SAN JOSE, Calif., Oct. 26, 2016 /PRNewswire/ -- Quantum Corp.
(NYSE: QTM) today reported results for the fiscal second quarter
2017 ended Sept. 30, 2016 (all
comparisons are relative to the fiscal second quarter 2016 unless
otherwise stated)1:
- Total revenue was $134.7 million,
an increase of $17.7 million.
- Scale-out storage revenue grew to a record $46.7 million, up from $29.9 million and the 21st consecutive
quarter of year-over-year growth.
- Total data protection revenue was flat at $78.5 million, consisting of $18.7 million in disk backup systems revenue (up
3 percent), $45.2 million in tape
automation revenue (down 7 percent) and $14.6 million in devices and media revenue (up 26
percent).
- Royalty revenue was $9.5 million,
an increase of 9 percent.
- GAAP gross margin was 41.2 percent, and non-GAAP2
gross margin was 41.4 percent, up from 39.6 percent and 39.9
percent, respectively.
- GAAP operating income was $5.3
million, and non-GAAP operating income was $7.5 million, an improvement of $15.0 million and $13.3
million, respectively.
- GAAP net income was $3.8 million,
or $0.01 per diluted share, and
non-GAAP net income was $6.0 million,
or $0.02 per diluted share. This
represented an improvement of $0.05
per diluted share on both a GAAP and non-GAAP basis.
"We began this fiscal year with a clear focus on delivering
solid growth and profitability, and our results in the first two
quarters demonstrate our strong execution and increasing momentum,"
said Jon Gacek, president and CEO of
Quantum. "For the first half of the fiscal year, we've increased
total revenue by $23 million over the
same period last year, growing scale-out storage by 34 percent and
data protection — where the market remains challenging — by 3
percent. On this $23 million of
additional revenue, we've improved net income by more than
$20 million, reflecting the
significant leverage our financial model provides as we grow.
"As we start the second half of fiscal 2017, we're focused on
continuing to drive scale-out storage growth by further extending
our media and entertainment leadership and expanding our footprint
in video surveillance and in technical workflows with large
unstructured data archive needs. For data protection, we're
continuing to leverage our technology leadership, extensive
customer base, and channel and technology partnerships to generate
profit and cash."
Fiscal Third Quarter 2017 Outlook
Quantum provided the following guidance for the fiscal third
quarter:
- Total revenue of $125 million to $130
million.
- GAAP and non-GAAP gross margin of 41-43 percent.
- GAAP and non-GAAP operating expenses of $49 million to $51 million and $47 million to $49 million, respectively.
- Interest expense of $2.4 million
and taxes of $400,000.
- GAAP loss per share of $0.01 to
GAAP earnings per share of $0.01 and
non-GAAP earnings per share of $0.00 to
$0.02.
Fiscal Second Quarter 2017 Business Highlights
Quantum announced a new media reference architecture for animation
and visual effects workflows that is built on the company's
award-winning Xcellis™ high-performance storage. This architecture
overcomes the time- and resource-consuming challenge of
transferring content between animation and editorial departments
over a network by optimizing storage capabilities for both
operations in a single shared environment, thereby streamlining
workflows and boosting overall efficiency and productivity.
- The company introduced the DXi6900-S, the first deduplication
appliance to incorporate 8TB self-encrypting drives, delivering the
highest density backup available and enabling customers to reduce
power consumption by 50 percent, compared to competing
deduplication appliances. It also integrates the latest SSD
technology to provide metadata storage and access. As a result, the
DXi6900-S dramatically speeds ingest, read, replication and space
reclamation performance, allowing users to complete all these tasks
several times faster than with previous DXi® systems and
numerous competitive products.
- Continuing to expand its ecosystem partnerships in video
surveillance, Quantum announced joint development initiatives with
four industry-leading Video Management System (VMS) providers —
Aimetis Corp., On-Net Surveillance Systems Inc. (OnSSI), Qognify
and Verint Systems Inc. Under the initiatives, these partners have
certified interoperability with Quantum multi-tier storage
offerings, including StorNext 5 data management and QXS™ hybrid
storage, ensuring that users have access to thoroughly tested and
integrated storage solutions suited to their unique
environment.
