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Quantum corporation reports fiscal second quarter 2015 results

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Highlights:

  • Delivered Total Revenue of $135.1 Million, a 3% Increase Year-over-Year
  • Grew Scale-out Storage Revenue 58% Year-over-Year to $25.5 Million
  • Increased DXi Deduplication Revenue 11% Year-over-Year
  • Generated GAAP and Non-GAAP Operating Income of $3.8 Million and $9.4 Million, Respectively
  • Produced GAAP and Non-GAAP Net Income of $1.2 Million and $6.8 Million, Respectively
  • Raises Fiscal Year Net Income Guidance

London, UK — 30 October 2014 — Quantum Corp. (NYSE: QTM) today reported results for the fiscal second quarter 2015 ended 30 September 2014.

Fiscal Second Quarter 2015 Results

(Unless otherwise noted, all comparisons are relative to the fiscal second quarter 2014.)

  • Total revenue was $135.1 million, an increase of 3 percent.
  • Total branded revenue grew to $107.5 million, a 7 percent increase.
  • Scale-out storage and related service revenue grew 58 percent to a record $25.5 million, reflecting increasing demand for StorNext®5 high-performance shared storage and Lattus extended online storage solutions.
  • DXi®backup and deduplication appliance revenue increased 11 percent, driven by the strong performance of Quantum’s new DXi6900 and DXi4700 platforms.
  • GAAP operating income was $3.8 million, up from a GAAP operating loss of $5.0 million.
  • GAAP net income was $1.2 million, or less than $0.01 per diluted share, up from a GAAP net loss of $7.9 million, or $0.03 per diluted share.
  • Non-GAAP operating income increased to $9.4 million, from $1.0 million.
  • Non-GAAP net income improved to $6.8 million, or $0.03 per diluted share, up from a non-GAAP net loss of $1.9 million, or $0.01 per diluted share.
  • Cash generated from operations was $2.3 million, and Quantum ended the quarter with nearly $110 million in total cash and cash equivalents.

“Our positive second quarter results reflect the improvements we’ve made in our financial model and the increased leverage it provides as we capitalise on the market momentum we’re seeing across our business,” said Jon Gacek, President and CEO of Quantum. “In scale-out storage, we are driving significant growth through our unique combination of industry-leading performance and policy-driven tiering software, which is ideally suited to meeting customers’ evolving workflow needs. In data protection, we are taking advantage of growth and profit opportunities with a more efficient, integrated solutions approach that leverages our best-in-class disk and tape technologies to help organisations meet new backup and archive requirements.

“As we begin the second half of the fiscal year, we are well-positioned to build on this market momentum and the power of our scale-out storage and data protection portfolios to deliver greater growth, profit and shareholder value.”

Fiscal 2015 Updated Outlook

Reflecting its strong performance over the last two quarters and increasing market momentum, Quantum has raised the lower end of its revenue guidance for the full fiscal year and increased its net income and earnings per share guidance. The company now expects:

  • Revenue of approximately $545 million to $550 million.
  • GAAP net income of $8.9 million to $9.9 million, or $0.03-$0.04 per diluted share.
  • Non-GAAP net income of $24 million to $25 million, or $0.08-$0.09 per diluted share.

Fiscal Third Quarter 2015 Outlook

For the fiscal third quarter, Quantum expects:

  • Revenue of approximately $145 million to $150 million.
  • GAAP net income of $7.9 million to $8.9 million, or $0.03 per diluted share.
  • Non-GAAP net income of $11 million to $12 million, or $0.04 per diluted share.

Fiscal Second Quarter 2015 Business Highlights

  • Quantum acquired Symform’s cloud storage services platform and development team, gaining well-proven technology and expertise that the company plans to leverage in both scale-out storage and data protection. Used by 45,000 individuals and small businesses in 170 countries, Symform’s extensible cloud service has petabytes of storage and billions of data objects under management in a broad range of use cases. It offers a wide variety of options for integrating customer data into the cloud — including file sync and share, file backup and archive and system replication — with a well-known focus on extremely simple deployment and ease of use.
  • Quantum announced StorNext Pro™ Workgroup, a new easy-to-deploy, high-performance and high-capacity content workflow solution for postproduction and broadcast professionals. This integrated solution supports ingest, production, review and delivery, along with different options for petascale content storage and access at any stage of the workflow — all in one system. By choosing StorNext Pro Workgroup with Quantum’s Lattus™ object storage-based system, users can extend their online collaboration by seamlessly shifting non-real-time workflow operations to Lattus — a fully protected, infinitely scalable storage infrastructure — with no negative impact on performance.
  • Quantum’s new DXi6900 enterprise backup and deduplication appliance, which became generally available during the quarter, quickly gained market traction, with wins of more than $200,000 each at a range of customers, including a multinational biopharmaceutical company, a major insurance provider in Asia and a large county health network. In addition, Quantum continued to see strong adoption of its DXi4700 appliance, which was introduced earlier this year. DXi4700 revenue increased nearly 60 percent sequentially, and approximately 45 percent of sales were to new Quantum customers.
  • TVBEurope honored Quantum’s StorNext Pro Solutions with StorNext Connect™ as a Best of Show Award winner at IBC2014. The awards recognise the best technology, equipment and companies serving the broadcast industry. In the case of Quantum, the award reflects the many benefits of easy-to-deploy, high-performance StorNext Pro storage systems for today’s complex workflow environments.

Conference call and audio webcast notification

Quantum will hold a conference call today, 29 October  2014, at 2:00 p.m. PDT to discuss its fiscal second quarter results. Press and industry analysts are invited to attend in listen-only mode. Dial-in number: 719-457-2085, conference ID: 5622078. Quantum will provide a live audio webcast of the conference call beginning today, 29 October 2014, at 2:00 p.m. PDT. Site for the webcast and related information: www.quantum.com/investors.

Following completion of the call, a recorded replay of the webcast will be available at www.quantum.com/investors. For those without access to the Internet, a replay of the call will be available beginning at 5:00 p.m. PDT on 29 October 2014 through 3 November 2014 at 5:00 p.m. PST. To listen to the telephonic replay, call 719-457-0820, replay passcode: 5622078.

Contact details

Joanna Clark

quantum@rlyl.com

44 (0)20 7403 8878

www.rlyl.com 

About Quantum

Quantum is a leading expert in scale-out storage, archive and data protection, providing solutions for capturing, sharing and preserving 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 data workflow challenges. With Quantum, customers can Be Certain™ they have the end-to-end storage foundation to maximise the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. See how at www.quantum.com/customerstories.

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