversed the related grant reimbursement income from its second quarter of 2010 non-GAAP results.

h) During the fourth quarter of 2010, the Company received proceeds in conjunction with a settlement received from a customer related to a termination of a contract. Since the contract settlement proceeds are non-recurring, management believes that it should be excluded when evaluating core operations.

                                                STEC, INC.
      Schedule Reconciling GAAP Income From Continuing Operations to Non-GAAP Income From Continuing
                                                Operations
                                ($ in thousands, except per share amounts)
                                               (unaudited)



                                                   -------------------------------  --------------------
                                                        For the Quarters Ended       For the Year Ended

                                                    December   December  September
                                                      31,        31,        30,         December 31,
                                                   ---------  ---------  ---------  --------------------

                                                      2010       2009       2010       2010       2009
                                                   ---------  ---------  ---------  ---------  ---------

  GAAP income from continuing operations            $ 17,498   $ 24,508   $ 13,619   $ 28,701   $ 71,543
                                                   =========  =========  =========  =========  =========

  The non-GAAP amounts have been adjusted to
   exclude the following items:

  Excluded from cost of sales:
   Malaysian facility start-up costs (a)                $ --       $ --       $ --       $ --    $ 2,249

   Employee stock compensation (b)                        95         89         59        346        292
                                                   ---------  ---------  ---------  ---------  ---------
                                                          95         89         59        346      2,541
  Excluded from operating expenses:
   Malaysian facility start-up costs (a)                  --         --         --         --      1,635
   Employee stock compensation (b)                     2,554      1,824      2,440      8,834      4,805
   Employee severance (c)                                 --         --         --         84         --
   IP litigation costs (d)                                --         --         --         --      1,249
   Securities and derivative action litigation
    costs (e)                                             --        500         --         --        500

   Special charges - restructuring costs (f)             413      (126)        625        990      3,408
                                                   ---------  ---------  ---------  ---------  ---------
                                                       2,967      2,198      3,065      9,908     11,597
  Excluded from other income:
   Malaysia government incentive grant income (g)         --         --         --      (327)      (560)

   Contract termination settlement proceeds (h)      (2,000)         --         --    (2,000)         --
                                                   ---------  ---------  ---------  ---------  ---------
                                                     (2,000)         --         --    (2,327)      (560)

  Total non-GAAP adjustments before income tax         1,062      2,287      3,124      7,927     13,578

  Income tax effect on non-GAAP adjustments             (83)      (464)      (425)    (1,386)    (3,029)
                                                   ---------  ---------  ---------  ---------  ---------


  Net effect of adjustments to GAAP net income           979      1,823      2,699      6,541     10,549
                                                   ---------  ---------  ---------  ---------  ---------

  Non-GAAP income from continuing operations        $ 18,477   $ 26,331   $ 16,318   $ 35,242   $ 82,092
                                                   =========  =========  =========  =========  =========

  GAAP diluted earnings per share from continuing
   operations                                         $ 0.34     $ 0.47     $ 0.26     $ 0.56     $ 1.41
  Impact of non-GAAP adjustments on diluted
   earnings per share                                   0.01       0.04       0.05       0.13       0.20
                                                   ---------  ---------  ---------  ---------  ---------
  Non-GAAP diluted earnings per share from
   continuing operations                              $ 0.35     $ 0.51     $ 0.31     $ 0.69     $ 1.61
                                                   =========  =========  =========  =========  =========

  (a) - (h) See corresponding footnotes above.


                                         STEC, INC.
                           Selected Non-GAAP Financial Information
                                       ($ in thousands)
                                         (unaudited)



                                    -------------------------------  ----------------------

                                         For the Quarters Ended       For the Year Ended,
                                    -------------------------------  ----------------------

                                     December   December  September   December    December
                                       31,        31,        30,        31,         31,
                                    ---------  ---------  ---------  ----------  ----------

                                       2010       2009       2010       2010        2009
                                    ---------  ---------  ---------  ----------  ----------

  GAAP gross profit                  $ 42,488   $ 53,926   $ 39,923   $ 121,719   $ 168,947
   Malaysia facility start-up
    costs (a)                              --         --         --          --       2,249

   Employee stock compensation (b)         95         89         59         346         292
                                    ---------  ---------  ---------  ----------  ----------

  Non-GAAP gross profit              $ 42,583   $ 54,015   $ 39,982   $ 122,065   $ 171,488
                                    =========  =========  =========  ==========  ==========

  GAAP gross profit %                   45.2%      50.9%      46.4%       43.4%       47.7%
   Effect of reconciling item on
    gross profit %                       0.1%       0.1%       0.1%        0.2%        0.7%
                                    ---------  ---------  ---------  ----------  ----------

  Non-GAAP gross profit %               45.3%      51.0%      46.5%       43.6%       48.4%
                                    =========  =========  =========  ==========  ==========

  GAAP operating expenses            $ 25,687   $ 23,388   $ 24,857    $ 93,157    $ 79,784
   Malaysia facility start-up
    costs (a)                              --         --         --          --     (1,635)
   Employee stock compensation (b)    (2,554)    (1,824)    (2,440)     (8,834)     (4,805)
   Employee severance (c)                  --         --         --        (84)          --
   IP litigation costs (d)                 --         --         --          --     (1,249)
   Securities and derivative
    action litigation costs (e)            --      (500)         --          --       (500)
   Special charges - restructuring
    costs (f)                           (413)        126      (625)       (990)     (3,408)
                                    ---------  ---------  ---------  ----------  ----------

  Non-GAAP operating expenses        $ 22,720   $ 21,190   $ 21,792    $ 83,249    $ 68,187
                                    =========  =========  =========  ==========  ==========

  GAAP operating income              $ 16,801   $ 30,538   $ 15,066    $ 28,562    $ 89,163
   Malaysia facility start-up
    costs (a)                              --         --         --          --       3,884
   Employee stock compensation (b)      2,649      1,913      2,499       9,180       5,097
   Employee severance (c)                  --         --         --          84          --
   IP litigation costs (d)                                                            1,249
   Securities and derivative
    action litigation costs (e)            --        500         --          --         500
   Special charges - restructuring
    costs (f)                             413      (126)        625         990       3,408
                                    ---------  ---------  ---------  ----------  ----------

  Non-GAAP operating income          $ 19,863   $ 32,825   $ 18,190    $ 38,816   $ 103,301
                                    =========  =========  =========  ==========  ==========

  GAAP operating margin %               17.9%      28.8%      17.5%       10.2%       25.2%
   Effect of reconciling items on
    operating margin %                   3.2%       2.2%       3.6%        3.7%        4.0%
                                    ---------  ---------  ---------  ----------  ----------

  Non-GAAP operating margin %           21.1%      31.0%      21.1%       13.9%       29.2%
                                    =========  =========  =========  ==========  ==========

  (a) - (f) Refer to the corresponding footnotes above.


This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: STEC, Inc.

CONTACT: STEC, Inc.
Mitch Gellman, Vice President of Investor Relations
(949) 260-8328
ir@stec-inc.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding sTec, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.