UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
___________________
FORM 8-K
___________________
CURRENT
REPORT
Pursuant to Section 13 or
15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of
earliest event reported): July
30, 2015
___________________
Quantum
Corporation
(Exact name of registrant
as specified in its charter)
___________________
Delaware
(State or other
jurisdiction of incorporation)
| 1-13449 |
94-2665054 |
| (Commission File No.) |
(IRS Employer Identification
No.) |
224 Airport
Parkway, San Jose, CA 95110
(Address of principal
executive offices and zip code)
Registrant’s telephone
number, including area code: (408) 944-4000
___________________
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
| ☐ |
|
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425) |
| ☐ |
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12) |
| ☐ |
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ |
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of
Financial Operations and Financial Condition
On July 30, 2015, Quantum
Corporation issued a press release announcing earnings for its fiscal first
quarter ended June 30, 2015, a copy of which is attached as Exhibit 99.1 hereto
and incorporated by reference.
This information shall not be
deemed “filed” for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the Exchange Act), or incorporated by reference in any filing
under the Securities Act of 1933, as amended, or the Exchange Act, except as
shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial
Statements and Exhibits
(d) Exhibits
| 99.1 |
|
Press Release, dated
July 30,
2015. |
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly
authorized.
|
QUANTUM CORPORATION |
|
|
|
|
|
/s/ SHAWN D.
HALL |
|
Shawn D. Hall |
|
Senior Vice President, General Counsel and |
|
Secretary |
| |
|
| Dated: July 30, 2015 |
|
EXHIBIT INDEX
| Exhibit |
|
Description |
| 99.1 |
|
Press Release, dated July 30, 2015. |
Exhibit
99.1
 |
News
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 |
For
Release:
July 30, 2015
1:05 p.m.
PDT |
Quantum Corporation
Reports Fiscal First Quarter 2016 Results
Grows Scale-out Storage
Revenue 54% Year-Over-Year Despite Impact of
General Storage
Market Weakness Across All Product Lines
SAN JOSE,
Calif. — July 30, 2015 — Quantum Corp. (NYSE: QTM) today reported results for the fiscal first quarter 2016
ended June 30, 2015.
Fiscal First Quarter 2016 Results
(All comparisons are relative to the fiscal first quarter 2015.)
| ● |
Revenue was
$110.9 million, a decrease
of approximately $17 million, primarily driven by overall weakness in the general storage market. |
| ● |
Scale-out
storage and related service
revenue grew approximately $10
million to $27.8 million, a
54 percent increase, marking the fourth consecutive quarter of 50-plus percent growth and
16th consecutive quarter of year-over-year growth. |
| ● |
Royalty revenue
increased $1 million to $10.2 million. |
| ● |
Disk backup systems and related service revenue
was relatively flat at $17.3 million. |
| ● |
Branded tape automation and related service
revenue decreased approximately $15 million to $35.1 million, while OEM
tape automation and related service revenue was down approximately $6
million to $9.5 million. |
| ● |
Devices and media revenue was $10.9 million, a
decline of approximately $7 million. |
| ● |
The GAAP net loss was $10.8 million, or $0.04
per diluted share, compared to a net loss of $4.3 million, or $0.02 per
diluted share. |
| ● |
The non-GAAP net loss was $7.0 million, or
$0.03 per diluted share, compared to net income of $2.4 million, or $0.01
per diluted share. |
-more-
“Like other companies,
we were impacted by overall weakness in the general storage market, which was most notable for Quantum in tape-based data protection but impacted all product lines, including scale-out storage,” said
Jon Gacek, president and CEO of Quantum. “Nevertheless, we continued to generate
strong revenue growth in scale-out storage — 54 percent year-over-year — with
higher sales across our StorNext® workflow storage solutions and
Lattus™ extended online storage. Our scale-out storage results reflect our
success in expanding our leadership in media and entertainment while growing our
footprint in other vertical markets and use cases such as video
surveillance.
