Click here to close now.

SYS-CON MEDIA Authors: Jayaram Krishnaswamy, Robin Kent, Pat Romanski, Jason Bloomberg, Lori MacVittie

News Feed Item

Quantum Corporation Reports Fiscal Third Quarter Results

SAN JOSE, CA -- (Marketwired) -- 01/29/14 -- Quantum Corp. (NYSE: QTM)

Highlights:

  • Total revenue of $146 million, up 11% sequentially
  • Sequential increase in branded tape automation and DXi revenue of 37% and 32%, respectively
  • 20% year-over-year growth in StorNext and related service revenue, driven by near doubling of North America sales
  • Year-over-year improvement in GAAP and non-GAAP net income of 70% and 27%, respectively, on 8% revenue decline

Quantum Corp. (NYSE: QTM) today reported results for the third quarter of fiscal 2014, ended Dec. 31, 2013. Revenue for the quarter was $145.9 million, down 8 percent from the third quarter of fiscal 2013, primarily due to lower tape automation revenue and a decline in DXi® sales from the record DXi quarter a year earlier. On a sequential basis, total revenue was up 11 percent and, as previously announced, above the high end of the guidance range provided in the company's Oct. 23, 2013 earnings announcement. Product highlights included growth in StorNext® and related service revenue of 20 percent year-over-year and 5 percent over the prior quarter, as well as sequential increases in branded Scalar® tape automation and DXi sales of 37 percent and 32 percent, respectively.

On a GAAP basis, Quantum reported breakeven operating income for the quarter, better than the $5.7 million operating loss a year earlier, and had a net loss of $2.4 million, or $0.01 per diluted share, compared to a net loss of $8.2 million in the prior year, a 70 percent improvement. On a non-GAAP basis, the company generated $8.6 million of operating income, up $1.2 million year-over-year. Finally, Quantum reported non-GAAP net income of $6.2 million, or $0.02 per diluted share, approximately $1.3 million, or 27 percent, higher than a year earlier. The operating and net income results were better than the high end of the third quarter guidance given in October.

"Our December quarter results reflect our focus on driving increased profitability and cash flow while capitalizing on revenue opportunities," said Jon Gacek, president and CEO of Quantum. "We reduced our GAAP operating expenses by 17 percent year-over-year -- and 12 percent on a non-GAAP basis -- improving our bottom-line results and helping us end the quarter with our highest cash balance in three years. At the same time we continued to increase our StorNext revenue, with particularly strong year-over-year growth driven by a near doubling of sales in North America, and significantly improved our DXi and tape automation revenue performance over the prior quarter. Moving forward, we will maintain a balanced approach between growth and profit, building on our expanding product portfolio and market reach and the actions we've taken to reduce our cost structure."

Quantum generated $7.3 million in cash from operations in the quarter, ending the quarter with $82.8 million in total cash and cash equivalents.

Outlook

For the fourth quarter of fiscal 2014, Quantum expects:

  • Revenue of approximately $125 million to $130 million.
  • GAAP gross margin of 42 to 43 percent and non-GAAP gross margin of 43 to 44 percent.
  • GAAP operating expenses of $60 million to $61 million and non-GAAP operating expenses of $55 million to $56 million.
  • Interest expense of $2.5 million and taxes of $500,000.

The company noted that its fourth quarter operating expense guidance is $10 million to $11 million lower than actual operating expenses on a GAAP basis in the comparable quarter a year ago and $7 million to $8 million lower on a non-GAAP basis. Quantum also reiterated that it expects approximately $16 million to $18 million of additional annual expense savings from the outsourcing of manufacturing operations and staffing reductions announced earlier this month to be reflected in the company's results beginning in the fiscal first quarter of 2015 (June 2014 quarter). The company will provide guidance for fiscal 2015 when it reports its fourth quarter results.

