SAN JOSE, Calif., April 9, 2015 /PRNewswire/ -- Quantum Corp.
(NYSE: QTM) today announced positive preliminary results for the
fiscal fourth quarter 2015 ended March 31,
2015 (unless otherwise noted, all comparisons are relative
to the fiscal fourth quarter 2014):
- Total revenue was in excess of $145
million, significantly above the company's January guidance
range of $130 million to $135
million. This was also up from $128
million in the prior year period.
- Total branded revenue was more than $120
million, up from $102 million,
as Quantum completed fiscal 2015 with year-over-year branded
revenue growth in all four quarters.
- Scale-out storage and related service revenue was over
$30 million, an increase of more than
$15 million.
- DXi and related service revenue was approximately $25 million, up nearly 30 percent.
- GAAP operating income was approximately $2 million, compared to a GAAP operating loss of
$12 million.
- GAAP net income was approximately $12
million, or approximately $0.04 per diluted share. This included
approximately $13 million from the
gain on sale of Quantum's investment in a privately held company.
In the prior year, Quantum reported a GAAP net loss of $14 million, or $0.06 per diluted share.
- Non-GAAP operating income was approximately $6 million, up from an operating loss of
$159,000.
- Non-GAAP net income was approximately $17 million, or approximately $0.06 per diluted share. This was up from a net
loss of $2 million, or $0.01 per diluted share, and again included
approximately $13 million resulting
from the gain on sale of Quantum's investment in a privately held
company.
- Total cash and cash equivalents were approximately $70 million as of March
31, 2015, and reflected the early repurchase of $50 million of convertible notes due November 2015 in an all-cash transaction during
the quarter.
"Our positive preliminary fourth quarter results demonstrate our
success in continuing to build on the momentum we've had throughout
this past year," said Jon Gacek,
president and CEO of Quantum. "This was our fourth consecutive
quarter of year-over-year branded growth, and our leadership in
scale-out storage was again a key driver. With more than 100
percent year-over-year growth in scale-out storage revenue, we
significantly increased our scale-out storage growth rate over the
prior quarter, as we've done each quarter this year, and ended
fiscal 2015 up more than 70 percent over the prior year. In
addition, total DXi revenue grew approximately 10 percent for the
year and reflected the actions we've taken over the last two years
to drive DXi growth and profit.
"We also increased our fourth quarter operating profit
year-over-year, even after accounting for additional compensation
expense in the quarter due to our strong revenue and operating
profit performance.
"Heading into fiscal 2016, we expect continued strong
performance in both our scale-out storage and DXi product lines to
deliver another year of growth for Quantum. Due to typical
seasonality, Q1 will likely show the most modest year-over-year
comparison, and we plan to provide more detailed guidance when we
report our final Q4 results in early May."
Quantum will provide more details on its fourth quarter fiscal
2015 results and guidance for fiscal 2016 in its earnings
announcement on May 6, 2015 (see
conference call information below).
Earnings Conference Call and Audio Webcast
Notification
Quantum will issue a news release on its fourth
quarter and full year 2015 financial results on Wednesday, May 6, 2015, after the close of the
market. The company will also hold a conference call and live audio
webcast to discuss these results that same day at 2:00 p.m. PDT. Press and industry analysts are
invited to attend in listen-only mode.
Dial-in number: 719-457-2645 (U.S. and International); Access Code
6066999
Replay number: 719-457-0820 (U.S. and International); Access Code
6066999
Replay expiration: Monday, May 11,
2015, at 5:00 p.m. PDT
Webcast site: www.quantum.com/investors
About Quantum
Quantum is a leading expert in scale-out
storage, archive and data protection, providing solutions for
capturing, sharing and preserving digital assets over the entire
data lifecycle. From small businesses to major enterprises, more
than 100,000 customers have trusted Quantum to address their most
demanding data workflow challenges. With Quantum, customers can Be
Certain™ they have the end-to-end storage foundation to 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, Be Certain, DXi and StorNext 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 expected preliminary
results for the fourth quarter of fiscal 2015 and our expected
results for fiscal 2016, including the first quarter of fiscal
2016, 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
6, 2014 and in Quantum's Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on February 6, 2015. 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
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.
The non-GAAP financial measures used in this press release
exclude the impact of the items below 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. 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.
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.
Crossroads Patent Litigation Costs
Crossroads patent litigation costs are expenses incurred to defend
ourselves and perform other activities related to a patent
infringement lawsuit filed by Crossroads Systems, Inc. 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.
Symform Expenses, Net
Quantum acquired a cloud storage services platform from Symform,
Inc. ("Symform") in July 2014.
Symform revenue comprises revenue generated from the Symform cloud
storage services platform. Symform expenses consist of costs
related to running, maintaining and further developing the Symform
cloud storage services platform as well as the costs of integrating
Symform into Quantum's business. Net Symform expenses represent
Symform expenses less Symform revenue, and non-GAAP gross margin
excludes both Symform revenue and cost of revenue. Management
believes that it is appropriate to exclude these amounts in order
to provide investors with a view of Quantum's results consistent
with how management views and is running the business.
Loss on Debt Extinguishment
The loss on debt extinguishment relates to a specific debt
repurchase action undertaken in January
2015. The loss 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 loss in
order to provide investors the ability to compare Quantum's
period-over-period 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.
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
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