“Moving forward, we plan
to build on this scale-out storage strategy, capitalizing on our unique ability
to deliver integrated solutions that provide both unmatched performance and low
total cost of ownership through a tiered storage approach encompassing flash,
spinning disk, object storage, tape and the cloud. In doing so, we will continue
to use dedicated resources in select verticals as well as our broader sales
force for greater market coverage.
“For our data protection
products, we will continue leveraging our technology leadership, extensive
customer base, and strong channel and technology partnerships to generate profit and
cash. In addition, we will closely monitor how the general storage
market evolves and take this into account in our spending and investment decisions."
Fiscal Second Quarter 2016
Outlook
Given both the
challenging environment in the prior quarter and the growth opportunities in scale-out storage going
forward, Quantum said it is taking a balanced approach to operating the company
in the fiscal second quarter, which is reflected in its guidance for the
quarter:
| ● |
Revenue of $120 million to $130 million. |
| ● |
GAAP and non-GAAP gross margin of approximately 42-43
percent. |
| ● |
GAAP and non-GAAP operating expenses of approximately $55
million to $57 million and $52 million to $54 million, respectively. |
| ● |
Interest expense of $1.9 million and taxes of
$400,000. |
Quantum also stated that
it has the resources to pay off its convertible notes due November 2015 and that
it expects to utilize a combination of cash on hand, cash generated from
operations and its $75 million bank revolver to do so.
Fiscal 2016 Outlook
For fiscal 2016, the company reiterated its year-over-year revenue growth target of 50 percent in scale-out storage and said that it will continue to make investments to capitalize on the market opportunities in this part of its business. In addition, considering both the challenging general storage environment and the potential for scale-out storage opportunities to exceed current expectations, the company stated that it is not providing annual guidance.
-more-
Fiscal First Quarter
2016 Business Highlights
| ● |
Scale-out storage product revenue from the
media and entertainment market grew 32 percent year-over-year. In addition
to extending its leadership in broadcast and postproduction, Quantum
expanded its customer base in corporate and sports video, where the
company’s long-standing expertise in enabling highly demanding video
workflows is a key differentiator. |
| ● |
Outside of media and entertainment, scale-out
storage product revenue increased more than 250 percent year-over-year.
Quantum saw increasing market traction in video surveillance, where the
combination of its expertise in managing video, its industry-leading
streaming performance, and its workflow-optimized tiered storage approach
are a key differentiator. The company also had several large deals in
genomics and geospatial applications, as customers purchased Lattus
systems to provide a massively scalable active archive. |
| ● |
Quantum announced three new archive solutions
that empower customers to address the challenge of unstructured data
growth with cost-effective tiered storage strategies: 1) the Artico™
intelligent NAS archive appliance, which offers customers using scale-out
NAS systems a flexible, low-cost entry point for establishing archives
outside of StorNext environments and can scale to hold petabytes of data
across object storage, tape and cloud storage tiers; 2) a certified
solution combining Quantum DXi® appliances and Rocket Arkivio
Autostor software that provides not only backup but also archive; and 3) a
Lattus extended online storage offering with object storage nodes that
integrate new 6TB disk drives for increased density and lower cost per
terabyte. |
| ● |
The company and Dot Hill announced a new,
global go-to-market partnership in which Quantum is integrating Dot Hill’s
full line of enterprise-class disk storage systems into its tiered storage
offerings. The new partnership expands Quantum’s range of solutions for
managing and protecting data across primary storage, backup and
archive. |
| ● |
In conjunction with the 2015 NAB Show, Quantum
earned four prestigious awards for its workflow storage and management
solutions. Broadcast Beat recognized the company’s Q-Cloud™ Archive
storage service for creativity, and TV Technology magazine named the
public cloud service as a Best of Show Award recipient. In addition,
Quantum’s StorNext Pro™ Solutions won a StudioDaily Prime Award, and IABM
honored the company itself with a Game Changer Award. |
Conference Call and
Audio Webcast Notification
Quantum will hold a
conference call today, July 30, 2015, 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: 719-325-2420 (U.S. and International); Access Code
7608393
Replay number: 719-457-0820 (U.S. and International); Access Code
7608393
Replay expiration: Tuesday, Aug. 4, 2015, at 5:00 p.m.