Business Highlights

Key business highlights for the December quarter include the following:

  • Based on the integration of the company's Lattus™ Object Storage with Rocket Arkivio data archiving software, Quantum announced a new solution to reduce primary storage and backup costs by archiving static, unstructured data. Customers using the combined solution can save 30 percent or more in annual storage expenses and, in many cases, pay back their investment within a year.
  • The company introduced a new program enabling managed service providers (MSPs) and value added resellers (VARs) to expand their businesses with a cloud backup service powered by Quantum's DXi virtual deduplication appliances and vmPRO™ backup software. Through unique capacity-based subscription pricing, the program allows MSPs and VARs to brand, market and sell cloud backup-as-a-service offerings that scale as their revenues grow, thereby reducing the need for large up-front capital expenditures on hardware.
  • Quantum continued to receive industry accolades, reinforcing the compelling benefits and overall value it provides to customers and partners. The company and its Lattus Object Storage solution were named as finalists for 2014 Storage Visions Awards, which honor excellence and innovation in media and entertainment technology. The Lattus solution also received honorable mention in the Tiered Storage Product of the Year category at the 2013 Storage Virtualization Cloud Awards. At these same awards, the Quantum Alliance reseller program was also selected as "Vendor's Reseller Channel Program of the Year."

Conference Call and Audio Webcast Notification
Quantum will hold a conference call today, Jan. 29, 2014, at 2:00 p.m. PST, to discuss its fiscal third quarter results. Press and industry analysts are invited to attend in listen-only mode. Dial-in number: (480) 629-9819 (U.S. & International). Quantum will provide a live audio webcast of the conference call beginning today, Jan. 29, 2014, at 2:00 p.m. PST. Site for the webcast and related information: www.quantum.com/investors.

About Quantum
Quantum is a leading expert in end-to-end scale-out storage and data protection, providing solutions for sharing, archiving 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 content workflow challenges. With Quantum, customers can Be Certain™ they have a comprehensive storage foundation to maximize the value of their data, making it accessible whenever and wherever needed, offering indefinite retention and reducing total cost and complexity. See how at www.quantum.com/customerstories.

Quantum, the Quantum logo, Be Certain, DXi, StorNext, Scalar, Lattus and vmPRO are either registered trademarks or trademarks of Quantum Corporation and its affiliates in the United States and/or other countries. All other trademarks are the property of their respective owners.

"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, without limitation, our statements regarding our priorities and focuses for the fourth quarter of our fiscal year, that we will maintain our balanced approach to driving increased profit and cash flow while pursuing revenue growth and all of our statements under the "Outlook" section are forward-looking statements within the meaning of the Safe Harbor. All forward-looking statements in this press release are based on information available to Quantum on the date hereof. These statements involve known and unknown risks, uncertainties and other factors that may cause Quantum's actual results to differ materially from those implied by the forward-looking statement. More detailed information about these risk factors, and additional risk factors are set forth in Quantum's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Risk Factors" in Quantum's Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 7, 2013 and in Quantum's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 12, 2013. Quantum expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

Quantum believes that the non-GAAP financial measures disclosed above provide useful and supplemental information to investors regarding its quarterly financial performance. Quantum management uses these non-GAAP financial measures internally to understand, manage and evaluate the company's business results and make operating decisions. For instance, Quantum management often makes decisions regarding staffing, future management priorities and how the company will direct future operating expenses on the basis of non-GAAP financial measures. In addition, compensation of our employees is based in part on the performance of our business based on non-GAAP operating income.

The non-GAAP financial measures used in this press release exclude the impact of amortization of intangibles, share-based compensation, restructuring charges and outsourcing transition costs for the following reasons:

Amortization of Intangible Assets

This includes acquired intangibles such as purchased technology and customer relationships in connection with prior acquisitions. These expenses are not factored into management's evaluation of potential acquisitions or Quantum's performance after completion of the acquisitions because they are not related to Quantum's core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related charges from non-GAAP measures provides investors with a basis to compare Quantum against the performance of other companies without the variability caused by purchase accounting.

Share-Based Compensation Expense

Share-based compensation expense relates primarily to equity awards such as stock options and restricted stock units. Share-based compensation is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond Quantum's control. As a result, management excludes this item from Quantum's internal operating forecasts and models. Management believes that non-GAAP measures adjusted for share-based compensation provide investors with a basis to measure Quantum's core performance against the performance of other companies without the variability created by share-based compensation as a result of the variety of equity awards used by other companies and the varying valuation methodologies and assumptions used.

Restructuring Charges

Restructuring charges primarily relate to expenses associated with changes to Quantum's operating structure. Restructuring charges are excluded from non-GAAP financial measures because they are not considered core operating activities. Although Quantum has engaged in various restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. Management believes that it is appropriate to exclude restructuring charges from Quantum's non-GAAP financial measures, as it enhances the ability of investors to compare Quantum's period-over-period operating results from continuing operations.

