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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549




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FORM 10-Q



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|  |  |                                                                                        
|- |  | ---------------------------------------------------------------------------------------
|x |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|  |  |                                                                                        
|  |  | For the quarterly period ended January 31, 2003                                        

Or

|  |  |                                                                                         
|- |  | ----------------------------------------------------------------------------------------
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|  |  |                                                                                         
|  |  | For the transition period from  to                                                      

Commission file number 0-21103



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ADVANCED DIGITAL INFORMATION CORPORATION

|                            |  |                               
|--------------------------- |  | ------------------------------
|Incorporated under the laws |  | I.R.S. Employer Identification
|of the State of Washington  |  | No. 91-1618616                

11431 Willows Road N.E.
P.O. Box 97057
Redmond, Washington 98073-9757

(425) 881-8004

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the Registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2)

Yes x No o

The total shares of common stock without par value outstanding at the end
of the quarter reported is 61,929,852.



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TABLE OF CONTENTS



|                                                                                                             |                                                                                               |  |  |  |  |  |  | 
|------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|PART I-FINANCIAL INFORMATION                                                                                
|                                                                                                             | Item 1. Financial Statements                                                                 
|Advanced Digital Information Corporation Notes to Interim Consolidated Financial Statements January 31, 2003
|                                                                                                             | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                                                                                                             | Item 3. Quantitative and Qualitative Disclosures About Market Risk                           
|                                                                                                             | Item 4. Controls and Procedures                                                              
|PART II  OTHER INFORMATION                                                                                 
|                                                                                                             | Item 1. Legal Proceedings                                                                    
|                                                                                                             | Item 2. Changes in Securities                                                                
|                                                                                                             | Item 3. Defaults Upon Senior Securities                                                      
|                                                                                                             | Item 4. Submission of Matters to a Vote of Security Holders                                  
|                                                                                                             | Item 5. Other Information                                                                    
|                                                                                                             | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES                                                                                                  
|CERTIFICATIONS                                                                                              
|EXHIBIT 99.1                                                                                                
|EXHIBIT 99.2                                                                                                



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##### Table of Contents






PART I-FINANCIAL INFORMATION




Item 1. Financial Statements

Advanced Digital Information Corporation
Consolidated Balance Sheets
(In thousands, except for share data)

|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        |             |         |             |        |         |  | 
|----------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | ------------------------------------ | -------------------------- | ------------------------------------ | ------ | ----------- | ------- | ----------- | ------ | ------- |  | 
|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        | October 31, |         | January 31,
|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        | 2002        |         | 2003       
|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        |             |         |            
|                                                                                                      |                                                                                                                   |                                      |                            | Assets                               |        |             |         |             |        |         |  | 
|Current assets:                                                                                       |                                                                                                                   |                                      |                            |                                      |        |             |         |            
|                                                                                                      | Cash and cash equivalents                                                                                         |                                      | $                          | 150,741                              |        |             | $       | 156,518     |       
|                                                                                                      | Accounts receivable, net of allowances of $1,379 in 2002
and $1,561 in 2003                                       |                                      |                            | 71,383                               |        |             |         | 76,288      |       
|                                                                                                      | Inventories, net                                                                                                  |                                      |                            | 32,296                               |        |             |         | 33,790      |       
|                                                                                                      | Short-term marketable securities                                                                                  |                                      |                            | 24,878                               |        |             |         | 29,020      |       
|                                                                                                      | Prepaid expenses and other                                                                                        |                                      |                            | 2,245                                |        |             |         | 2,441       |       
|                                                                                                      | Income taxes receivable                                                                                           |                                      |                            | 6,305                                |        |             |         | 5,641       |       
|                                                                                                      | Deferred income taxes                                                                                             |                                      |                            | 13,250                               |        |             |         | 12,871      |       
|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        |             |         |             |       
|                                                                                                      |                                                                                                                   |                                      | Total current assets       |                                      |        | 301,098     |         |             |        | 316,569 | 
|Property, plant and equipment, net of accumulated depreciation of
$20,672 in 2002 and $25,041 in 2003 |                                                                                                                   |                                      | 48,722                     |                                      |        |             | 49,310  |            
|Service parts for maintenance, net of accumulated amortization
of $15,545 in 2002 and $16,994 in 2003 |                                                                                                                   |                                      | 22,936                     |                                      |        |             | 23,831  |            
|Deferred income taxes                                                                                 |                                                                                                                   |                                      | 3,347                      |                                      |        |             | 3,342   |            
|Long-term marketable securities                                                                       |                                                                                                                   |                                      | 7,221                      |                                      |        |             | 6,173   |            
|Investments                                                                                           |                                                                                                                   |                                      | 10,928                     |                                      |        |             | 3,228   |            
|Intangible and other assets, net of accumulated amortization of
$3,869 in 2002 and $4,064 in 2003     |                                                                                                                   |                                      | 4,885                      |                                      |        |             | 4,697   |            
|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        |             |         |             |       
|                                                                                                      |                                                                                                                   | $                                    | 399,137                    |                                      |        | $           | 407,150 |            
|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        |             |         |             |       
|                                                                                                      |                                                                                                                   |                                      |                            | Liabilities and Shareholders Equity |        |             |         |             |        |         |  | 
|Current liabilities:                                                                                  |                                                                                                                   |                                      |                            |                                      |        |             |         |            
|                                                                                                      | Accounts payable                                                                                                  |                                      | $                          | 35,126                               |        |             | $       | 33,827      |       
|                                                                                                      | Accrued liabilities                                                                                               |                                      |                            | 11,668                               |        |             |         | 15,834      |       
|                                                                                                      | Deferred revenue                                                                                                  |                                      |                            | 20,343                               |        |             |         | 21,551      |       
|                                                                                                      | Bank lines of credit and current portion of long-term debt                                                        |                                      |                            | 2,282                                |        |             |         | 2,750       |       
|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        |             |         |             |       
|                                                                                                      |                                                                                                                   |                                      | Total current liabilities  |                                      |        | 69,419      |         |             |        | 73,962  | 
|Long-term debt                                                                                        |                                                                                                                   |                                      | 984                        |                                      |        |             | 993     |            
|Commitments                                                                                           |                                                                                                                   |                                      |                            |                                      |        |             |         |            
|Shareholders equity:                                                                                 |                                                                                                                   |                                      |                            |                                      |        |             |         |            
|                                                                                                      | Preferred stock, no par value; 4,000,000 shares authorized;
none issued and outstanding                           |                                      |                            |                                     |        |             |         |            |       
|                                                                                                      | Common stock, no par value; 160,000,000 shares authorized,
61,929,852 issued and outstanding (61,874,990 in 2002) |                                      |                            | 222,687                              |        |             |         | 222,805     |       
|                                                                                                      | Retained earnings                                                                                                 |                                      |                            | 108,159                              |        |             |         | 109,845     |       
|                                                                                                      | Accumulated other comprehensive income (loss):                                                                    |                                      |                            |                                      |        |             |         |             |       
|                                                                                                      |                                                                                                                   | Cumulative translation adjustment    |                            |                                      | (1,887 | )           |         |             | (1,103 | )      
|                                                                                                      |                                                                                                                   | Unrealized investment gains (losses) |                            |                                      | (225   | )           |         |             | 648    |        
|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        |             |         |             |       
|                                                                                                      |                                                                                                                   |                                      | Total shareholders equity |                                      |        | 328,734     |         |             |        | 332,195 | 
|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        |             |         |             |       
|                                                                                                      |                                                                                                                   | $                                    | 399,137                    |                                      |        | $           | 407,150 |            
|                                                                                                      |                                                                                                                   |                                      |                            |                                      |        |             |         |             |       

