SAN JOSE, Calif., Aug. 9, 2017 /PRNewswire/ -- Quantum Corp.
(NYSE: QTM) today reported results for the fiscal first quarter
2018 ended June 30, 2017, and
provided guidance for the fiscal second quarter and full year.
Fiscal First Quarter 2018 Financial Results
(All
comparisons are relative to the fiscal first quarter 2017 unless
otherwise stated.)1
- Total revenue increased to $116.9
million, up from $116.3
million.
- Branded revenue was $99.6
million, a 3 percent increase.
- Scale-out tiered storage revenue was $33.7 million, up from $30.8 million.
- Total data protection revenue was $73.1
million, down from $76.9
million and consisting of:
-
- $58.4 million in tape automation,
devices and media revenue, up 6 percent overall, with branded
revenue growing 14 percent and OEM revenue declining 32
percent.
- $14.7 million in disk backup
systems revenue, down from $21.5
million in the same quarter a year earlier which included a
large, multi-million dollar deal.
- Royalty revenue was $10.0
million, up from $8.6
million.
- GAAP operating loss was $2.5
million, and non-GAAP operating income was $2.2 million, compared to a loss of $1.8 million and income of $2.4 million, respectively.
- GAAP net loss was $3.7 million,
compared to $3.5 million, a net loss
of $0.11 per diluted
share2 in both quarters.
- Non-GAAP net income was $1.4
million, or $0.04 per diluted
share, up from $0.8 million, or
$0.02 per diluted share.
"We continued to build on our momentum over the past year,
growing total revenue year-over-year and generating non-GAAP net
profit for the fifth consecutive quarter," said Jon Gacek, president and CEO of Quantum.
"Although the total revenue increase was slight, branded revenue
grew 3 percent. Other revenue highlights included year-over-year
growth in scale-out tiered storage of 10 percent and another strong
quarter for branded tape automation, devices and media sales.
"We also announced StorNext 6, a major new release of our
industry-leading scale-out file system and data management
software, which recently began shipping. StorNext 6 will enable us
to deliver greater value to customers and, we believe, help further
broaden our market reach, along with several new partnerships we
announced during the quarter. They include ecosystem partnerships
with Veeam in data protection, Veritone in artificial intelligence
and DataFrameworks in data visualization and management, as well as
a strategic reseller partnership with Uniview in video
surveillance. [See "Fiscal First Quarter Business Highlights"
section below for additional information on these
partnerships.]
"As we look forward to the rest of fiscal 2018, we continue to
be excited about the opportunity to grow total revenue, driven by
expected scale-out tiered storage growth of at least 20 percent for
the year. At the same time, we remain focused on generating profit
and cash and are confident in our ability to manage our debt ―
including paying off our November
2017 convert ― with existing resources.
"In addition, our newly constituted board of directors has
launched a number of strategic initiatives and is working closely
with the management team to implement various work streams, with
the goal of improving long-term growth, recurring revenue and
profitability. As part of this work, we are in the process of
engaging a top-tier consulting firm which we expect will help the
company to identify and deliver improvements in the operating
characteristics of the business over the next six to 12 months,
including accretive contributions to non-GAAP earnings. We plan to
update investors on a quarterly basis regarding the progress of
this important initiative."
Fiscal Second Quarter and Full Year 2018
Guidance
Quantum provided the following guidance for the
fiscal second quarter 2018:
- Total revenue of $120 million to $125
million.
- GAAP and non-GAAP gross margin of 41-42 percent.
- GAAP and non-GAAP operating expenses of approximately
$49 million and $47 million, respectively.
- GAAP and non-GAAP interest expense of $2.4 million and $1.9
million, respectively, and taxes of $400,000.
- GAAP loss/earnings per share of ($0.06) to breakeven and non-GAAP earnings of
$0.01 to $0.05 per diluted
share.
The company also provided the following guidance for the full
fiscal year:
- Total revenue of $515 million to $525
million.
- GAAP and non-GAAP earnings per share above the levels achieved
in fiscal 2017.
Fiscal First Quarter Business Highlights
- Quantum announced new, unique integration with Veeam for
DXi® deduplication appliances and Quantum's latest
Scalar® tape storage platform to deliver more robust
data protection for virtual environments. These integrated
solutions make it easier for Veeam customers to deploy "3-2-1 data
protection" best practices — storing at least three copies of data
on two different types of media with one backup copy off-site — to
guard against data loss, localized disaster and ransomware.
