Adaptec 2001 Annual Report Download - page 19

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19
Comparison of Fiscal 2001, 2000 and 1999
Net Revenues ($000,000)
Net revenues for 2001 decreased by $372.0 million, or 54%, from net revenues in 2000. In
contrast, net revenues for 2000 were higher than net revenues in 1999 by $398.9 million, or
135%.
Networking
Our networking revenues declined 55% in 2001 due to decreased unit sales of our netw orking
products caused by reduced demand for our customers’ products and excess inventories of our
products accumulated by our customers in the prior year. Also included in the 55% decline in
netw orking revenues was a 5% decline in the selling price of our products.
2000 netw orking revenues were 139% higher than networking revenues in 1999 due to an
increase in customer demand that resulted from the growth of our customers’ networking
equipment businesses, our customers’ continued transition from internally developed
application specific semiconductors to our standard semiconductors, our introduction and sale
of networking products that addressed additional netw ork functions, and a significant increase
in our customers’ inventory of our products.
Non-networking
Non-networking revenues declined 22% in 2001 compared to an increase of 68% in 2000. These
changes reflect the volume of purchases made by our principal customer in this segment. In
1996, w e discontinued development of follow-on products in this segment and we are now only
fulfilling customer orders for previously developed products.
2001 Change 2000 Change 1999
Networking products $300.2 (55%) $665.7 139% $278.5
Non-networking products $22.5 (22%) $29.0 68% $17.3
Total net revenues $322.7 (54%) $694.7 135% $295.8