See the accompanying notes to these consolidated financial statements.

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Advanced Digital Information Corporation

Consolidated Statements of Operations

(In thousands, except for per share data)

|                                         |                                                  |   |                    |        |      |   |        |        |  
|---------------------------------------- | ------------------------------------------------ | - | ------------------ | ------ | ---- | - | ------ | ------ | -
|                                         |                                                  |   | Three months ended
|                                         |                                                  |   | January 31,       
|                                         |                                                  |   |                   
|                                         |                                                  |   | 2002               |        | 2003
|                                         |                                                  |   |                    |        |     
|Net sales                                |                                                  | $ | 96,723             |        |      | $ | 97,096 |       
|Cost of sales                            |                                                  |   | 72,921             |        |      |   | 67,240 |       
|                                         |                                                  |   |                    |        |      |   |        |       
|                                         | Gross profit                                     |   |                    | 23,802 |      |   |        | 29,856 |  
|                                         |                                                  |   |                    |        |      |   |        |       
|Operating expenses:                      |                                                  |   |                    |        |      |   |        |       
|                                         | Sales and marketing                              |   |                    | 10,926 |      |   |        | 13,141 |  
|                                         | General and administrative                       |   |                    | 5,412  |      |   |        | 5,975  |  
|                                         | Research and development                         |   |                    | 6,801  |      |   |        | 10,304 |  
|                                         |                                                  |   |                    |        |      |   |        |       
|                                         |                                                  |   | 23,139             |        |      |   | 29,420 |       
|                                         |                                                  |   |                    |        |      |   |        |       
|Operating profit                         |                                                  |   | 663                |        |      |   | 436    |       
|                                         |                                                  |   |                    |        |      |   |        |       
|Other income (expense):                  |                                                  |   |                    |        |      |   |        |       
|                                         | Interest income                                  |   |                    | 1,046  |      |   |        | 651    |  
|                                         | Interest expense                                 |   |                    | (60    | )    |   |        | (51    | )
|                                         | Gain on securities transactions, net             |   |                    | 2,244  |      |   |        | 712    |  
|                                         | Foreign currency transaction gains (losses), net |   |                    | (279   | )    |   |        | 962    |  
|                                         | Other                                            |   |                    | (8     | )    |   |        | (95    | )
|                                         |                                                  |   |                    |        |      |   |        |       
|                                         |                                                  |   | 2,943              |        |      |   | 2,179  |       
|                                         |                                                  |   |                    |        |      |   |        |       
|Income before provision for income taxes |                                                  |   | 3,606              |        |      |   | 2,615  |       
|Provision for income taxes               |                                                  |   | 1,224              |        |      |   | 929    |       
|                                         |                                                  |   |                    |        |      |   |        |       
|Net income                               |                                                  | $ | 2,382              |        |      | $ | 1,686  |       
|                                         |                                                  |   |                    |        |      |   |        |       
|Basic net income per share               |                                                  | $ | 0.04               |        |      | $ | 0.03   |       
|                                         |                                                  |   |                    |        |      |   |        |       
|Diluted net income per share             |                                                  | $ | 0.04               |        |      | $ | 0.03   |       
|                                         |                                                  |   |                    |        |      |   |        |       

See the accompanying notes to these consolidated financial statements.

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Advanced Digital Information Corporation

Consolidated Statements of Cash Flows

(In thousands)