PDT
Webcast site:
www.quantum.com/investors
-more-
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, StorNext, Lattus, Artico, DXi, Q-Cloud and StorNext Pro 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) our plans to build on our scale-out storage strategy; ii)
capitalizing on our unique ability to deliver integrated solutions; iii) using
dedicated resources in select verticals as well as our broader sales force for
greater market coverage; iv) leveraging our technology leadership, extensive
customer base and strong channel and technology partnerships to generate profit and
cash from our data protection offerings; v) monitoring the general storage market and taking this into account in our spending and investment decisions; and vi) our outlook, including all statements under the sections titled “Fiscal Second Quarter 2016 Outlook” and “Fiscal 2016 Outlook,” 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 12, 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, 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.
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.
-more-
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.
Proxy Contest and Related
Costs
Proxy contest and
related costs are expenses incurred to respond to activities and inquiries of
Starboard Value LP, including their proxy solicitation. The Company has not
incurred significant expenses in connection with such matters in historical
periods and 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.
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.
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.
-more-
QUANTUM CORPORATION
CONDENSED CONSOLIDATED
BALANCE SHEETS
(In thousands)
(Unaudited)
|
|
June 30, 2015 |
|
March 31, 2015* |
| Assets |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| Cash and
cash equivalents |
|
$ |
53,685 |
|
|
$ |
67,948 |
|
| Restricted
cash |
|
|
2,713 |
|
|
|
2,621 |
|
| Accounts
receivable |
|
|
97,329 |
|
|
|
124,159 |
|
|
Manufacturing inventories |
|
|
49,149 |
|
|
|
50,274 |
|
| Service
parts inventories |
|
|
24,713 |
|
|
|
24,640 |
|
| Other
current assets |
|
|
12,178 |
|
|
|
11,942 |
|
|
Total current assets |
|
|
239,767 |
|
|
|
281,584 |
|
| |
| Long-term assets: |
|
|
|
|
|
|
|
|
| Property
and equipment |
|
|
14,401 |
|
|
|
14,653 |
|
| Intangible
assets |
|
|
594 |
|
|
|
731 |
|
|
Goodwill |
|
|
55,613 |
|
|
|
55,613 |
|
| Other
long-term assets |
|
|
4,246 |
|
|
|
4,577 |
|
|
Total long-term assets |
|
|
74,854 |
|
|
|
75,574 |
|
| |
|
$ |
314,621 |
|
|
$ |
357,158 |
|
| |
| Liabilities and Stockholders' Deficit |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Accounts
payable |
|
$ |
35,855 |
|
|
$ |
54,367 |
|
| Accrued
warranty |
|
|
3,600 |
|
|
|
4,219 |
|
| Deferred
revenue, current |
|
|
89,390 |
|
|
|
95,899 |
|
| Accrued
restructuring charges, current |
|
|
2,674 |
|
|
|
3,855 |
|
|
Convertible subordinated debt, current |
|
|
83,501 |
|
|
|
83,345 |
|
| Accrued
compensation |
|
|
34,450 |
|
|
|
35,414 |
|
| Other
accrued liabilities |
|
|
15,734 |
|
|
|
20,740 |
|
|
Total current liabilities |
|
|
265,204 |