- Key scale-out storage customer wins included million
dollar-plus deals with a major media company for a multi-faceted
project and a global consumer electronics company for corporate
video, as well as large deals with a leading car company using
video surveillance in its manufacturing facility and a solar
company that uses surveillance for product line quality control.
Other notable scale-out storage wins included large deals involving
technical workflows and management of unstructured data archives at
a U.S. military agency, an electric power administrator and a
global laboratory testing services provider.
- In data protection, major customer wins included million
dollar-plus deals at a European banking IT support operation, a
large supermarket chain and a U.S. government department, with the
first two involving Quantum's new DXi6900-S deduplication
appliance.
Conference Call and Audio Webcast Notification
Quantum will hold a conference call today, Oct. 26, 2016, at 2:00
p.m. PDT to discuss its fiscal second quarter results. Press
and industry analysts are invited to attend in listen-only
mode.
Dial-in number: +1 (503) 343-6063
Participant passcode: 94619494
Replay number: +1 (404) 537-3406
Replay passcode: 94619494
Replay expiration: Wednesday, Nov. 2,
2016
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. 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, DXi, QXS, 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) our current focuses and priorities; and
ii) all of our statements under the heading titled "Fiscal Third
Quarter 2017 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
3, 2016 and in Quantum's Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on August 5, 2016. 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 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.
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. 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.
1 Revenue figures for scale-out storage, data
protection, disk backup systems and tape automation include related
service revenue.
2 A reconciliation of GAAP to non-GAAP financial
measures is included in the accompanying tables. Historical data on
non-GAAP items is available in the company's supplemental financial
information posted on its website.
Contact:
Brad Cohen
Public Relations
Quantum Corp.
+1 (408) 944-4044
brad.cohen@quantum.com
Brinlea Johnson or Allise Furlani
Investor Relations
The Blueshirt Group
+1 (212) 331-8424 or +1 (212) 331-8433
brinlea@blueshirtgroup.com or allise@blueshirtgroup.com
QUANTUM
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
thousands)
(Unaudited)
|
|
|
September 30,
2016
|
|
March 31,
2016*
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
29,528
|
|
|
$
|
33,870
|
|
Restricted
cash
|
2,801
|
|
|
2,788
|
|
Accounts
receivable
|
107,910
|
|
|
105,959
|
|
Manufacturing
inventories
|
36,242
|
|
|
40,614
|
|
Service parts
inventories
|
20,422
|
|
|
21,407
|
|
Other current
assets
|
6,967
|
|
|
6,953
|
|
Total current
assets
|
203,870
|
|
|
211,591
|
|
Long-term
assets:
|
|
|
|
Property and
equipment
|
12,353
|
|
|
12,939
|
|
Intangible
assets
|
355
|
|
|
451
|
|
Other long-term
assets
|
4,320
|
|
|
4,565
|
|
Total long-term
assets
|
17,028
|
|
|
17,955
|
|
|
$
|
220,898
|
|
|
$
|
229,546
|
|
Liabilities and
Stockholders' Deficit
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
50,859
|
|
|
$
|
46,136
|
|
Accrued
warranty
|
3,371
|
|
|
3,430
|
|
Deferred revenue,
current
|
82,421
|
|
|
88,919
|
|
Accrued restructuring
charges, current
|
1,784
|
|
|
1,621
|
|
Long-term debt,
current
|
—
|
|
|
3,000
|
|
Accrued
compensation
|
23,806
|
|
|
22,744
|
|
Other accrued
liabilities
|
11,510
|
|
|
13,806
|
|
Total current
liabilities
|
173,751
|
|
|
179,656
|
|
Long-term
liabilities:
|
|
|
|
Deferred revenue,
long-term
|
32,763
|
|
|
35,427
|
|
Accrued restructuring
charges, long-term
|
734
|
|
|
1,116
|
|
Long-term
debt
|
60,250
|
|
|
62,709
|
|
Convertible
subordinated debt, long-term
|
69,483
|
|
|
69,253
|
|
Other long-term
liabilities
|
7,340
|
|
|
8,324
|
|
Total long-term
liabilities
|
170,570
|
|
|
176,829
|
|
Stockholders'
deficit
|
(123,423)
|
|
|
(126,939)
|
|
|
$
|
220,898
|
|
|
$
|
229,546
|
|
|
* Derived from
the March 31, 2016 audited Consolidated Financial
Statements.