Outsourcing Transition Costs

Outsourcing transition costs are expenses attributable to transitioning our manufacturing to an outsourced model. These costs are excluded from non-GAAP financial measures because they are not considered core operating activities and management believes that it is appropriate to exclude these costs in order to provide investors the ability to compare Quantum's period-over-period operating results from continuing operations.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material impact on the company's reported financial results and, therefore, should not be relied upon as the sole financial measures to evaluate the company. The non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, GAAP financial measures. Investors are encouraged to review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

Note 1

In the first quarter of fiscal year 2014, Quantum identified an error related to the accounting for certain allowances for estimated future price adjustments to customers which impacted prior reporting periods. As a result, the company's financial statements for the third quarter and first nine months of fiscal 2013 have been revised. For additional information, refer to our Form 10-Q filed with the Securities and Exchange Commission on November 12, 2013.



                            QUANTUM CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share amounts)
                                (Unaudited)

                         Three Months Ended           Nine Months Ended
                     --------------------------  --------------------------
                     December 31,  December 31,  December 31,  December 31,
                         2013          2012          2013          2012
                     ------------  ------------  ------------  ------------
                                     (Revised)                   (Revised)
                                      Note 1                      Note 1
Revenue:
 Product             $     98,348  $    112,490  $    269,024  $    306,316
 Service                   36,926        35,340       109,612       107,138
 Royalty                   10,656        11,538        46,693        34,081
                     ------------  ------------  ------------  ------------
  Total revenue           145,930       159,368       425,329       447,535
Cost of revenue:
 Product                   64,502        72,007       181,167       204,641
 Service                   19,706        19,360        56,053        59,896
 Restructuring
  charges                     288            --           377            --
                     ------------  ------------  ------------  ------------
  Total cost of
   revenue                 84,496        91,367       237,597       264,537
                     ------------  ------------  ------------  ------------
   Gross margin            61,434        68,001       187,732       182,998

 Operating expenses:
  Research and
   development             16,010        18,615        49,063        56,639
  Sales and marketing      29,424        33,588        89,577       102,473
  General and
   administrative          14,279        14,851        43,789        46,910
  Restructuring
   charges                  1,758         6,602         4,525         6,602
                     ------------  ------------  ------------  ------------
 Total operating
  expenses                 61,471        73,656       186,954       212,624
                     ------------  ------------  ------------  ------------
    Income (loss)
     from operations          (37)       (5,655)          778       (29,626)

 Other income and
  expense                     370            60           791          (388)
 Interest expense          (2,440)       (2,230)       (7,319)       (5,896)
                     ------------  ------------  ------------  ------------
    Loss before
     income taxes          (2,107)       (7,825)       (5,750)      (35,910)
 Income tax provision         308           348         1,232         1,217
                     ------------  ------------  ------------  ------------
    Net loss         $     (2,415) $     (8,173) $     (6,982) $    (37,127)
                     ============  ============  ============  ============


 Basic and diluted
  net loss per share:$      (0.01) $      (0.04) $      (0.03) $      (0.16)

 Weighted average
  basic and diluted
  shares:                 248,135       240,786       246,183       239,099

----------------------------------------------------------------------------

 Included in the
  above Statements of
  Operations:
   Restructuring
    charges related
    to cost of
    revenue          $        288  $         --  $        377  $         --
   Restructuring
    charges related
    to operating
    expense                 1,758         6,602         4,525         6,602
                     ------------  ------------  ------------  ------------
                            2,046         6,602         4,902         6,602
 Amortization of
  intangibles:
   Cost of revenue            368           911         1,104         3,407
   Sales and
    marketing               1,856         1,856         5,569         7,668
                     ------------  ------------  ------------  ------------
                            2,224         2,767         6,673        11,075
 Share-based
  compensation:
   Cost of revenue            509           626         1,560         1,839
   Research and
    development               862           925         2,638         2,772
   Sales and
    marketing                 994         1,273         3,148         3,603
   General and
    administrative          1,056           892         2,922         3,515
                     ------------  ------------  ------------  ------------
                            3,421         3,716        10,268        11,729
 Outsourcing
  Transition Costs:
   Cost of revenue            952            --           952            --
                     ------------  ------------  ------------  ------------
                              952            --           952            --

----------------------------------------------------------------------------

Note 1 is presented above, before the Condensed Consolidated Statements of
Operations.