|                                                 |                                                                                   |                                            |         |                    |        |      |         |        |        |  
|------------------------------------------------ | --------------------------------------------------------------------------------- | ------------------------------------------ | ------- | ------------------ | ------ | ---- | ------- | ------ | ------ | -
|                                                 |                                                                                   |                                            |         | Three months ended
|                                                 |                                                                                   |                                            |         | January 31,       
|                                                 |                                                                                   |                                            |         |                   
|                                                 |                                                                                   |                                            |         | 2002               |        | 2003
|                                                 |                                                                                   |                                            |         |                    |        |     
|Cash flows from operating activities:            |                                                                                   |                                            |         |                    |        |      |         |       
|                                                 | Net income                                                                        |                                            | $       | 2,382              |        |      | $       | 1,686  |       
|                                                 | Adjustments to reconcile net income to net cash
provided by operating activities: |                                            |         |                    |        |      |         |        |       
|                                                 |                                                                                   | Depreciation and amortization              |         |                    | 5,475  |      |         |        | 4,878  |  
|                                                 |                                                                                   | Allowance for doubtful accounts receivable |         |                    | 494    |      |         |        | 127    |  
|                                                 |                                                                                   | Inventory obsolescence                     |         |                    | 830    |      |         |        | 1,551  |  
|                                                 |                                                                                   | Gain on securities transactions            |         |                    | (2,244 | )    |         |        | (712   | )
|                                                 |                                                                                   | Deferred income taxes                      |         |                    | (180   | )    |         |        | (63    | )
|                                                 |                                                                                   | Tax benefit from exercise of stock options |         |                    | 967    |      |         |        | 246    |  
|                                                 | Change in assets and liabilities:                                                 |                                            |         |                    |        |      |         |        |       
|                                                 |                                                                                   | Accounts receivable                        |         |                    | (4,678 | )    |         |        | (5,451 | )
|                                                 |                                                                                   | Inventories                                |         |                    | 4,547  |      |         |        | (2,943 | )
|                                                 |                                                                                   | Prepaid expenses and other assets          |         |                    | 462    |      |         |        | (152   | )
|                                                 |                                                                                   | Service parts for maintenance              |         |                    | (4,036 | )    |         |        | (1,422 | )
|                                                 |                                                                                   | Accounts payable                           |         |                    | 2,920  |      |         |        | (1,659 | )
|                                                 |                                                                                   | Accrued liabilities                        |         |                    | (1,219 | )    |         |        | 3,696  |  
|                                                 |                                                                                   | Income taxes receivable                    |         |                    | 4,258  |      |         |        | 727    |  
|                                                 |                                                                                   | Deferred revenue                           |         |                    | (764   | )    |         |        | 775    |  
|                                                 |                                                                                   |                                            |         |                    |        |      |         |        |       
|Net cash provided by operating activities        |                                                                                   |                                            | 9,214   |                    |        |      | 1,284   |       
|                                                 |                                                                                   |                                            |         |                    |        |      |         |       
|Cash flows from investing activities:            |                                                                                   |                                            |         |                    |        |      |         |       
|                                                 | Purchase of property, plant and equipment                                         |                                            |         | (6,724             | )      |      |         | (3,149 | )     
|                                                 | Purchase of marketable securities                                                 |                                            |         |                   |        |      |         | (1,224 | )     
|                                                 | Proceeds from securities transactions                                             |                                            |         | 11,996             |        |      |         | 7,885  |       
|                                                 | Purchase of other investments                                                     |                                            |         | (400               | )      |      |         |       |       
|                                                 |                                                                                   |                                            |         |                    |        |      |         |        |       
|Net cash provided by investing activities        |                                                                                   |                                            | 4,872   |                    |        |      | 3,512   |       
|                                                 |                                                                                   |                                            |         |                    |        |      |         |       
|Cash flows from financing activities:            |                                                                                   |                                            |         |                    |        |      |         |       
|                                                 | Repayment of bank lines of credit and long-term debt                              |                                            |         | (1,006             | )      |      |         | (612   | )     
|                                                 | Proceeds from short-term borrowings                                               |                                            |         |                   |        |      |         | 781    |       
|                                                 | Repurchase of common stock                                                        |                                            |         |                   |        |      |         | (697   | )     
|                                                 | Proceeds from issuance of common stock for stock options                          |                                            |         | 1,851              |        |      |         | 569    |       
|                                                 |                                                                                   |                                            |         |                    |        |      |         |        |       
|Net cash provided by financing activities        |                                                                                   |                                            | 845     |                    |        |      | 41      |       
|                                                 |                                                                                   |                                            |         |                    |        |      |         |        |       
|Effect of exchange rate changes on cash          |                                                                                   |                                            | (179    | )                  |        |      | 940     |       
|                                                 |                                                                                   |                                            |         |                    |        |      |         |        |       
|Net increase in cash and cash equivalents        |                                                                                   |                                            | 14,752  |                    |        |      | 5,777   |       
|Cash and cash equivalents at beginning of period |                                                                                   |                                            | 155,274 |                    |        |      | 150,741 |       
|                                                 |                                                                                   |                                            |         |                    |        |      |         |        |       
|Cash and cash equivalents at end of period       |                                                                                   | $                                          | 170,026 |                    |        | $    | 156,518 |       
|                                                 |                                                                                   |                                            |         |                    |        |      |         |        |       

See the accompanying notes to these consolidated financial statements.

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Advanced Digital Information Corporation

Consolidated Statements of Changes in Shareholders Equity

Three months ended January 31, 2003

(In thousands)

|                                                         |                                                                       |                            |                                                                                             |   |              |   |          |   |               |   |               |       |       |   |        |     |             |     |         |   |       |   | 
|-------------------------------------------------------- | --------------------------------------------------------------------- | -------------------------- | ------------------------------------------------------------------------------------------- | - | ------------ | - | -------- | - | ------------- | - | ------------- | ----- | ----- | - | ------ | --- | ----------- | --- | ------- | - | ----- | - | 
|                                                         |                                                                       |                            |                                                                                             |   |              |   |          |   |               |   |               |       |       |   |        |     | Accumulated |     |         |   |      
|                                                         |                                                                       |                            |                                                                                             |   | Common Stock |   |          |   |               |   | Other         |       |       |   |       
|                                                         |                                                                       |                            |                                                                                             |   |              |   | Retained |   | Comprehensive |   |               |       |      
|                                                         |                                                                       |                            |                                                                                             |   | Shares       |   | Amount   |   | Earnings      |   | Income (Loss) |       | Total
|                                                         |                                                                       |                            |                                                                                             |   |              |   |          |   |               |   |               |       |      
|Balance at October 31, 2002                              |                                                                       |                            | 61,875                                                                                      |   |              | $ | 222,687  |   |               | $ | 108,159       |       |       | $ | (2,112 | )   |             | $   | 328,734 |  
|Shares repurchased                                       |                                                                       |                            | (113                                                                                        | ) |              |   | (697     | ) |               |   |              |       |       |   |       |     |             |     | (697    | )
|Exercise of stock options,
including tax benefit of $246 |                                                                       |                            | 168                                                                                         |   |              |   | 815      |   |               |   |              |       |       |   |       |     |             |     | 815     |  
|Comprehensive income:                                    |                                                                       |                            |                                                                                             |   |              |   |          |   |               |   |               |       |       |   |        |     |             |     |         |  
|                                                         | Net income                                                            |                            |                                                                                             |  |              |   |          |  |               |   |               | 1,686 |       |   |        |    |             |     |         |  |      
|                                                         | Change in unrealized
investment gains:                                |                            |                                                                                             |   |              |   |          |   |               |   |               |       |       |   |        |     |             |     |         |   |      
|                                                         |                                                                       |                            | Unrealized investment
gains, net of tax of $383                                             |   |              |  |          |   |               |  |               |       |       |  |        |     |             | 711 |         |   |       |  | 
|                                                         |                                                                       |                            | Reclassification
adjustment for investment
losses included in net
income, net of tax of $87 |   |              |  |          |   |               |  |               |       |       |  |        |     |             | 162 |         |   |       |  | 
|                                                         | Change in foreign currency
translation adjustment, net of
tax of $422 |                            |                                                                                             |  |              |   |          |  |               |   |               |      |       |   |        | 784 |             |     |         |  |      
|                                                         |                                                                       | Total comprehensive income |                                                                                             |   |             |   |          |   |              |   |               |       |      |   |        |     |            |     |         |   | 3,343 |  
|                                                         |                                                                       |                            |                                                                                             |   |              |   |          |   |               |   |               |       |       |   |        |     |             |     |         |  
|Balance at January 31, 2003                              |                                                                       |                            | 61,930                                                                                      |   |              | $ | 222,805  |   |               | $ | 109,845       |       |       | $ | (455   | )   |             | $   | 332,195 |  
|                                                         |                                                                       |                            |                                                                                             |   |              |   |          |   |               |   |               |       |       |   |        |     |             |     |         |  

See the accompanying notes to these consolidated financial statements.