|
QUANTUM
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
September 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Revenue:
|
|
|
|
|
|
|
|
Product
|
$
|
88,575
|
|
|
$
|
71,057
|
|
|
$
|
160,401
|
|
|
$
|
133,776
|
|
Service
|
36,620
|
|
|
37,247
|
|
|
72,438
|
|
|
75,186
|
|
Royalty
|
9,547
|
|
|
8,721
|
|
|
18,187
|
|
|
18,919
|
|
Total
revenue
|
134,742
|
|
|
117,025
|
|
|
251,026
|
|
|
227,881
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Product
|
64,352
|
|
|
53,073
|
|
|
114,484
|
|
|
100,037
|
|
Service
|
14,910
|
|
|
17,635
|
|
|
30,691
|
|
|
34,562
|
|
Total cost of
revenue
|
79,262
|
|
|
70,708
|
|
|
145,175
|
|
|
134,599
|
|
Gross
margin
|
55,480
|
|
|
46,317
|
|
|
105,851
|
|
|
93,282
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
11,401
|
|
|
13,370
|
|
|
22,459
|
|
|
26,693
|
|
Sales and
marketing
|
26,146
|
|
|
28,043
|
|
|
52,513
|
|
|
55,648
|
|
General and
administrative
|
12,572
|
|
|
14,136
|
|
|
25,532
|
|
|
28,122
|
|
Restructuring
charges
|
15
|
|
|
387
|
|
|
2,067
|
|
|
645
|
|
Total operating
expenses
|
50,134
|
|
|
55,936
|
|
|
102,571
|
|
|
111,108
|
|
Income (loss)
from operations
|
5,346
|
|
|
(9,619)
|
|
|
3,280
|
|
|
(17,826)
|
|
Other
income
|
10
|
|
|
714
|
|
|
166
|
|
|
428
|
|
Interest
expense
|
(1,485)
|
|
|
(1,975)
|
|
|
(2,993)
|
|
|
(3,898)
|
|
Income (loss) before
income taxes
|
3,871
|
|
|
(10,880)
|
|
|
453
|
|
|
(21,296)
|
|
Income tax
provision
|
45
|
|
|
347
|
|
|
422
|
|
|
686
|
|
Net income
(loss)
|
$
|
3,826
|
|
|
$
|
(11,227)
|
|
|
$
|
31
|
|
|
$
|
(21,982)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per share
|
$
|
0.01
|
|
|
$
|
(0.04)
|
|
|
$
|
0.00
|
|
|
$
|
(0.08)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
270,432
|
|
|
263,058
|
|
|
268,396
|
|
|
260,766
|
|
Diluted
|
272,382
|
|
|
263,058
|
|
|
269,593
|
|
|
260,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in the above
Statements of Operations:
|
|
|
|
|
|
|
|
Amortization of
intangibles:
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
|
48
|
|
|
$
|
48
|
|
|
$
|
96
|
|
|
$
|
185
|
|
|
48
|
|
|
48
|
|
|
96
|
|
|
185
|
|
Share-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
234
|
|
|
331
|
|
|
514
|
|
|
693
|
|
Research and
development
|
333
|
|
|
492
|
|
|
736
|
|
|
1,041
|
|
Sales and
marketing
|
606
|
|
|
839
|
|
|
1,218
|
|
|
1,709
|
|
General and
administrative
|
477
|
|
|
785
|
|
|
1,180
|
|
|
1,657
|
|
|
1,650
|
|
|
2,447
|
|
|
3,648
|
|
|
5,100
|
|
Proxy contest and
related costs:
|
|
|
|
|
|
|
|
General and
administrative
|
304
|
|
|
—
|
|
|
349
|
|
|
—
|
|
|
304
|
|
|
—
|
|
|
349
|
|
|
—
|
|
Crossroads patent
litigation costs:
|
|
|
|
|
|
|
|
General and
administrative
|
128
|
|
|
919
|
|
|
140
|
|
|
1,640
|
|
|
$
|
128
|
|
|
$
|
919
|
|
|
$
|
140
|
|
|
$
|
1,640
|
|
|
|
|
|
|
|
|
|
QUANTUM
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
Six Months
Ended
|
|
September 30,
2016
|
|
September 30,
2015
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
|
31
|
|
|
$
|
(21,982)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
Depreciation
|
2,710
|
|
|
3,361
|
|
Amortization of
intangible assets
