StorageTek runs higher on revenue boost

Flying tape

Shares of StorageTek surged higher on Tuesday after the company raised its revenue forecasts based on strong tape sales and services.

StorageTek is looking for fourth quarter revenue of more than $650 million. Analysts were expecting the company to post revenue closer to $600 million for the quarter.

"We are excited about the robust financial performance that we delivered this quarter," said Patrick Martin, CEO of StorageTek. "We are pleased that we saw strength in both our storage products and services, particularly in our Automated Tape Solutions."

StorageTek shares jumped 9 percent, at the time of this report, on the optimism, bucking an otherwise down market. At $30.32, StorageTek has surpassed its previous 52-week high of $28.37.

The company is set to report fourth quarter results on Jan. 22. ®