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Advanced Digital Information Corporation

Notes to Interim Consolidated Financial Statements

January 31, 2003

Note 1. Basis of presentation

The accompanying consolidated financial statements are unaudited and
include the accounts of the Company and its subsidiaries. All significant
intercompany transactions, balances and profits have been eliminated in
consolidation. Certain prior period balances have been adjusted or
reclassified to conform to current period presentation. These
reclassifications have no effect on net income, shareholders equity or cash
flows as previously presented.

The accompanying consolidated financial statements are unaudited and
should be read in conjunction with the financial statements included in our
Annual Report on Form 10-K for the year ended October 31, 2002. The year-end
balance sheet data was derived from audited financial statements, but does not
include all disclosures required by generally accepted accounting principles.
In our opinion all normal recurring adjustments which are necessary for the
fair presentation of the results for the interim periods are reflected herein.
Operating results for the three-month period ended January 31, 2003 are not
necessarily indicative of results to be expected for a full year.

Note 2. Earnings per share

The following table sets forth the computation of basic and diluted net
income per share for the three months ended January 31, 2002 and 2003:

|                             |                                                                                                        |   |                                           |        |      |   |      |        | 
|---------------------------- | ------------------------------------------------------------------------------------------------------ | - | ----------------------------------------- | ------ | ---- | - | ---- | ------ | 
|                             |                                                                                                        |   | Three months ended                       
|                             |                                                                                                        |   | January 31,                              
|                             |                                                                                                        |   |                                          
|                             |                                                                                                        |   | 2002                                      |        | 2003
|                             |                                                                                                        |   |                                           |        |     
|                             |                                                                                                        |   | (In thousands, except for per share data)
|Numerator:                   |                                                                                                        |   |                                           |        |      |   |      |       
|                             | Net income                                                                                             |   | $                                         | 2,382  |      |   | $    | 1,686  | 
|                             |                                                                                                        |   |                                           |        |      |   |      |        | 
|Denominator:                 |                                                                                                        |   |                                           |        |      |   |      |       
|                             | Denominator for basic net income per share-
weighted average shares                                    |   |                                           | 62,079 |      |   |      | 61,874 | 
|                             | Dilutive potential common shares from team
member (employee) stock options                             |   |                                           | 2,020  |      |   |      | 817    | 
|                             |                                                                                                        |   |                                           |        |      |   |      |        | 
|                             | Denominator for diluted net income per share-
adjusted weighted average shares and assumed
conversions |   |                                           | 64,099 |      |   |      | 62,691 | 
|                             |                                                                                                        |   |                                           |        |      |   |      |        | 
|Basic net income per share   |                                                                                                        | $ | 0.04                                      |        |      | $ | 0.03 |       
|                             |                                                                                                        |   |                                           |        |      |   |      |        | 
|Diluted net income per share |                                                                                                        | $ | 0.04                                      |        |      | $ | 0.03 |       
|                             |                                                                                                        |   |                                           |        |      |   |      |        | 

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Advanced Digital Information Corporation

Notes to Interim Consolidated Financial Statements (Continued)

January 31, 2003

Note 3. Inventories

Inventories are comprised of the following:

|                                     |  |                |         |             |  |   |         |  
|------------------------------------ |  | -------------- | ------- | ----------- |  | - | ------- | -
|                                     |  | October 31,    |         | January 31,
|                                     |  | 2002           |         | 2003       
|                                     |  |                |         |            
|                                     |  | (In thousands)
|Finished goods                       |  | $              | 26,225  |             |  | $ | 27,415  |  
|Work-in-process                      |  |                | 140     |             |  |   | 392     |  
|Raw materials                        |  |                | 16,644  |             |  |   | 18,508  |  
|                                     |  |                |         |             |  |   |         |  
|                                     |  |                | 43,009  |             |  |   | 46,315  |  
|Allowance for inventory obsolescence |  |                | (10,713 | )           |  |   | (12,525 | )
|                                     |  |                |         |             |  |   |         |  
|                                     |  | $              | 32,296  |             |  | $ | 33,790  |  
|                                     |  |                |         |             |  |   |         |  

Note 4. Investments in marketable securities and other investments

At January 31, 2003, the cost basis of the marketable securities we held
was $34,196,000 and the fair value was $35,193,000. The difference between the
cost basis and fair value of $997,000, net of taxes of $349,000 is recorded as
an unrealized investment gain. At January 31, 2003, the fair value of
marketable securities comprised equity securities of $6,380,000 and debt
securities of $28,813,000. These debt securities consist of investment-grade
government and commercial securities purchased in accordance with our cash
management policy to generate a higher yield than cash equivalents. Consistent
with our investment policy, investment maturities do not exceed 24 months at
the date of purchase. The objectives of our cash management policy are safety
and preservation of funds, liquidity sufficient to meet cash flow requirements
and attainment of a market rate of return. During the three month periods
ended January 31, 2003 and 2002, we sold a portion of our marketable securities
and realized a loss of $63,000 and a gain of $1,672,000, respectively.

From time to time, we make other strategic investments that are accounted
for under the cost method. In November 2002, one of these investments was
converted to cash and marketable equity securities with a combined value of
$8,351,000, and we recorded a gain on securities transactions of $651,000. In
December 2002, we received additional shares of marketable equity securities
under an earnout provision and recorded an additional gain on securities
transactions of $124,000.

During the three month period ended January 31, 2002 we received cash of
$287,000 related to the sale of derivative financial instruments on certain
marketable equity securities held by us. We recorded a liability of $3,988,000
at January 31, 2002, which represented the fair market value of the derivative
financial instruments at that time. We recognized a gain on securities
transactions of $572,000 during the first quarter of fiscal 2002 to reflect the
change in the fair market value of the related liability during the quarter
plus the cash received on sales of derivatives during the period.