                             QUANTUM CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                 (Unaudited)

                                                  December 31,    March 31,
                                                      2013          2013*
                                                 -------------  -------------
                                                                  (Revised)
                                                                    Note 1
                     Assets
Current assets:
  Cash and cash equivalents                      $      80,115  $      68,976
  Restricted cash                                        2,652          3,023
  Accounts receivable                                  105,121         97,546
  Manufacturing inventories                             43,621         53,075
  Service parts inventories                             27,743         35,368
  Other current assets                                  11,063         11,831
                                                 -------------  -------------
    Total current assets                               270,315        269,819

Long-term assets:
  Property and equipment                                18,457         21,456
  Intangible assets                                      6,140         12,813
  Goodwill                                              55,613         55,613
  Other long-term assets                                 9,749          9,892
                                                 -------------  -------------
    Total long-term assets                              89,959         99,774

                                                 -------------  -------------
                                                 $     360,274  $     369,593
                                                 =============  =============

      Liabilities and Stockholders' Deficit
Current liabilities:
  Accounts payable                               $      38,994  $      47,634
  Accrued warranty                                       6,127          7,520
  Deferred revenue, current                             88,968         91,108
  Accrued restructuring charges, current                 3,554          3,021
  Accrued compensation                                  29,338         30,964
  Other accrued liabilities                             13,580         14,503
                                                 -------------  -------------
    Total current liabilities                          180,561        194,750

Long-term liabilities:
    Deferred revenue, long-term                         39,350         38,393
    Convertible subordinated debt                      205,000        205,000
    Other long-term liabilities                         14,992         15,232
                                                 -------------  -------------
      Total long-term liabilities                      259,342        258,625

    Stockholders' deficit                              (79,629)       (83,782)

                                                 -------------  -------------
                                                 $     360,274  $     369,593
                                                 =============  =============

* Derived from the March 31, 2013 audited Consolidated Financial Statements.
Note 1 is presented above, before the Condensed Consolidated Statements of
Operations.



                            QUANTUM CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                (Unaudited)

                                                      Nine Months Ended
                                                 --------------------------
                                                 December 31,  December 31,
                                                     2013          2012
                                                 ------------  ------------
                                                                 (Revised)
                                                                  Note 1
Cash flows from operating activities:
  Net loss                                       $     (6,982) $    (37,127)
  Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:
    Depreciation                                        8,217         9,283
    Amortization                                        7,898        12,013
    Service parts lower of cost or market
     adjustment                                         8,715         7,026
    Deferred income taxes                                  86           231
    Share-based compensation                           10,268        11,729
    Changes in assets and liabilities:
      Accounts receivable                              (7,575)       (5,074)
      Manufacturing inventories                         5,372         1,502
      Service parts inventories                         2,993         2,857
      Accounts payable                                 (8,672)       (9,748)
      Accrued warranty                                 (1,393)          160
      Deferred revenue                                 (1,182)       (4,650)
      Accrued restructuring charges                       309         3,184
      Accrued compensation                             (1,786)         (538)
      Other assets and liabilities                       (732)        1,020
                                                 ------------  ------------
Net cash provided by (used in) operating
 activities                                            15,536        (8,132)

Cash flows from investing activities:
  Purchases of property and equipment                  (5,026)       (9,389)
  Decrease in restricted cash                             517           691
  Purchases of other investments                         (534)       (2,169)
  Return of principal from other investments                -           208
                                                 ------------  ------------
Net cash used in investing activities                  (5,043)      (10,659)

Cash flows from financing activities:
  Repayments of long-term debt                             --       (49,495)
  Borrowings of convertible subordinated debt,
   net                                                     --        67,701
  Payment of taxes due upon vesting of
   restricted stock                                    (1,807)       (1,926)
  Proceeds from issuance of common stock                2,431         2,604
                                                 ------------  ------------
Net cash provided by financing activities                 624        18,884

Effect of exchange rate changes on cash and cash
 equivalents                                               22           (14)

Net increase in cash and cash equivalents              11,139            79
Cash and cash equivalents at beginning of period       68,976        51,261
                                                 ------------  ------------
Cash and cash equivalents at end of period       $     80,115  $     51,340
                                                 ============  ============


Note 1 is presented above, before the Condensed Consolidated Statements of
Operations.