- The company has established a strategic relationship with
Veritone Inc., a leader in cognitive analytics. Veritone aiWARE ― a
hybrid on-premise and cloud version of Veritone's best-in-class,
cloud-based artificial intelligence platform ― will be offered as
an integrated solution with StorNext®. This combination
will allow users to leverage the power of Veritone's analytics,
along with top cognitive engines, to extract new value from their
on-premise video and audio content without having to move it to the
cloud.
- Under another new partnership, Quantum has integrated
DataFrameworks ClarityNow software with its Xcellis®
scale-out storage and Artico™ archive appliances, providing
increased visibility into usage and other intelligence regarding
large unstructured data. Through deeper insight into their data,
users with highly demanding storage environments ― which can
include hundreds of storage nodes, dozens of file systems and
multiple different vendors ― will now be able to scan, organize,
access and migrate their data much more easily and efficiently to
meet their business or mission objectives.
- The company announced that Zhejiang Uniview Technologies Co.
Ltd., one of the top three video surveillance system integrators in
China, has agreed to become a
Quantum value-added reseller and strategic alliance partner. This
alliance gives Quantum greater reach into what is expected to be
the largest video surveillance market in the world by next year and
also reflects the company's focus on expanding its partnerships
with global system integrators in video surveillance.
- Further highlighting Quantum's emergence as a major player in
video surveillance, the company won two prestigious awards for
video surveillance storage at the ISC West 2017 Conference. The
Security Industry Association (SIA) named Quantum's StorNext data
management software as a category winner in the New Product
Showcase (NPS), one of the top accolades for product innovation in
the security industry. In addition, StorNext received the Platinum
Govies Government Security award given by Security Today magazine,
which honors outstanding government security products in a variety
of categories.
- In the media and entertainment market, Quantum's new StorNext 6
release garnered multiple honors at the 2017 NAB Show. Providing a
unique combination of new advanced data management features and
industry-leading performance, StorNext 6
won a NewBay Media Best of Show Award and Post Magazine
"Post Pick." The NewBay Media award recognizes technologies for
innovation, feature set, cost efficiency and performance in serving
the industry, while the Post Pick award is given to a standout new
product notable for its innovation. In addition, StorNext 6 was an
IABM Game Changer Award finalist, selected not only for innovation
but also for delivering significant operational and business
benefits.
Conference Call and Audio Webcast Notification
Quantum
will hold a conference call today, Aug. 9,
2017, at 2:00 p.m. PDT to
discuss its fiscal first quarter results. Press and industry
analysts are invited to attend in listen-only mode.
Dial-in number: 503-343-6063
Participant passcode: 55430824
Replay numbers: 855-859-2056 U.S.; 404-537-3406 International
Replay passcode: 55430824
Replay expiration: Wednesday, Aug. 16,
2017
Webcast site: www.quantum.com/investors
About Quantum
Quantum is a leading expert in scale-out
tiered 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. Quantum's end-to-end,
tiered storage foundation enables customers to maximize 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.
Quantum, the Quantum logo, Artico, DXi, StorNext and Xcellis 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: This press release contains
"forward-looking" statements. All statements other than statements
of historical fact are statements that could be deemed
forward-looking statements. Specifically, but without limitation,
statements relating to: i) the benefits, features, opportunities
and impacts of StorNext 6 and the product offerings resulting from
our new business relationships with Veeam, Veritone, DataFrameworks
and Zhejiang Uniview; ii) our focuses and expectations for the rest
of fiscal 2018; iii) our ability to pay off our November 2017 convert; iv) the goals and
expectations regarding our strategic initiatives and related work
streams, including our engagement of a consulting firm and the
resulting improvements; and v) all of our statements under the
heading "Fiscal Second Quarter and Full Year 2018 Guidance" 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 statements.
More detailed information about these 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 1, 2017.
Quantum expressly disclaims any obligation to update or alter its
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
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
and Board of Directors use 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.
Amortization of Intangible Assets
This includes acquired intangibles such as purchased technology in
connection with prior acquisitions which are included within other
long-term assets in the Condensed Consolidated Balance Sheet. 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, restricted stock units and employee stock
purchase plan. 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. 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
methodologies and assumptions used.
Amortization of Debt Costs
Amortization of debt costs, included in interest expense, relates
to the amortization of fees incurred and paid in connection with
the issuance of our debt and convertible notes. Amortization of
debt costs is a non-cash expense that is representative of a single
transaction which occurred in prior periods. The amount is excluded
from non-GAAP financial measures because it is not considered a
core operating activity and management believes that it is
appropriate to exclude the amortization from interest expense in
order to provide investors the ability to compare Quantum's
period-over-period results from continuing operations.
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.