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Advanced Digital Information Corporation

Notes to Interim Consolidated Financial Statements (Continued)

January 31, 2003

Note 5. Intangible and other assets

On November 1, 2002, we adopted Statement of Financial Accounting
Standards No. 142, Goodwill and Other Intangible Assets which requires us to
discontinue amortization of goodwill. As required by SFAS 142, intangible
assets that do not meet the criteria for recognition apart from goodwill must
be reclassified. In applying these criteria, we transferred net assembled
workforce from intangible assets to goodwill in the first quarter of fiscal
2003. During the first quarter, we completed the assessment for impairment of
goodwill required upon implementation of SFAS 142 and concluded that goodwill
was not impaired. We are required to perform goodwill impairment tests on an
annual basis or when indicators of impairment exist. We plan to perform our
annual goodwill impairment test in the third quarter of each fiscal year,
including 2003. There can be no assurance that future goodwill impairment
tests will not result in a charge to earnings.

The following table presents net income and net income per share for the
three months ended January 31, 2002 and 2003 on a pro forma basis as if SFAS
142 had been adopted on November 1, 2001:

|                                                                               |             |   |                           |      |      |   |       |      | 
|------------------------------------------------------------------------------ | ----------- | - | ------------------------- | ---- | ---- | - | ----- | ---- | 
|                                                                               |             |   | Three months ended       
|                                                                               |             |   | January 31,              
|                                                                               |             |   |                          
|                                                                               |             |   | 2002                      |      | 2003
|                                                                               |             |   |                           |      |     
|                                                                               |             |   | (In thousands, except for
|                                                                               |             |   | per share data)          
|Net income, as reported                                                        |             | $ | 2,382                     |      |      | $ | 1,686 |     
|Add back: amortization of goodwill (including
assembled workforce), net of tax |             |   | 70                        |      |      |   |      |     
|                                                                               |             |   |                           |      |      |   |       |     
|Net income, as adjusted                                                        |             | $ | 2,452                     |      |      | $ | 1,686 |     
|                                                                               |             |   |                           |      |      |   |       |     
|Basic net income per share:                                                    |             |   |                           |      |      |   |       |     
|                                                                               | As reported |   | $                         | 0.04 |      |   | $     | 0.03 | 
|                                                                               |             |   |                           |      |      |   |       |     
|                                                                               | As adjusted |   | $                         | 0.04 |      |   | $     | 0.03 | 
|                                                                               |             |   |                           |      |      |   |       |     
|Diluted net income per share:                                                  |             |   |                           |      |      |   |       |     
|                                                                               | As reported |   | $                         | 0.04 |      |   | $     | 0.03 | 
|                                                                               |             |   |                           |      |      |   |       |     
|                                                                               | As adjusted |   | $                         | 0.04 |      |   | $     | 0.03 | 
|                                                                               |             |   |                           |      |      |   |       |     

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Advanced Digital Information Corporation

Notes to Interim Consolidated Financial Statements (Continued)

January 31, 2003

Intangible and other assets consists of the following:

|                       |  |                  |       |                  |  |                |        |              |  |              |       |            |  |   |       |                |  |   |        |   |  |   |       | 
|---------------------- |  | ---------------- | ----- | ---------------- |  | -------------- | ------ | ------------ |  | ------------ | ----- | ---------- |  | - | ----- | -------------- |  | - | ------ | - |  | - | ----- | 
|                       |  | October 31, 2002 |       | January 31, 2003
|                       |  |                  |       |                 
|                       |  |                  |       |                  |  | Accumulated    |        |              |  |              |       |            |  |   |       | Accumulated    |  |   |        |  
|                       |  | Gross amount     |       | amortization     |  | Net amount     |        | Gross amount |  | amortization |       | Net amount
|                       |  |                  |       |                  |  |                |        |              |  |              |       |           
|                       |  |                  |       |                  |  | (In thousands) |        |              |  |              |       |            |  |   |       | (In thousands) |  |   |        |  
|Developed technology   |  | $                | 980   |                  |  | $              | (925   | )            |  | $            | 55    |            |  | $ | 980   |                |  | $ | (980   | ) |  | $ |      | 
|Core technology        |  |                  | 3,804 |                  |  |                | (1,675 | )            |  |              | 2,129 |            |  |   | 3,804 |                |  |   | (1,811 | ) |  |   | 1,993 | 
|Assembled workforce    |  |                  | 147   |                  |  |                | (139   | )            |  |              | 8     |            |  |   |      |                |  |   |       |   |  |   |      | 
|Non-compete agreements |  |                  | 50    |                  |  |                | (12    | )            |  |              | 38    |            |  |   | 50    |                |  |   | (16    | ) |  |   | 34    | 
|Goodwill               |  |                  | 3,706 |                  |  |                | (1,118 | )            |  |              | 2,588 |            |  |   | 3,853 |                |  |   | (1,257 | ) |  |   | 2,596 | 
|Other assets           |  |                  | 67    |                  |  |                |       |              |  |              | 67    |            |  |   | 74    |                |  |   |       |   |  |   | 74    | 
|                       |  |                  |       |                  |  |                |        |              |  |              |       |            |  |   |       |                |  |   |        |   |  |   |       | 
|                       |  | $                | 8,754 |                  |  | $              | (3,869 | )            |  | $            | 4,885 |            |  | $ | 8,761 |                |  | $ | (4,064 | ) |  | $ | 4,697 | 
|                       |  |                  |       |                  |  |                |        |              |  |              |       |            |  |   |       |                |  |   |        |   |  |   |       | 

During the three months ended January 31, 2003, we recorded intangible
amortization expense of $195,000. Total expected future amortization related
to intangible assets is provided in the following table:

|                                   |  |                |     | 
|---------------------------------- |  | -------------- | --- | 
|                                   |  | Amortization  
|                                   |  |               
|                                   |  | (In thousands)
|Nine months ended October 31, 2003 |  | $              | 423 | 
|Fiscal year 2004                   |  | $              | 562 | 
|Fiscal year 2005                   |  | $              | 543 | 
|Fiscal year 2006                   |  | $              | 499 | 

Note 6. Guarantees

In November 2002, the FASB issued FASB Interpretation No. 45, Guarantors
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others. FIN 45 requires that a liability be
recorded in the guarantors balance sheet upon issuance of the guarantee. In
addition, FIN 45 requires disclosures about the guarantees that a company has
issued, including a rollforward of the companys product warranty liabilities.
We will apply the recognition provisions of FIN 45 prospectively to guarantees
issued after December 31, 2002. The disclosure provisions of FIN 45 are
effective for us during the first quarter of fiscal 2003 and are included
below. We do not expect the provisions of FIN 45 to have a significant impact
on our financial position or results of operations.