                             QUANTUM CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                 (Unaudited)

                                                  December 31,    March 31,
                                                      2013          2013*
                                                 -------------  -------------
                                                                  (Revised)
                                                                    Note 1
                     Assets
Current assets:
  Cash and cash equivalents                      $      80,115  $      68,976
  Restricted cash                                        2,652          3,023
  Accounts receivable                                  105,121         97,546
  Manufacturing inventories                             43,621         53,075
  Service parts inventories                             27,743         35,368
  Other current assets                                  11,063         11,831
                                                 -------------  -------------
    Total current assets                               270,315        269,819

Long-term assets:
  Property and equipment                                18,457         21,456
  Intangible assets                                      6,140         12,813
  Goodwill                                              55,613         55,613
  Other long-term assets                                 9,749          9,892
                                                 -------------  -------------
    Total long-term assets                              89,959         99,774

                                                 -------------  -------------
                                                 $     360,274  $     369,593
                                                 =============  =============

      Liabilities and Stockholders' Deficit
Current liabilities:
  Accounts payable                               $      38,994  $      47,634
  Accrued warranty                                       6,127          7,520
  Deferred revenue, current                             88,968         91,108
  Accrued restructuring charges, current                 3,554          3,021
  Accrued compensation                                  29,338         30,964
  Other accrued liabilities                             13,580         14,503
                                                 -------------  -------------
    Total current liabilities                          180,561        194,750

Long-term liabilities:
    Deferred revenue, long-term                         39,350         38,393
    Convertible subordinated debt                      205,000        205,000
    Other long-term liabilities                         14,992         15,232
                                                 -------------  -------------
      Total long-term liabilities                      259,342        258,625

    Stockholders' deficit                              (79,629)       (83,782)

                                                 -------------  -------------
                                                 $     360,274  $     369,593
                                                 =============  =============

* Derived from the March 31, 2013 audited Consolidated Financial Statements.
Note 1 is presented above, before the Condensed Consolidated Statements of
Operations.



                            QUANTUM CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                (Unaudited)

                                                      Nine Months Ended
                                                 --------------------------
                                                 December 31,  December 31,
                                                     2013          2012
                                                 ------------  ------------
                                                                 (Revised)
                                                                  Note 1
Cash flows from operating activities:
  Net loss                                       $     (6,982) $    (37,127)
  Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:
    Depreciation                                        8,217         9,283
    Amortization                                        7,898        12,013
    Service parts lower of cost or market
     adjustment                                         8,715         7,026
    Deferred income taxes                                  86           231
    Share-based compensation                           10,268        11,729
    Changes in assets and liabilities:
      Accounts receivable                              (7,575)       (5,074)
      Manufacturing inventories                         5,372         1,502
      Service parts inventories                         2,993         2,857
      Accounts payable                                 (8,672)       (9,748)
      Accrued warranty                                 (1,393)          160
      Deferred revenue                                 (1,182)       (4,650)
      Accrued restructuring charges                       309         3,184
      Accrued compensation                             (1,786)         (538)
      Other assets and liabilities                       (732)        1,020
                                                 ------------  ------------
Net cash provided by (used in) operating
 activities                                            15,536        (8,132)

Cash flows from investing activities:
  Purchases of property and equipment                  (5,026)       (9,389)
  Decrease in restricted cash                             517           691
  Purchases of other investments                         (534)       (2,169)
  Return of principal from other investments                -           208
                                                 ------------  ------------
Net cash used in investing activities                  (5,043)      (10,659)

Cash flows from financing activities:
  Repayments of long-term debt                             --       (49,495)
  Borrowings of convertible subordinated debt,
   net                                                     --        67,701
  Payment of taxes due upon vesting of
   restricted stock                                    (1,807)       (1,926)
  Proceeds from issuance of common stock                2,431         2,604
                                                 ------------  ------------
Net cash provided by financing activities                 624        18,884

Effect of exchange rate changes on cash and cash
 equivalents                                               22           (14)

Net increase in cash and cash equivalents              11,139            79
Cash and cash equivalents at beginning of period       68,976        51,261
                                                 ------------  ------------
Cash and cash equivalents at end of period       $     80,115  $     51,340
                                                 ============  ============


Note 1 is presented above, before the Condensed Consolidated Statements of
Operations.