Proxy Contest and Related Costs
Proxy contest and related costs are expenses incurred to respond to
activities and inquiries of VIEX Capital Advisors, LLC, including
their proxy solicitation and subsequent costs related to the
identification and appointment of new board members. These costs
are not considered core operating activities. 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.
Litigation Costs
Litigation costs are expenses incurred to defend ourselves and
perform other activities related to certain patent infringement
lawsuits filed by third parties. 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.
1 All revenue figures for scale-out tiered storage,
data protection, disk backup systems and tape automation, devices
and media in this press release include related service
revenue.
2 All earnings per share figures included in this press
release have been adjusted to reflect the reverse stock split,
effective April 18, 2017.
QUANTUM
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
June 30,
2017
|
|
March 31,
2017
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
8,661
|
|
|
$
|
12,958
|
|
Restricted
cash
|
1,891
|
|
|
1,832
|
|
Accounts
receivable
|
109,418
|
|
|
116,056
|
|
Manufacturing
inventories
|
27,821
|
|
|
27,661
|
|
Service parts
inventories
|
19,788
|
|
|
19,849
|
|
Other current
assets
|
10,005
|
|
|
9,969
|
|
Total current
assets
|
177,584
|
|
|
188,325
|
|
Long-term
assets:
|
|
|
|
Property and
equipment
|
10,455
|
|
|
11,186
|
|
Restricted
cash
|
20,000
|
|
|
20,000
|
|
Other long-term
assets
|
4,993
|
|
|
5,516
|
|
Total long-term
assets
|
35,448
|
|
|
36,702
|
|
|
$
|
213,032
|
|
|
$
|
225,027
|
|
Liabilities and
Stockholders' Deficit
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
45,007
|
|
|
$
|
41,611
|
|
Accrued
warranty
|
3,161
|
|
|
3,263
|
|
Deferred
revenue
|
79,996
|
|
|
84,683
|
|
Accrued restructuring
charges
|
2,249
|
|
|
869
|
|
Convertible
subordinated debt
|
62,926
|
|
|
62,827
|
|
Accrued
compensation
|
22,186
|
|
|
24,104
|
|
Other accrued
liabilities
|
13,309
|
|
|
12,998
|
|
Total current
liabilities
|
228,834
|
|
|
230,355
|
|
Long-term
liabilities:
|
|
|
|
Deferred
revenue
|
36,697
|
|
|
37,642
|
|
Accrued restructuring
charges
|
544
|
|
|
481
|
|
Long-term
debt
|
60,219
|
|
|
65,028
|
|
Other long-term
liabilities
|
4,736
|
|
|
7,520
|
|
Total long-term
liabilities
|
102,196
|
|
|
110,671
|
|
Stockholders'
deficit
|
(117,998)
|
|
|
(115,999)
|
|
|
$
|
213,032
|
|
|
$
|
225,027
|
|
QUANTUM
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
June 30,
2017
|
|
June 30,
2016
|
Revenue:
|
|
|
|
Product
|
$
|
71,618
|
|
|
$
|
71,826
|
|
Service
|
35,246
|
|
|
35,818
|
|
Royalty
|
9,994
|
|
|
8,640
|
|
Total
revenue
|
116,858
|
|
|
116,284
|
|
Cost of
revenue:
|
|
|
|
Product
|
50,949
|
|
|
50,132
|
|
Service
|
15,090
|
|
|
15,506
|
|
Total cost of
revenue
|
66,039
|
|
|
65,638
|
|
Gross
margin
|
50,819
|
|
|
50,646
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
10,605
|
|
|
11,058
|
|
Sales and
marketing
|
27,824
|
|
|
26,367
|
|
General and
administrative
|
12,509
|
|
|
12,960
|
|
Restructuring
charges
|
2,335
|
|
|
2,052
|
|
Total operating
expenses
|
53,273
|
|
|
52,437
|
|
Loss from
operations
|
(2,454)
|
|
|
(1,791)
|
|
Other
income
|
98
|
|
|
155
|
|
Interest
expense
|
(2,558)
|
|
|
(1,507)
|
|
Loss before income
taxes
|
(4,914)
|
|
|
(3,143)
|
|
Income tax provision
(benefit)
|
(1,240)
|
|
|
377
|
|
Net loss
|
$
|
(3,674)
|
|
|
$
|
(3,520)
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
|
(0.11)
