Storage management vendor Legato Systems Inc., amidst being acquired for $1.3 billion by EMC Corp., announced its financial results for the second quarter of 2003 today.
Legato, of Mountain View, Calif., took in $76.6 million for the quarter, losing $4.4 million overall. The announcement came via press release; there was no conference call because of the pending acquisition, it said.
In the prior quarter, Legato, then rumored to be for sale, earned $74 million but lost just $2.6 million. A year ago, Legato earned $61.6 million and lost a massive $45.9 million.
EMC, of Hopkinton, Mass., announced its acquisition plans on July 8, and will elaborate next week at its annual Analysts Day in New York City, officials previously said.
Meanwhile, despite users speaking generally in favor of the deal, there are three lawsuits against Legato because of the sale, officials disclosed in a 10-Q form filed with the U.S. Securities and Exchange Commission today. The cases are Fan v. Legato Systems Inc., et al., Batchelor v. [Legato CEO, Chairman, and President David Wright], et al., and Moskowitz v. Legato Systems Inc., et al.
"The complaints, each of which names as defendants the Company and each of the members of [the] board of directors individually, allege that the board breached its fiduciary duties to the shareholders and engaged in self dealing in connection with the recently-announced acquisition agreement with EMC Corporation," the document states.
"The complaint seeks to enjoin the acquisition and to force the board to obtain a transaction in the interests of the shareholders. We believe the allegations in the complaints are meritless, and intend to defend the Company and the individual defendants vigorously," it continued.