                             QUANTUM CORPORATION
                       GAAP TO NON-GAAP RECONCILIATION
                  (In thousands, except per share amounts)
                                 (Unaudited)


                                      Three Months Ended December 31, 2013
                                  ------------------------------------------
                                                                   Income
                                              Gross                (Loss)
                                    Gross    Margin   Operating     From
                                    Margin    Rate     Expenses  Operations
                                  --------- --------  ---------  ----------
GAAP                              $  61,434     42.1% $  61,471  $      (37)
Non-GAAP Reconciling Items:
  Amortization of intangibles           368              (1,856)      2,224
  Share-based compensation              509              (2,912)      3,421
  Restructuring charges                 288              (1,758)      2,046
  Outsouring transition costs           952                   -         952
                                  ---------           ---------  ----------
Non-GAAP                          $  63,551     43.5% $  54,945  $    8,606



                                  Three Months Ended December 31,
                                               2013
                                 --------------------------------
                                             Per Share  Per Share
                                                Net        Net
                                     Net       Income     Income
                                    Income    (Loss),    (Loss),
                                    (Loss)     Basic     Diluted
                                  ---------  ---------  ---------
GAAP                              $  (2,415) $   (0.01) $   (0.01)
Non-GAAP Reconciling Items:
  Amortization of intangibles         2,224
  Share-based compensation            3,421
  Restructuring charges               2,046
  Outsouring transition costs           952
                                  ---------
Non-GAAP                          $   6,228  $    0.02  $  0.02**

  Computation of basic and
   diluted net income (loss) per
   share:                                       GAAP     Non-GAAP
                                             ---------  ---------
    Net income (loss)                        $  (2,415) $   6,228
      Interest on dilutive
       convertible notes                             -        788
                                             ---------  ---------
    Income (loss) for purposes of
     computing income (loss) per
     diluted share                           $  (2,415) $   7,016
                                             =========  =========

  Weighted average shares:
    Basic                                      248,135    248,135
      Dilutive shares from stock
       plans                                         -      1,952
      Dilutive shares from
       convertible notes                             -     42,502
                                             ---------  ---------
    Diluted                                    248,135    292,589



                                       Nine Months Ended December 31, 2013
                                   -----------------------------------------
                                               Gross                Income
                                     Gross    Margin   Operating     From
                                     Margin    Rate     Expenses  Operations
                                   --------- --------  ---------  ----------
GAAP                               $ 187,732     44.1%   186,954         778
Non-GAAP Reconciling Items:
  Amortization of intangibles          1,104              (5,569)      6,673
  Share-based compensation             1,560              (8,708)     10,268
  Restructuring charges                  377              (4,525)      4,902
  Outsourcing transition costs           952                   -         952
                                   ---------           ---------  ----------
Non-GAAP                           $ 191,725     45.1% $ 168,152  $   23,573


                                    Nine Months Ended December 31,
                                                2013
                                  --------------------------------
                                              Per Share  Per Share
                                                 Net        Net
                                      Net       Income     Income
                                     Income    (Loss),    (Loss),
                                     (Loss)     Basic     Diluted
                                   ---------  ---------  ---------
GAAP                               $  (6,982) $   (0.03) $   (0.03)
Non-GAAP Reconciling Items:
  Amortization of intangibles          6,673
  Share-based compensation            10,268
  Restructuring charges                4,902
  Outsourcing transition costs           952
                                   ---------
Non-GAAP                           $  15,813  $    0.06  $  0.06**

  Computation of basic and diluted
   net income (loss) per share:                  GAAP     Non-GAAP
                                              ---------  ---------
    Net income (loss)                         $  (6,982) $  15,813
      Interest on dilutive
       convertible notes                              -      2,363
                                              ---------  ---------
    Income (loss) for purposes of
     computing income (loss) per
     diluted share                            $  (6,982) $  18,176
                                              =========  =========

  Weighted average shares:
    Basic                                       246,183    246,183
      Dilutive shares from stock
       plans                                          -      2,925
      Dilutive shares from
       convertible notes                              -     42,502
                                              ---------  ---------
    Diluted                                     246,183    291,610
                                              =========  =========

** Non-GAAP per share net income (loss): Each fiscal period is calculated independently, thus the sum of each of the quarter's non-GAAP per diluted share net income (loss) does not necessarily equal the year-to-date non-GAAP per diluted share net income (loss). For example, certain convertible subordinated notes were anti-dilutive in the second quarter of fiscal 2014 but were dilutive for the year-to-date period.