|
|
|
297,839 |
|
| |
| Long-term liabilities: |
|
|
|
|
|
|
|
|
| Deferred
revenue, long-term |
|
|
37,359 |
|
|
|
39,532 |
|
| Accrued
restructuring charges, long-term |
|
|
881 |
|
|
|
991 |
|
|
Convertible subordinated debt, long-term |
|
|
68,908 |
|
|
|
68,793 |
|
| Other
long-term liabilities |
|
|
10,262 |
|
|
|
10,441 |
|
|
Total long-term liabilities |
|
|
117,410 |
|
|
|
119,757 |
|
| |
|
Stockholders' deficit |
|
|
(67,993 |
) |
|
|
(60,438 |
) |
| |
|
$ |
314,621 |
|
|
$ |
357,158 |
|
| * |
Derived
from the March 31, 2015 audited Consolidated Financial
Statements. |
-more-
QUANTUM CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share
amounts)
(Unaudited)
| |
|
|
Three Months Ended |
|
|
|
|
June 30, 2015 |
|
June 30, 2014 |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
62,719 |
|
|
$ |
80,194 |
|
|
|
Service |
|
|
37,939 |
|
|
|
38,500 |
|
|
|
Royalty |
|
|
10,198 |
|
|
|
9,434 |
|
|
|
Total revenue |
|
|
110,856 |
|
|
|
128,128 |
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
Product |
|
|
46,964 |
|
|
|
54,908 |
|
|
|
Service |
|
|
16,927 |
|
|
|
17,694 |
|
|
|
Total cost of revenue |
|
|
63,891 |
|
|
|
72,602 |
|
|
|
Gross margin |
|
|
46,965 |
|
|
|
55,526 |
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
13,323 |
|
|
|
14,554 |
|
|
|
Sales and marketing |
|
|
27,605 |
|
|
|
27,705 |
|
|
|
General and administrative |
|
|
13,986 |
|
|
|
14,371 |
|
|
|
Restructuring charges |
|
|
258 |
|
|
|
865 |
|
|
|
Total
operating expenses |
|
|
55,172 |
|
|
|
57,495 |
|
|
|
Gain on
sale of assets |
|
|
- |
|
|
|
462 |
|
|
|
Loss from operations |
|
|
(8,207 |
) |
|
|
(1,507 |
) |
|
|
|
|
|
Other
income and expense |
|
|
(286 |
) |
|
|
(125 |
) |
|
|
Interest
expense |
|
|
(1,923 |
) |
|
|
(2,444 |
) |
|
|
Loss before income taxes |
|
|
(10,416 |
) |
|
|
(4,076 |
) |
|
|
Income tax
provision |
|
|
339 |
|
|
|
248 |
|
|
|
Net loss |
|
$ |
(10,755 |
) |
|
$ |
(4,324 |
) |
|
|
|
|
|
Basic and
diluted net loss per share |
|
$ |
(0.04 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
Weighted
average basic and diluted shares: |
|
|
258,448 |
|
|
|
250,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in the above Statements
of Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles: |
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
$ |
137 |
|
|
$ |
378 |
|
|
| |
Sales and
marketing |
|
|
- |
|
|
|
1,856 |
|
|
|
|
|
|
137 |
|
|
|
2,234 |
|
|
|
Share-based compensation: |
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
|
362 |
|
|
|
414 |
|
|
|
Research
and development |
|
|
549 |
|
|
|
780 |
|
|
|
Sales and
marketing |
|
|
870 |
|
|
|
910 |
|
|
|
General
and administrative |
|
|
872 |
|
|
|
964 |
|
|
|
|
|
|
2,653 |
|
|
|
3,068 |
|
|
|
Outsourcing transition costs: |
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
|
- |
|
|
|
126 |
|
|
|
|
|
|
- |
|
|
|
126 |
|
|
|
Proxy contest and related
costs: |
|
|
|
|
|
|
|
|
|
|
General
and administrative |
|
|
- |
|
|
|
188 |
|
|
|
|
|
|
- |
|
|
|
188 |
|
|
|
Crossroads patent litigation costs: |
|
|
|
|
|
|
|
|
|
|
General
and administrative |
|
|
721 |
|
|
|
222 |