|
96
|
|
|
185
|
|
Amortization of debt
issuance costs
|
336
|
|
|
648
|
|
Service parts lower
of cost or market adjustment
|
2,659
|
|
|
3,050
|
|
Deferred income
taxes
|
17
|
|
|
35
|
|
Share-based
compensation
|
3,648
|
|
|
5,100
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
(1,951)
|
|
|
31,896
|
|
Manufacturing
inventories
|
2,429
|
|
|
10,050
|
|
Service parts
inventories
|
(766)
|
|
|
(526)
|
|
Accounts
payable
|
4,875
|
|
|
1,624
|
|
Accrued
warranty
|
(59)
|
|
|
(746)
|
|
Deferred
revenue
|
(9,162)
|
|
|
(16,429)
|
|
Accrued restructuring
charges
|
(219)
|
|
|
(2,017)
|
|
Accrued
compensation
|
1,049
|
|
|
(10,871)
|
|
Other assets and
liabilities
|
(3,112)
|
|
|
(5,723)
|
|
Net cash provided by
(used in) operating activities
|
2,581
|
|
|
(2,345)
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(1,249)
|
|
|
(1,611)
|
|
Change in restricted
cash
|
(5)
|
|
|
(110)
|
|
Net cash used in
investing activities
|
(1,254)
|
|
|
(1,721)
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings of
long-term debt, net
|
6,300
|
|
|
—
|
|
Repayments of
long-term debt
|
(11,959)
|
|
|
—
|
|
Restricted cash used
to repay convertible subordinated debt
|
—
|
|
|
(16,280)
|
|
Payment of taxes due
upon vesting of restricted stock
|
(673)
|
|
|
(3,101)
|
|
Proceeds from
issuance of common stock
|
658
|
|
|
1,740
|
|
Net cash used in
financing activities
|
(5,674)
|
|
|
(17,641)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
5
|
|
|
(12)
|
|
Net decrease in cash
and cash equivalents
|
(4,342)
|
|
|
(21,719)
|
|
Cash and cash
equivalents at beginning of period
|
33,870
|
|
|
67,948
|
|
Cash and cash
equivalents at end of period
|
$
|
29,528
|
|
|
$
|
46,229
|
|
QUANTUM
CORPORATION
GAAP TO NON-GAAP
RECONCILIATION
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
Three Months Ended
September 30, 2016
|
|
Gross
Margin
|
|
Gross
Margin
Rate
|
|
Income
From
Operations
|
|
Operating
Margin
|
|
Net
Income
|
|
Per Share
Net Income,
Basic
|
|
Per Share
Net Income,
Diluted
|
GAAP
|
$
|
55,480
|
|
|
41.2
|
%
|
|
$
|
5,346
|
|
|
4.0
|
%
|
|
$
|
3,826
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
Non-GAAP Reconciling
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
|
Share-based
compensation
|
234
|
|
|
|
|
1,650
|
|
|
|
|
1,650
|
|
|
|
|
|
Restructuring
charges
|
—
|
|
|
|
|
15
|
|
|
|
|
15
|
|
|
|
|
|
Proxy contest and
related costs
|
—
|
|
|
|
|
304
|
|
|
|
|
304
|
|
|
|
|
|
Crossroads patent
litigation costs
|
—
|
|
|
|
|
128
|
|
|
|
|
128
|
|
|
|
|
|
Non-GAAP
|
$
|
55,762
|
|
|
41.4
|
%
|
|
$
|
7,491
|
|
|
5.6
|
%
|
|
$
|
5,971
|
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net income per share:
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
Net
income
|
|
|
|
|
|
|
|
|
|
|
$
|
3,826
|
|
|
$
|
5,971
|
|
Interest of dilutive
convertible notes
|
|
|
|
|
|
|
|
—
|
|
|
902
|
|
Income for purposes
of computing income per diluted share
|
|
|
|
|
|
$
|
3,826
|
|
|
$
|
6,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
270,432
|
|
|
270,432
|
|
Dilutive shares
from stock plans
|
|
|
|
|
|
|
|
1,950
|
|
|
1,950
|
|
Dilutive shares