The non-GAAP financial information set forth in this table is not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial information used by other companies.




                                      Three Months Ended December 31, 2012
                                  ------------------------------------------
                                                (Revised) Note 1

                                                                   Income
                                              Gross                (Loss)
                                    Gross    Margin   Operating     From
                                    Margin    Rate     Expenses  Operations
                                  --------- --------  ---------  ----------
GAAP                              $  68,001     42.7% $  73,656  $   (5,655)
Non-GAAP Reconciling Items:
  Amortization of intangibles           911              (1,856)      2,767
  Share-based compensation              626              (3,090)      3,716
  Restructuring charges                   -              (6,602)      6,602
                                  ---------           ---------  ----------
Non-GAAP                          $  69,538     43.6% $  62,108  $    7,430



                                  Three Months Ended December 31,
                                               2012
                                 --------------------------------
                                          (Revised) Note 1

                                             Per Share  Per Share
                                                Net        Net
                                     Net       Income     Income
                                    Income    (Loss),    (Loss),
                                    (Loss)     Basic     Diluted
                                  ---------  ---------  ---------
GAAP                              $  (8,173) $   (0.04) $   (0.04)
Non-GAAP Reconciling Items:
  Amortization of intangibles         2,767
  Share-based compensation            3,716
  Restructuring charges               6,602
                                  ---------
Non-GAAP                          $   4,912  $    0.02  $    0.02

  Computation of basic and
   diluted net loss per share:                  GAAP     Non-GAAP
                                             ---------  ---------
  Net income (loss)                          $  (8,173) $   4,912
    Interest on dilutive
     convertible notes                               -        533
                                             ---------  ---------
  Net income (loss) for purposes
   of computing income (loss) per
   diluted share                                (8,173)     5,445
                                             =========  =========

  Weighted average shares:
    Basic                                      240,786    240,786
      Dilutive shares from stock
       plans                                         -      1,892
      Dilutive shares from
       convertible notes                             -     28,490
                                             ---------  ---------
    Diluted                                    240,786    271,168
                                             =========  =========



                                      Nine Months Ended December 31, 2012
                                  ------------------------------------------
                                                (Revised) Note 1

                                              Gross
                                    Gross    Margin   Operating   Loss From
                                    Margin    Rate     Expenses  Operations
                                  --------- --------  ---------  ----------
GAAP                              $ 182,998     40.9% $ 212,624  $  (29,626)
Non-GAAP Reconciling Items:
  Amortization of intangibles         3,407              (7,668)     11,075
  Share-based compensation            1,839              (9,890)     11,729
  Restructuring charges                   -              (6,602)      6,602
                                  ---------           ---------  ----------
Non-GAAP                          $ 188,244     42.1% $ 188,464  $     (220)


                                   Nine Months Ended December 31,
                                               2012
                                 --------------------------------
                                          (Revised) Note 1

                                             Per Share  Per Share
                                             Net Loss,  Net Loss,
                                   Net Loss    Basic     Diluted
                                  ---------  ---------  ---------
GAAP                              $ (37,127) $   (0.16) $   (0.16)
Non-GAAP Reconciling Items:
  Amortization of intangibles        11,075
  Share-based compensation           11,729
  Restructuring charges               6,602
                                  ---------
Non-GAAP                          $  (7,721) $   (0.03) $   (0.03)

  Computation of basic and
   diluted net loss per share:                  GAAP     Non-GAAP
                                             ---------  ---------
    Net loss                                 $ (37,127) $  (7,721)

  Weighted average shares:
    Basic and diluted                          239,099    239,099

Note 1 is presented above, before the Condensed Consolidated Statements of
Operations.

The non-GAAP financial information set forth in this table is not prepared
in accordance with generally accepted accounting principles and may be
different from non-GAAP financial information used by other companies.



