STORAGE

Colorado based StorageTeK today said its quarterly net income fell due to costs related to its proposed acquisition by Sun Microsystems, but revenue rose. StorageTek said second-quarter net income fell 12.6 percent to $31.1 million, or 29 cents per share, from $35.6 million, or 32 cents per share, a year earlier. Revenue rose 6.3 percent to $549.3 million from $516.6 million, beating the Reuters estimate of $532.4 million. Financial analysts had expected a profit of 35 cents a share, according to Reuters Estimates. The company, which makes data archiving products using magnetic tape as a storage medium, said tape revenue rose 13 percent from a year earlier. Officials from the company headquartered in Louisville blamed higher costs, including merger-related expenses. StorageTek and Sun announced June Second they'd agreed to merge in a $4.1 billion deal. StorageTek expects its merger with Sun to be completed in the late summer or early fall.