For our products, parts and labor are covered under warranty for periods
between three months and three years. A provision
for labor costs related to warranty expense is recorded when revenue is
recognized. We hold service parts for maintenance that are used to
service our warranties and extended service contracts. The cost of
these parts is amortized over their estimated useful lives, which
range from three to seven years. With respect to drives and tapes used in
our products but manufactured by a third party, we pass on to the customer the
warranty on such drives and tapes provided by the manufacturer.

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Advanced Digital Information Corporation

Notes to Interim Consolidated Financial Statements (Continued)

January 31, 2003

Changes in our accrued warranty balance for the three months ended January
31, 2003 is as follows:

|                               |  |   |        |  
|------------------------------ |  | - | ------ | -
|Balance at October 31, 2002    |  | $ | 4,225  |  
|Accruals for warranties issued |  |   | 1,584  |  
|Settlements during the period  |  |   | (1,023 | )
|                               |  |   |        |  
|Balance at January 31, 2003    |  | $ | 4,786  |  
|                               |  |   |        |  

Note 7. Recent accounting pronouncements

In December 2002, the FASB issued Statement of Financial Accounting
Standards No. 148, Accounting for Stock-Based Compensation  Transition and
Disclosure. SFAS 148 amends SFAS 123, Accounting for Stock-Based
Compensation, to provide alternative methods of transition for an entity that
voluntarily changes to the fair value based method of accounting for
stock-based compensation. It also amends the disclosure provisions of that
statement. The disclosure provisions of this statement are effective for
financial statements issued for fiscal periods beginning after December 15,
2002 and will become effective for ADIC commencing with the second quarter of
our 2003 fiscal year. We do not currently have plans to change to the fair
value method of accounting for our stock-based compensation, but we will
reassess our plans during the fourth quarter of fiscal 2003 to determine
whether we will change to the fair value method during fiscal 2004.

In November 2002, the EITF reached a consensus on Issue No. 00-21,
Revenue Arrangements with Multiple Deliverables. EITF 00-21 provides
guidance on how to account for arrangements that involve the delivery or
performance of multiple products, services or rights to use assets. The
provisions of EITF 00-21 will apply to revenue arrangements entered into in
fiscal periods beginning after June 15, 2003. We are currently evaluating the
impact EITF 00-21 will have, if any, on our financial position or results of
operations.

In January 2003, the FASB issued FASB Interpretation No. 46,
Consolidation of Variable Interest Entities. FIN 46 provides guidance on how
to identify a variable interest entity (VIE) and determine when the assets,
liabilities and results of operations of a VIE need to be included in a
companys financial statements. FIN 46 also requires additional disclosures by
primary beneficiaries and other significant variable interest holders in a VIE.
The provisions of FIN 46 are effective immediately for all VIEs created after
January 31, 2003. For VIEs created before February 1, 2003, the provisions of
FIN 46 must be adopted at the beginning of the first fiscal period beginning
after June 15, 2003. This accounting pronouncement is not expected to have a
significant impact on our financial position or results of operations.

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|        |  |                                                                                      
|------- |  | -------------------------------------------------------------------------------------
|Item 2. |  | Managements Discussion and Analysis of Financial Condition and
Results of Operations

The following discussion and analysis should be read in conjunction with
our financial statements and the information about our critical accounting
estimates included in our Annual Report on Form 10-K for the year ended October
31, 2002. This discussion contains certain forward-looking statements that
involve risks and uncertainties, such as statements of our plans, objectives,
expectations and intentions. Such risks are detailed in our Annual Report on
Form 10-K for the year ended October 31, 2002 and are incorporated herein by
reference. Our actual results could differ materially from those discussed
here. We undertake no obligation to publicly release any revisions to these
forward-looking statements that may be required to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

General

We provide hardware and software-based data storage solutions to the open
systems marketplace. Our storage solutions integrate into a wide range of
rapidly evolving network computing environments and are designed to enable
organizations to organize, protect and retrieve complex mission-critical data.
We design, manufacture, sell and support specialized data storage hardware and
software products and provide related services. Currently, we derive
substantially all of our revenue from the sale of storage libraries,
connectivity and management products and related services and support. We
distribute our products primarily through value-added resellers (VARs),
distributors and original equipment manufacturers (OEMs), and also sell
directly to certain end users.

Results of Operations

Net Sales.Net sales increased slightly during the first quarter of
fiscal 2003 to $97.1 million from $96.7 million in the comparable quarter of
fiscal 2002. Sales to branded customers increased $2.4 million or 5%,
primarily due to stronger sales of our enterprise-class library products.
Sales to OEM customers decreased $2.0 million or 4%. For the three months
ended January 31, 2003 and 2002, OEM sales comprised 48% and 50% of net sales,
respectively. Intelligent Storage solutions (ISS), which include elements of
our software and connectivity technology and are sold through both branded and
OEM sales channels, represented 41% of sales in the first quarter of fiscal
2003 compared to 22% of sales during the first quarter of fiscal 2002.

Gross Profit.Gross profit was $29.9 million or 31% of net sales for the
three months ended January 31, 2003 compared to $23.8 million or 25% of net
sales for the same period in fiscal 2002. The increase in gross profit is
primarily the result of the shift in our sales mix towards our enterprise-class
library products and an increase in other higher margin ISS related sales.
Additionally, OEM sales, which generally have lower margins for comparable
products, represented a slightly smaller percentage of our total sales during
the first quarter of fiscal 2003. We expect margins will continue to improve
as our product mix becomes more heavily weighted toward higher margin products
that include elements of our proprietary storage management software and
connectivity technology. However, this expected margin improvement is also
dependent on the competitive, economic and geopolitical environment, and
margins could be negatively impacted by adverse changes in any of these
factors.

Sales and Marketing Expenses.Sales and marketing expenses were $13.1
million or 14% of net sales for the three months ended January 31, 2003
compared to $10.9 million or 11% of net sales for the same period in fiscal
2002. Sales and marketing expenses have increased in both absolute dollars and
as a percentage of net sales due to continued efforts to expand our sales and
services channels to support new product offerings and improve market
penetration with our more complex enterprise-level products. We expect sales
and marketing expenditures to increase modestly during the balance of fiscal
2003.

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General and Administrative Expenses.General and administrative expenses
were $6.0 million or 6% of net sales for the three months ended January 31,
2003 compared to $5.4 million or 6% of net sales for the same period in fiscal
2002. General and administrative expenses have increased in absolute dollars
due to continued investment in our infrastructure, including our global
information system. We expect very modest growth in general and administrative
expenses during the remainder of fiscal 2003.