                          QUANTUM CORPORATION
                  FORECAST FOURTH QUARTER FISCAL 2014
                    GAAP TO NON-GAAP RECONCILIATION
                         (Dollars in millions)




                                                      -----------------
                                                       Percentage Range
                                                      -----------------
Forecast fourth quarter gross margin rate on a
 GAAP basis                                            42.3%  -   43.3%
Forecast amortization of intangibles                         0.3%
Forecast share-based compensation                            0.4%
                                                      -----------------
Forecast fourth quarter gross margin rate on a
 non-GAAP basis                                        43.0%  -   44.0%
                                                      =================


                                                      -----------------
                                                         Dollar Range
                                                      -----------------
Forecast fourth quarter operating expense on a
 GAAP basis*                                           $59.7  -   $60.7
Forecast amortization of intangibles                         1.9
Forecast share-based compensation                            2.8
                                                      -----------------
Forecast fourth quarter operating expense on a
 non-GAAP basis                                        $55.0  -   $56.0
                                                      =================

* Forecast fourth quarter GAAP operating expense does not reflect
 facility restructuring charges for remaining lease payments as a
 result of the outsourcing decision as described in our Form 8-K as
 filed with the SEC on July 3, 2013. These charges will be recognized
 when we fully vacate the various locations and may occur in the fourth
 quarter of fiscal 2014, the first quarter of fiscal 2015 or a portion
 in each period.

Estimates based on current (January 29, 2014) projections.

The projected GAAP and non-GAAP financial information set forth in this
 table represent forward-looking statements within the meaning of the
 Private Securities Litigation Reform Act of 1995. For risk factors
 that could impact these projections, see our Annual Report on Form 10-
 K as filed with the SEC on June 7, 2013. We disclaim any obligation to
 update information in any forward-looking statement.

The non-GAAP financial information set forth in this table is not
 prepared in accordance with generally accepted accounting principles
 and may be different from non-GAAP financial information used by other
 companies.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists will discuss how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations m...
Public Cloud IaaS started it's life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in ado...
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, ...
ProfitBricks, the provider of painless cloud infrastructure for IaaS, today announced the release of a Node.js SDK written against its recently launched REST API. This new JavaScript based library provides coverage for all existing ProfitBricks REST API functions. With additional libraries set to release this month, ProfitBricks continues to prove its dedication to the DevOps community and commitment to making cloud migrations and cloud management painless. Node.js is an open source, cross-pl...
In this session we look at creating interactive communications via the web by adding messaging, file transfer, and group communication (group chat and audio/video conferencing) into the web experience. We will also discuss potential applications of this technology in areas including B2B, B2C, P2P, and gaming. Peter is Technical Director at Acision. He graduated from The University of Edinburgh in 2000 with a BSc (Hons) in Computer Science. After graduation Peter worked on a PSTN switch dev...
Many of the well-known examples of DevOps success we read in blogs on the Internet paint an idyllic picture of DevOps productivity. A team was facing a stodgy, slow-moving operations department, teams weren’t delivering software on time. Those teams moved to DevOps, became proactive about infrastructure and deployment automation, and an overnight transition to productivity ensues. People are promoted, projects are successful, and developers and system administrators dance hand-in-hand in a final...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable o...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) ap...
SOASTA, the leader in performance analytics, today reported record growth of the CloudTest community, exceeding 30,000 registered users of the CloudTest platform in Q1 2015. SOASTA also announced widespread adoption of its Web and mobile testing solutions, with more than 1,600 customers completing more than 285,000 tests using CloudTest during the quarter. This rapid growth shows that DevOps-driven digital businesses are embracing a more continuous approach to testing, and CloudTest is meeting t...
Recent technology advances in miniaturization has positioned the wearables as the pinnacle of technology convergence with the human body. We inquire if wearables are mere standard miniaturized devices extended with the connectivity and present our views on considerations like design, applications, performance, efficiency, interoperability, usage scenarios, human device interaction and consequent trade-offs enabling wearables to impart optimal value.
SYS-CON Media announced today that John Treadway’s blog has exceeded 475,000 page views. John Treadway, Vice President at Cloud Technology Partners, has surpassed 475,000 page views on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, Microservices Journal, and several others. His blog home page at SYS-CON can be found at JohnTreadway.SYS-CON.com.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.