Quantum Corporation expects Fiscal third quarter revenue and earnings results to exceed high end of guidance
Company Plans to Build on Efficiency Initiatives and Product/Technology Strengths to Capitalise on Growth Opportunities While Driving Increased Profitability and Cash Flow
London, 14 January 2014 – Quantum Corp. (NYSE:QTM) today announced preliminary results for the third quarter of fiscal 2014 ended 31 Dec 2013. The company expects to report revenue of approximately $145 million to $146 million, which would be above the high end of the guidance range provided during its 23 Oct. 2013 earnings announcement. The higher revenue reflects particularly strong sequential improvement in sales of Scalar tape automation systems and DXi® deduplication appliances and year-over-year revenue growth of approximately 20 percent from StorNext® scale-out storage solutions. In addition, Quantum expects non-GAAP net income of $6 million to $7 million, which is better than the high end of the previously announced guidance range.
“We’re pleased with the preliminary results we’ve seen for the December quarter, which demonstrate the strength of our product portfolio and expertise in helping customers rethink their storage strategies to serve their evolving business needs,” said Jon Gacek, president and CEO of Quantum. “Over the past year we’ve made good progress in expanding our solution offerings, improving our sales execution and efficiency, and reducing our cost structure. Our Q3 results reflect the benefits of the actions we’ve taken.”
This quarter Quantum will complete the change to a fully outsourced manufacturing model as previously announced last July, eliminating the remaining 120 positions related to this change. The company also plans to eliminate approximately 60 additional positions across various functions this quarter, reflecting reduced resource needs, better organisational efficiencies and a more focused investment strategy heading into the new fiscal year. As previously disclosed, the outsourcing will reduce overall expense by approximately $10 million annually, primarily reflected in improved non-GAAP gross margin. The additional staffing reductions this quarter are expected to generate $6 million to $8 million annually in further operating expense savings, or $1.5 million to $2.0 million lower quarterly expenses than the comparable period in the prior fiscal year. The changes will take full effect in the company’s fiscal quarter ending 30 June 2014.
“As we begin the new calendar year, we will increase our focus and investment in markets where the combination of changing customer needs and our product and technology strengths offer the greatest opportunities for growth and profitability,” continued Gacek. “In particular, we believe we have an advantage in scale-out shared storage, active archive and cloud-based data protection. We plan to build on our StorNext leadership in end-to-end content workflow, the value of Quantum’s Lattus™ Object Storage as a forever disk archive, our number one market share position in tape automation and our best-in-class DXi deduplication portfolio.”
Quantum will provide more details on its third quarter results and strategic focus in its earnings announcement later this month.
The company will also be presenting at Needham & Company’s 16th Annual Growth Conference on Wednesday, 15 Jan.
Contact details
Joanna Clark
quantum@rlyl.com
44 (0)20 7403 8878
rlyl.com
About Quantum
Quantum is a leading provider of specialised scale-out storage and data protection solutions for sharing, preserving and accessing digital assets over the entire data lifecycle. From small businesses to major enterprises, more than 100,000 customers have trusted Quantum to address their most demanding backup, archive and content workflow challenges. With Quantum, customers can Be Certain™ they have the end-to-end storage framework to maximise the value of their data by making it accessible whenever and wherever needed, retaining it longer and reducing total cost and complexity. See how at www.quantum.com/customerstories.
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