|
|
|
$
|
(0.11)
|
|
Basic and diluted
weighted average shares
|
34,084
|
|
|
33,292
|
|
|
|
|
|
Included in the above
Statements of Operations:
|
|
|
|
|
|
|
|
Restructuring
charges:
|
$
|
2,335
|
|
|
$
|
2,052
|
|
|
|
|
|
Amortization of
intangibles:
|
|
|
|
Cost of
revenue
|
36
|
|
|
48
|
|
|
36
|
|
|
48
|
|
Share-based
compensation:
|
|
|
|
Cost of
revenue
|
217
|
|
|
280
|
|
Research and
development
|
286
|
|
|
403
|
|
Sales and
marketing
|
520
|
|
|
612
|
|
General and
administrative
|
590
|
|
|
703
|
|
|
1,613
|
|
|
1,998
|
|
Amortization of debt
costs:
|
|
|
|
Interest
expense
|
427
|
|
|
168
|
|
|
427
|
|
|
168
|
|
Proxy contest and
related costs:
|
|
|
|
General and
administrative
|
631
|
|
|
45
|
|
|
631
|
|
|
45
|
|
Litigation
costs:
|
|
|
|
General and
administrative
|
4
|
|
|
14
|
|
|
$
|
4
|
|
|
$
|
14
|
|
QUANTUM
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
June 30,
2017
|
|
June 30,
2016
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(3,674)
|
|
|
$
|
(3,520)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation
|
1,268
|
|
|
1,383
|
|
Amortization and
write off of debt issuance costs
|
427
|
|
|
168
|
|
Service parts lower
of cost or market adjustment
|
1,257
|
|
|
1,337
|
|
Tax benefit from
settlement
|
(1,656)
|
|
|
—
|
|
Non-cash
interest
|
277
|
|
|
—
|
|
Deferred income
taxes
|
120
|
|
|
75
|
|
Share-based
compensation
|
1,613
|
|
|
1,998
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
6,638
|
|
|
15,426
|
|
Manufacturing
inventories
|
(709)
|
|
|
3,686
|
|
Service parts
inventories
|
(1,034)
|
|
|
(124)
|
|
Accounts
payable
|
3,318
|
|
|
(8,364)
|
|
Accrued
warranty
|
(102)
|
|
|
14
|
|
Deferred
revenue
|
(5,633)
|
|
|
(4,426)
|
|
Accrued restructuring
charges
|
1,444
|
|
|
726
|
|
Accrued
compensation
|
(2,047)
|
|
|
580
|
|
Other assets and
liabilities
|
(489)
|
|
|
(3,798)
|
|
Net cash provided by
operating activities
|
1,018
|
|
|
5,161
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property and
equipment
|
(123)
|
|
|
(529)
|
|
Return of principal from
other investments
|
278
|
|
|
—
|
|
Restricted cash
|
(2)
|
|
|
(15)
|
|
Net cash provided by (used in) investing activities
|
153
|
|
|
(544)
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings of long-term debt, net
|
71,800
|
|
|
3,000
|
|
Repayments of long-term debt
|
(77,175)
|
|
|
(6,959)
|
|
Payment
of taxes due upon vesting of restricted stock
|
(111)
|
|
|
(27)
|
|
Proceeds
from issuance of common stock
|
5
|
|
|
—
|
|
Net cash used in
financing activities
|
(5,481)
|
|
|
(3,986)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
13
|
|
|
(5)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(4,297)
|
|
|
626
|
|
Cash and cash
equivalents at beginning of period
|
12,958
|
|
|
33,870
|
|
Cash
and cash equivalents at end of period
|
$
|
8,661
|
|
|
$
|
34,496
|
|
QUANTUM
CORPORATION
|
GAAP TO NON-GAAP
RECONCILIATION
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months Ended
June 30, 2017
|
|
Gross
Margin
|
|
Gross
Margin
Rate
|
|
Income From
Operations
|
|
Operating
Margin
|
|
Net
Income
|
|
Per Share
Net Income
(Loss), Basic
|
|
Per Share Net
Income (Loss),
Diluted
|
GAAP
|
$
|
50,819
|
|
43.5%
|
|
$
|
(2,454)
|
|
(2.1)%
|
|
$
|
(3,674)
|
|
$
|
(0.11)
|
|
$
|
(0.11)
|
Non-GAAP Reconciling
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
36
|
|
|
|
36
|
|
|
|
36
|
|
|
|
|
Share-based
compensation
|
217
|
|
|
|
1,613
|
|
|
|
1,613
|
|
|
|
|
Restructuring
charges
|
—
|
|
|
|
2,335
|
|
|
|
2,335
|
|
|
|
|
Proxy contest and
related costs
|
—
|