Research and Development Expenses.Research and development expenses were
$10.3 million or 11% of net sales for the first quarter of fiscal 2003 compared
to $6.8 million or 7% of net sales for the first quarter of fiscal 2002. The
increase reflects our strategy to maintain heavy investments in software and
connectivity product development and relates to added personnel resources and
additional spending related to new products. We believe that significant
investments in research and development are required to remain competitive and
to solidify our market position in intelligent storage solutions. We expect
moderate growth in research and development expenses during the remainder of
fiscal 2003 as we continue to invest in new product development.

Other Income.Other income primarily consists of interest income, gain on
securities transactions and foreign currency transaction gains (losses). Other
income was $2.2 million for the first quarter of fiscal 2003 compared to $2.9
million for the first quarter of fiscal 2002. Other income during the three
months ended January 31, 2003 includes a gain on securities transactions of
$712,000, primarily related to conversion of one of our investments in a
private company to cash and marketable equity securities. During the three
months ended January 31, 2002, other income included a $2.2 million gain on
securities transactions. Interest income was $651,000 and $1.0 million during
the first quarter of fiscal 2003 and 2002, respectively. The decrease in
interest income is the result of lower returns on cash and investment balances.
Foreign currency transaction gains were $962,000 during the first quarter of
fiscal 2003 compared to foreign currency transaction losses of $279,000 during
the first quarter of fiscal 2002. This change is the result of the
strengthening of the Euro during the quarter. Interest expense in both periods
primarily relates to interest on operating credit lines through two German
banks along with a loan payable to a German bank.

Provision for Income Taxes.For the three months ended January 31, 2003
and 2002, the provision for income taxes was $929,000 and $1.2 million,
respectively. Our effective income tax rate was 36% for the first quarter of
2003 as compared to 34% in the same period of fiscal 2002. The effective tax
rate includes tax expense for various federal, state and international
jurisdictions.

Liquidity and Capital Resources

Cash flows provided by operating activities were $1.3 million and $9.2
million for the three months ended January 31, 2003 and 2002, respectively.
During the first quarter of fiscal 2003, operating cash was primarily provided
by net income, depreciation and amortization and an increase in accrued
liabilities, which were offset by increases in accounts receivable and
inventories. During the first quarter of fiscal 2002, operating cash was
primarily provided by net income, depreciation and amortization and decreases
in inventories and income taxes receivable, which were offset by increases in
accounts receivable and service parts for maintenance. Accounts receivable
increased in both periods primarily due to increased sales. Inventories
increased during the first three months of fiscal 2003 as we launched both new
products and existing products into new channels.

Cash flows provided by investing activities were $3.5 million and $4.9
million for the first three months of fiscal 2003 and 2002, respectively. Cash
flows include proceeds from certain securities transactions of $7.9 million and
$12.0 million for first quarter 2003 and 2002, respectively. These proceeds
were partially offset by purchases of marketable securities of $1.2 million
during the first quarter of fiscal 2003 and a $400,000 investment in
non-marketable securities during the first quarter of

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fiscal 2002. Investments in property, plant and equipment were $3.1
million and $6.7 million during the first three months of fiscal 2003 and 2002,
respectively. Capital expenditures during the first quarter of fiscal 2003
were comprised primarily of computer hardware and software for our global
information technology infrastructure and tooling and equipment related to new
product introductions.

Cash flows provided by financing activities during the first three months
of fiscal 2003 were $41,000, compared to $845,000 in the first quarter of
fiscal 2002. We repurchased $697,000 of our common stock during the three
months ended January 31, 2003. During the first quarter of fiscal 2003 and
2002, we received proceeds from the exercise of stock options of $569,000 and
$1.9 million, respectively. Offsetting the above proceeds in both periods were
certain payments on bank lines of credit and long-term debt, which were
$612,000 and $1.0 million in the first quarter fiscal 2003 and 2002,
respectively. During the first quarter of fiscal 2003, we borrowed an
additional $781,000 from two German banks.

At January 31, 2003, our cash and cash equivalents totaled $156.5 million,
a $5.8 million increase from $150.7 million at October 31, 2002. Our cash
equivalents and marketable securities totaled $191.7 million and $182.8 million
at January 31, 2003 and October 31, 2002, respectively. Our working capital,
the difference between current assets and current liabilities, was $242.6
million and $231.7 million at January 31, 2003 and October 31, 2002,
respectively. The ratio of current assets to current liabilities was 4.3 to 1
at both January 31, 2003 and October 31, 2002.

We believe that our existing cash and cash equivalents, available bank
lines of credit, debt capacity and anticipated cash flow from our operating
activities will be sufficient to fund our working capital and capital
expenditure needs for at least the next 12 months. We will continue to
evaluate possible acquisitions of, or investments in businesses, products, or
technologies that we believe are strategic, which may require the use of cash.
In addition, we have made and expect to continue to make investments in
companies with whom we have identified potential synergies.

Recent Accounting Pronouncements

In December 2002, the FASB issued Statement of Financial Accounting
Standards No. 148, Accounting for Stock-Based Compensation  Transition and
Disclosure. SFAS 148 amends SFAS 123, Accounting for Stock-Based
Compensation, to provide alternative methods of transition for an entity that
voluntarily changes to the fair value based method of accounting for
stock-based compensation. It also amends the disclosure provisions of that
statement. The disclosure provisions of this statement are effective for
financial statements issued for fiscal periods beginning after December 15,
2002 and will become effective for ADIC commencing with the second quarter of
our 2003 fiscal year. We do not currently have plans to change to the fair
value method of accounting for our stock-based compensation, but we will
reassess our plans during the fourth quarter of fiscal 2003 to determine
whether we will change to the fair value method during fiscal 2004.

In November 2002, the EITF reached a consensus on Issue No. 00-21,
Revenue Arrangements with Multiple Deliverables. EITF 00-21 provides
guidance on how to account for arrangements that involve the delivery or
performance of multiple products, services or rights to use assets. The
provisions of EITF 00-21 will apply to revenue arrangements entered into in
fiscal periods beginning after June 15, 2003. We are currently evaluating the
impact EITF 00-21 will have, if any, on our financial position or results of
operations.