|
|
|
|
|
|
721 |
|
|
|
222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
-more-
QUANTUM
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
Three Months Ended |
|
|
June 30, 2015 |
|
June 30, 2014 |
| Cash
flows from operating activities: |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(10,755 |
) |
|
$ |
(4,324 |
) |
| Adjustments to reconcile
net loss to net cash provided by (used in) |
|
|
|
|
|
|
|
|
| operating
activities: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
1,718 |
|
|
|
2,198 |
|
|
Amortization of intangible assets |
|
|
137 |
|
|
|
2,234 |
|
|
Amortization of debt issuance costs |
|
|
324 |
|
|
|
411 |
|
|
Service parts lower of cost or market adjustment |
|
|
1,146 |
|
|
|
1,154 |
|
|
Deferred income taxes |
|
|
38 |
|
|
|
(77 |
) |
|
Share-based compensation |
|
|
2,653 |
|
|
|
3,068 |
|
|
Gain on sale of assets |
|
|
- |
|
|
|
(462 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
26,830 |
|
|
|
11,140 |
|
|
Manufacturing inventories |
|
|
(63 |
) |
|
|
597 |
|
|
Service parts inventories |
|
|
(472 |
) |
|
|
(63 |
) |
|
Accounts payable |
|
|
(18,702 |
) |
|
|
(3,010 |
) |
|
Accrued warranty |
|
|
(619 |
) |
|
|
(218 |
) |
|
Deferred revenue |
|
|
(8,682 |
) |
|
|
(6,446 |
) |
|
Accrued restructuring charges |
|
|
(1,291 |
) |
|
|
(927 |
) |
|
Accrued compensation |
|
|
(1,062 |
) |
|
|
1,549 |
|
|
Other assets and liabilities |
|
|
(4,759 |
) |
|
|
(550 |
) |
| Net
cash provided by (used in) operating activities |
|
|
(13,559 |
) |
|
|
6,274 |
|
| |
| Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
| Purchases of property
and equipment |
|
|
(840 |
) |
|
|
(1,371 |
) |
| Proceeds from sale of
assets |
|
|
- |
|
|
|
462 |
|
| Change in restricted
cash |
|
|
(59 |
) |
|
|
(20 |
) |
| Net
cash used in investing activities |
|
|
(899 |
) |
|
|
(929 |
) |
| |
| Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
| Payment of taxes due
upon vesting of restricted stock |
|
|
(74 |
) |
|
|
(119 |
) |
| Proceeds from issuance
of common stock |
|
|
266 |
|
|
|
114 |
|
| Net
cash provided by (used in) financing activities |
|
|
192 |
|
|
|
(5 |
) |
| |
| Effect of exchange rate changes on cash and cash
equivalents |
|
|
3 |
|
|
|
(1 |
) |
| |
| Net
increase (decrease) in cash and cash equivalents |
|
|
(14,263 |
) |
|
|
5,339 |
|
| Cash
and cash equivalents at beginning of period |
|
|
67,948 |
|
|
|
99,125 |
|
| Cash
and cash equivalents at end of period |
|
$ |
53,685 |
|
|
$ |
104,464 |
|
-more-
QUANTUM
CORPORATION
GAAP TO NON-GAAP RECONCILIATION
(In thousands, except per share
amounts)
(Unaudited)
|
|
Three Months Ended June
30, 2015 |
|
|
Gross
Margin |
|
Gross
Margin
Rate |
|
Loss
From
Operations |
|
Operating
Margin |
|
Net Loss |
|
Per Share
Net
Loss,
Basic |
|
Per Share
Net
Loss,
Diluted |
| GAAP |
|
$ |
46,965 |
|
42.4 |
% |
|
$ |
(8,207 |
) |
|
(7.4 |
)% |
|
$ |
(10,755 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.04 |
) |
| Non-GAAP Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
137 |
|
|
|
|
|
137 |
|
|
|
|
|
|
137 |
|
|
|
|
|
|
|
|
|
| Share-based
compensation |
|
|
362 |
|
|
|
|
|
2,653 |
