Announces Postponement of Second
Quarter
Earnings Release and Conference Call
SAN
JOSE, Calif., Nov. 13,
2023 /PRNewswire/ -- Quantum Corporation (NASDAQ:
QMCO) ("Quantum or the "Company") announced today that it has filed
a Form 12b-25 Notification of Late Filing because it is unable to
file its Quarterly Report on Form 10-Q for the quarter ended
September 30, 2023 (the "Form 10-Q")
by November 9, 2023, the original due date for such
filing. As a result, Quantum is postponing its fiscal 2024
second quarter earnings announcement and conference call, which are
typically held in the second week of November.
Quantum has delayed filing the Form 10-Q because the Company is
re-evaluating its application of Standalone Selling Price as part
of Accounting Standards Codification (ASC) Topic 606. Quantum
does not have a set date for completing this re-evaluation but is
working to finish it as soon as possible.
The Company's current method of accounting was adopted in
August 2019 after the Company
finalized a restatement of its financial statements. The
Company has applied that method consistently since then but has
decided that it is appropriate to re-evaluate its methodology for
accounting under ASC 606. At the conclusion of this
re-evaluation, the Company intends to announce the results and have
a conference call to discuss full financials for the second quarter
of fiscal 2024. Quantum is providing its cash and long-term
debt balances as of September 30,
2023, which are unaudited below.
In conjunction with this announcement, Quantum has worked with
its lenders under its Term Loan Credit Agreement and Amended and
Restated Revolving Credit Agreement. Those lenders have
granted waivers with respect to Quantum's financials for the second
quarter of fiscal 2024 while the Company re-evaluates its
methodology for accounting under ASC 606. The waivers are
described in an SEC Form 8-K that also was filed today.
Liquidity and Debt
- Cash and cash equivalents were $25.6
million, compared to $25.7
million as of September 30,
2022.
- Outstanding term loan debt was $87.9
million, compared to $77.2
million as of September 30,
2022. Outstanding borrowings under the revolving credit
facility was $21.5 million, compared
to $21.5 million as of September 30, 2022.
- Total interest expense for the three-month period ended
September 30, 2023 was $3.9 million, compared to $2.7 million for the same period a year ago.
About Quantum
Quantum technology, software, and services provide the solutions
that today's organizations need to make video and other
unstructured data smarter – so their data works for them and not
the other way around. With over 40 years of innovation, Quantum's
end-to-end platform is uniquely equipped to orchestrate, protect,
and enrich data across its lifecycle, providing enhanced
intelligence and actionable insights. Leading organizations in
cloud services, entertainment, government, research, education,
transportation, and enterprise IT trust Quantum to bring their data
to life, because data makes life better, safer, and smarter.
Quantum is listed on Nasdaq (QMCO). For more information visit
www.quantum.com.
Quantum and the Quantum logo are registered 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.
Forward-Looking Information
The information provided in this press release may include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934 (Exchange Act). These forward-looking statements are
largely based on our current expectations and projections about
future events affecting our business. Such forward-looking
statements include, in particular, statements related to the
ongoing re-evaluation of certain accounting matters, including the
timing and results of such re-evaluation; consequences and/or
effects of the re-evaluation; timing of completion of the
re-evaluation and the announcement of the Company's fiscal 2024
second quarter financial results; and the Company's plans,
objectives and intentions that are not historical facts
generally.
These forward-looking statements may be identified by the use of
terms and phrases such as "anticipates", "believes", "can",
"could", "estimates", "expects", "forecasts", "intends", "may",
"plans", "projects", "targets", "will", and similar expressions or
variations of these terms and similar phrases. Additionally,
statements concerning future matters and other statements regarding
matters that are not historical are forward-looking statements.
Investors are cautioned that these forward-looking statements
relate to future events or our future performance and are subject
to business, economic, and other risks and uncertainties, both
known and unknown, that may cause actual results, levels of
activity, performance or achievements to be materially different
from those expressed or implied by any forward-looking
statements.
These forward-looking statements involve risks and uncertainties
that could cause actual results to differ materially from those
projected, including without limitation, the following: the outcome
of the pending re-evaluation of accounting matters and the
possibility of adjustments, including material adjustments, to the
Company's financial statements as the re-evaluation progresses; the
discovery of additional and unanticipated information during the
re-evaluation process; and the application of accounting or tax
principles in an unanticipated manner. See also other
risks that are described in "Risk Factors" in the Company's filings
with the Securities and Exchange Commission (the SEC), including
its Annual Report on Form 10-K filed with the SEC for the fiscal
year ended March 31, 2023, and any
subsequent reports filed with the SEC. The Company does not intend
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 or regulation.
Investor Relations Contacts:
Shelton Group
Leanne K. Sievers | Brett L. Perry
P: 949-224-3874 | 214-272-0070
E: sheltonir@sheltongroup.com
Public Relations Contacts:
August
Steven Goldberg | Jenny MacMichael
P: 917-375-5537 | 559-265-2496
E: Quantum-August@augustco.com
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SOURCE Quantum Corporation