Quantum: Preliminary Fiscal 3Q14 Financial Results
Expected revenue of $145 million to $146 million
Quantum Corp. announced preliminary results for the third quarter of fiscal 2014
ended Dec. 31, 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 Oct. 23, 2013 earnings announcement.
The higher revenue reflects
strong sequential improvement in sales of Scalar
tape automation systems and DXi deduplication appliances and year-over-year
revenue growth of approximately 20% 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
"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, 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
organizational 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 June 30, 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."