|
|
|
|
|
|
2,653 |
|
|
|
|
|
|
|
|
|
|
Restructuring charges |
|
|
- |
|
|
|
|
|
258 |
|
|
|
|
|
|
258 |
|
|
|
|
|
|
|
|
|
| Crossroads patent
litigation costs |
|
|
- |
|
|
|
|
|
721 |
|
|
|
|
|
|
721 |
|
|
|
|
|
|
|
|
|
| Non-GAAP |
|
$ |
47,464 |
|
42.8 |
% |
|
$ |
(4,438 |
) |
|
(4.0 |
)% |
|
$ |
(6,986 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.03 |
) |
| |
| |
|
Computation of basic and diluted net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
Non-GAAP |
|
Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(10,755 |
) |
|
$ |
(6,986 |
) |
| |
|
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
258,448 |
|
|
|
258,448 |
|
| |
| |
|
|
Three Months Ended
June 30, 2014 |
|
|
Gross
Margin |
|
Gross
Margin
Rate |
|
Income
(Loss)
From
Operations |
|
Operating
Margin |
|
Net
Income
(Loss) |
|
Per Share
Net
Income
(Loss), Basic |
|
Per Share
Net
Income
(Loss), Diluted |
| GAAP |
|
$ |
55,526 |
|
43.3 |
% |
|
$ |
(1,507 |
) |
|
(1.2 |
)% |
|
$ |
(4,324 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
| Non-GAAP Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
378 |
|
|
|
|
|
2,234 |
|
|
|
|
|
|
2,234 |
|
|
|
|
|
|
|
|
|
| Share-based
compensation |
|
|
414 |
|
|
|
|
|
3,068 |
|
|
|
|
|
|
3,068 |
|
|
|
|
|
|
|
|
|
|
Restructuring charges |
|
|
- |
|
|
|
|
|
865 |
|
|
|
|
|
|
865 |
|
|
|
|
|
|
|
|
|
| Outsourcing transition
costs |
|
|
126 |
|
|
|
|
|
126 |
|
|
|
|
|
|
126 |
|
|
|
|
|
|
|
|
|
|
Proxy contest and related costs |
|
|
- |
|
|
|
|
|
188 |
|
|
|
|
|
|
188 |
|
|
|
|
|
|
|
|
|
| Crossroads patent
litigation costs |
|
|
- |
|
|
|
|
|
222 |
|
|
|
|
|
|
222 |
|
|
|
|
|
|
|
|
|
| Non-GAAP |
|
$ |
56,444 |
|
44.1 |
% |
|
$ |
5,196 |
|
|
4.1 |
% |
|
$ |
2,379 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
| |
|
Computation of basic and diluted net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
Non-GAAP |
|
Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(4,324 |
) |
|
$ |
2,379 |
|
| |
|
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
250,666 |
|
|
|
250,666 |
|
|
Dilutive shares from stock plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
2,681 |
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
250,666 |
|
|
|
253,347 |
|
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-
QUANTUM
CORPORATION
FORECAST SECOND QUARTER FISCAL 2016
GAAP TO NON-GAAP
RECONCILIATION
(Dollars in
millions)
|
|
Percentage Range |
| Forecast gross margin rate on a GAAP
basis |
|
|
41.7% |
- |
|
42.7 |
% |
| Forecast share-based compensation |
|
|
|
|
0.3% |
|
|
|
| Forecast gross margin rate on a non-GAAP
basis |
|
|
42.0% |
- |
|
43.0 |
% |
| |
| |
|
Dollar Range |
| Forecast operating expense on a GAAP
basis |
|
$ |
54.8 |
|
- |
$ |
56.8 |
|
| Forecast share-based compensation |
|
|
|
|
(2.5) |
|
|
|
| Forecast Crossroads patent litigation
costs |
|
|
|
|
(0.3) |
|
|
|
| Forecast operating expense on a non-GAAP basis |
|
$ |
52.0 |
|
- |
$ |
54.0 |
|
Estimates based on current
(July 30, 2015) 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 12, 2015. 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.
-end-