In January 2003, the FASB issued FASB Interpretation No. 46,
Consolidation of Variable Interest Entities. FIN 46 provides guidance on how
to identify a variable interest entity (VIE) and determine when the assets,
liabilities and results of operations of a VIE need to be included in a

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companys financial statements. FIN 46 also requires additional
disclosures by primary beneficiaries and other significant variable interest
holders in a VIE. The provisions of FIN 46 are effective immediately for all
VIEs created after January 31, 2003. For VIEs created before February 1, 2003,
the provisions of FIN 46 must be adopted at the beginning of the first fiscal
period beginning after June 15, 2003. This accounting pronouncement is not
expected to have a significant impact on our financial position or results of
operations.

Critical Accounting Estimates

The preparation of
our financial statements requires us to make estimates and judgments.
The critical accounting policies that affect our more significant
estimates and judgments are disclosed in our Annual Report on
Form 10-K for the year ended October 31, 2002. New critical
accounting policies are disclosed below.

As a result of adopting Statement of Financial Accounting Standards No.
142, Goodwill and Other Intangible Assets, on November 1, 2002, we
discontinued the amortization of goodwill. Instead, goodwill was reviewed for
impairment upon adoption of SFAS 142 and will be reviewed annually thereafter,
or more frequently when indicators of impairment are present. We did not
record an impairment charge based on this initial review. Other intangible
assets are carried and reported at acquisition cost, net of accumulated
amortization subsequent to acquisition. The acquisition cost is amortized over
the estimated useful lives of the assets, which range from two to ten years.
Intangible assets are reviewed for impairment whenever events or circumstances
indicate impairment might exist, or at least annually. The determination of
the net carrying value of goodwill and intangible assets and the extent to
which, if any, there is impairment are dependent on material estimates and
judgments on our part, including the useful life over which the intangible
assets are to be amortized, and the estimates of the value of future net cash
flows, which are based upon further estimates of future revenues, expenses and
operating margins.




Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to various market risks, including changes in foreign
currency rates and interest rates. We may enter into various derivative
transactions to manage certain of these exposures.

The assets and liabilities of our non-U.S. subsidiaries have functional
currencies other than the U.S. dollar and are translated into U.S. dollars at
exchange rates in effect at the balance sheet date. Income and expense items
are translated at the average exchange rates prevailing during the period. A
10% appreciation in the U.S. dollar would have resulted in an approximately
$2.1 million decrease in income before provision for income taxes during the
first three months of fiscal 2003. Such a change in income would have resulted
from applying a different exchange rate to translate and revalue the financial
statements of our non-U.S. subsidiaries.

At January 31, 2003, we had variable rate debt of approximately $1.6
million and fixed rate debt of $2.0 million, both of which were provided by two
German banks. The fair value of such debt approximates the carrying amount on
the consolidated balance sheet at January 31, 2003. We have entered into an
interest rate swap agreement on the variable rate debt, which fixes the
interest rate at 4.3% through November 2003. Interest on the fixed rate debt
ranges from 4.2% to 4.4%.




Item 4. Controls and Procedures

We maintain a set of disclosure controls and procedures and internal
controls designed to ensure that information required to be disclosed in
filings pursuant to the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commissions rules and forms.

Our chief executive officer and our chief financial officer have evaluated
our disclosure controls

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and procedures within 90 days before the filing of this quarterly report,
and they have determined that our disclosure controls and procedures are
effective.

Subsequent to our evaluation, there were no significant changes in our
internal controls or other factors that could significantly affect internal
controls, including any corrective actions with regard to significant
deficiencies and material weaknesses.

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PART II  OTHER INFORMATION




Item 1. Legal Proceedings

No material pending litigation.




Item 2. Changes in Securities

None.




Item 3. Defaults Upon Senior Securities

None.




Item 4. Submission of Matters to a Vote of Security Holders

None.




Item 5. Other Information

None.




Item 6. Exhibits and Reports on Form 8-K

Exhibit 99.1  Certification of Peter H. van Oppen, Chairman and Chief
Executive Officer of Advanced Digital Information Corporation, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.

Exhibit 99.2  Certification of Jon W. Gacek, Senior Vice President and
Chief Financial Officer of Advanced Digital Information Corporation, pursuant
to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.

No reports on Form 8-K were filed.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

|                      |  |                                                                                                             
|--------------------- |  | ------------------------------------------------------------------------------------------------------------
|                      |  | ADVANCED DIGITAL INFORMATION CORPORATION                                                                    
|                      |  |                                                                                                             
|Dated: March 17, 2003 |  | PETER H. VAN OPPEN                                                                                          
|                      |  |                                                                                                             
|                      |  | Peter H. van Oppen, Chairman
and Chief Executive Officer                                                    
|                      |  |                                                                                                             
|Dated: March 17, 2003 |  | JON W. GACEK                                                                                                
|                      |  |                                                                                                             
|                      |  | Jon W. Gacek, Senior Vice President
and Chief Financial Officer (Principal
Financial and Accounting Officer)

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CERTIFICATIONS

I, Peter H. van Oppen, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Advanced Digital
Information Corporation;

2.     Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.     The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:



| |                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report
is being prepared;



| |                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) evaluated the effectiveness of the registrants disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the Evaluation Date); and



| |                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

5.     The registrants other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrants auditors and the audit
committee of registrants board of directors (or persons performing the
equivalent function):



| |                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrants ability
to record, process, summarize and report financial data and have
identified for the registrants auditors any material weaknesses in
internal controls; and



| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants internal
controls; and

6.     The registrants other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

|                      |  |                                                         
|--------------------- |  | --------------------------------------------------------
|Dated: March 17, 2003 |  | PETER H. VAN OPPEN                                      
|                      |  |                                                         
|                      |  | Peter H. van Oppen, Chairman
and Chief Executive Officer

17



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##### Table of Contents



CERTIFICATIONS

I, Jon W. Gacek, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Advanced Digital
Information Corporation;

2.     Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.     The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:



| |                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report
is being prepared;



| |                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) evaluated the effectiveness of the registrants disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the Evaluation Date); and



| |                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

5.     The registrants other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrants auditors and the audit
committee of registrants board of directors (or persons performing the
equivalent function):



| |                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrants ability
to record, process, summarize and report financial data and have
identified for the registrants auditors any material weaknesses in
internal controls; and



| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants internal
controls; and

6.     The registrants other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

|                      |  |                                                                                                             
|--------------------- |  | ------------------------------------------------------------------------------------------------------------
|Dated: March 17, 2003 |  | JON W. GACEK                                                                                                
|                      |  |                                                                                                             
|                      |  | Jon W. Gacek, Senior Vice President
and Chief Financial Officer (Principal
Financial and Accounting Officer)

18