|
|
|
631
|
|
|
|
631
|
|
|
|
|
Litigation
costs
|
—
|
|
|
|
4
|
|
|
|
4
|
|
|
|
|
Amortization of debt
costs
|
—
|
|
|
|
—
|
|
|
|
427
|
|
|
|
|
Non-GAAP
|
$
|
51,072
|
|
43.7%
|
|
$
|
2,165
|
|
1.9%
|
|
$
|
1,372
|
|
$
|
0.04
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net income (loss) per share:
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
Net income
(loss)
|
|
|
|
|
|
$
|
(3,674)
|
|
$
|
1,372
|
Interest on dilutive
convertible notes
|
|
|
|
|
|
|
|
—
|
|
—
|
Income (loss) for
purposes of computing income (loss) per diluted share
|
|
|
|
|
|
$
|
(3,674)
|
|
$
|
1,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
34,084
|
|
34,084
|
Dilutive shares
from stock plans
|
|
|
|
—
|
|
834
|
Diluted
|
|
34,084
|
|
34,918
|
|
|
|
Three Months Ended
June 30, 2016
|
|
Gross
Margin
|
|
Gross
Margin
Rate
|
|
Income
From
Operations
|
|
Operating
Margin
|
|
Net
Income
|
|
Per Share
Net Income
(Loss), Basic
|
|
Per Share Net
Income (Loss),
Diluted
|
GAAP
|
$
|
50,646
|
|
43.6%
|
|
$
|
(1,791)
|
|
(1.5)%
|
|
$
|
(3,520)
|
|
$
|
(0.11)
|
|
$
|
(0.11)
|
Non-GAAP Reconciling
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
|
Share-based
compensation
|
280
|
|
|
|
1,998
|
|
|
|
1,998
|
|
|
|
|
Restructuring
charges
|
—
|
|
|
|
2,052
|
|
|
|
2,052
|
|
|
|
|
Proxy contest and
related costs
|
—
|
|
|
|
45
|
|
|
|
45
|
|
|
|
|
Litigation
costs
|
—
|
|
|
|
14
|
|
|
|
14
|
|
|
|
|
Amortization of debt
costs
|
—
|
|
|
|
—
|
|
|
|
168
|
|
|
|
|
Non-GAAP
|
$
|
50,974
|
|
43.8%
|
|
$
|
2,366
|
|
2.0%
|
|
$
|
805
|
|
$
|
0.02
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net income (loss) per share:
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
Net income
(loss)
|
|
|
|
|
|
|
$
|
(3,520)
|
|
$
|
805
|
Interest on dilutive
convertible notes
|
|
|
|
|
|
|
|
—
|
|
—
|
Income (loss) for
purposes of computing income (loss) per diluted share
|
|
|
|
|
|
$
|
(3,520)
|
|
$
|
805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
33,292
|
|
33,292
|
Dilutive shares
from stock plans
|
|
|
|
|
|
—
|
|
128
|
Diluted
|
|
|
|
|
|
|
|
33,292
|
|
33,420
|
|
The non-GAAP
financial information set forth in these tables 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 SECOND
QUARTER FISCAL 2018
GAAP TO NON-GAAP
RECONCILIATION
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
Dollars
|
Forecast operating
expense on a GAAP basis
|
$49.0
|
Forecast share-based
compensation
|
(2.0)
|
Forecast operating
expense on a non-GAAP basis
|
$47.0
|
|
|
|
Dollars
|
Forecast interest
expense on a GAAP basis
|
$2.4
|
Forecast amortization
of debt costs
|
(0.5)
|
Forecast interest
expense on a non-GAAP basis
|
$1.9
|
|
|
|
Dollars per
Share
|
Forecast diluted
earnings per share on a GAAP basis
|
$
|
(0.06)
|
—
|
$
|
0.00
|
Forecast share-based
compensation
|
|
0.05
|
—
|
|
0.06
|
Forecast amortization
of debt costs
|
0.01
|
Forecast diluted
earnings per share on a non-GAAP basis
|
$
|
0.01
|
|
|
$
|
0.05
|
|
|
Estimates based on
current fiscal 2018 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 filed with the SEC on May 31, 2017. 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.
|
Contact:
Brad Cohen
Public Relations
Quantum Corp.
408-944-4044
brad.cohen@quantum.com
Brinlea Johnson or Allise
Furlani
Investor Relations
The Blueshirt Group
212-331-8424 or 212-331-8433
brinlea@blueshirtgroup.com or allise@blueshirtgroup.com
View original
content:http://www.prnewswire.com/news-releases/quantum-corporation-reports-fiscal-first-quarter-2018-results-300502241.html
SOURCE Quantum Corp.