from convertible notes
|
|
|
|
|
|
|
|
—
|
|
|
42,502
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
272,382
|
|
|
314,884
|
|
|
|
Six Months Ended
September 30, 2016
|
|
Gross
Margin
|
|
Gross
Margin
Rate
|
|
Income
From
Operations
|
|
Operating
Margin
|
|
Net
Income
|
|
Per Share
Net Income,
Basic
|
|
Per Share
Net Income,
Diluted
|
GAAP
|
$
|
105,851
|
|
|
42.2
|
%
|
|
$
|
3,280
|
|
|
1.3
|
%
|
|
$
|
31
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
Non-GAAP Reconciling
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
96
|
|
|
|
|
96
|
|
|
|
|
96
|
|
|
|
|
|
Share-based
compensation
|
514
|
|
|
|
|
3,648
|
|
|
|
|
3,648
|
|
|
|
|
|
Restructuring
charges
|
—
|
|
|
|
|
2,067
|
|
|
|
|
2,067
|
|
|
|
|
|
Proxy contest and
related costs
|
—
|
|
|
|
|
349
|
|
|
|
|
349
|
|
|
|
|
|
Crossroads patent
litigation costs
|
—
|
|
|
|
|
140
|
|
|
|
|
140
|
|
|
|
|
|
Non-GAAP
|
$
|
106,461
|
|
|
42.4
|
%
|
|
$
|
9,580
|
|
|
3.8
|
%
|
|
$
|
6,331
|
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net income per share:
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
Net
income
|
|
|
|
|
|
|
|
|
|
|
$
|
31
|
|
|
$
|
6,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
268,396
|
|
|
268,396
|
|
Dilutive shares
from stock plans
|
|
|
|
|
|
|
|
1,197
|
|
|
1,197
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
269,593
|
|
|
269,593
|
|
|
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
GAAP TO NON-GAAP
RECONCILIATION
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
Three Months Ended
September 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
|
$
|
46,317
|
|
|
39.6
|
%
|
|
$
|
(9,619)
|
|
|
(8.2)%
|
|
|
$
|
(11,227)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.04)
|
|
Non-GAAP Reconciling
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
|
Share-based
compensation
|
331
|
|
|
|
|
2,447
|
|
|
|
|
2,447
|
|
|
|
|
|
Restructuring
charges
|
—
|
|
|
|
|
387
|
|
|
|
|
387
|
|
|
|
|
|
Crossroads patent
litigation costs
|
—
|
|
|
|
|
919
|
|
|
|
|
919
|
|
|
|
|
|
Non-GAAP
|
$
|
46,696
|
|
|
39.9
|
%
|
|
$
|
(5,818)
|
|
|
(5.0)%
|
|
|
$
|
(7,426)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net loss per share:
|
|
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
Net
loss
|
|
|
|
|
|
|
|
|
|
|
$
|
(11,227)
|
|
|
$
|
(7,426)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted
|
|
|
|
|
|
|
|
|
|
|
263,058
|
|
|
263,058
|
|
|
|
Six Months Ended
September 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
|
$
|
93,282
|
|
|
40.9
|
%
|
|
$
|
(17,826)
|
|
|
(7.8)%
|
|
|
$
|
(21,982)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.08)
|
|
Non-GAAP Reconciling
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
185
|
|
|
|
|
185
|
|
|
|
|
185
|
|
|
|
|
|
Share-based
compensation
|
693
|
|
|
|
|
5,100
|
|
|
|
|
5,100
|
|
|
|
|
|
Restructuring
charges
|
—
|
|
|
|
|
645
|
|
|
|
|
645
|
|
|
|
|
|
Crossroads patent
litigation costs
|
—
|
|
|
|
|
1,640
|
|
|
|
|
1,640
|
|
|
|
|
|
Non-GAAP
|
$
|
94,160
|
|
|
41.3
|
%
|
|
$
|
(10,256)
|
|
|
(4.5)%
|
|
|
$
|
(14,412)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net loss per share:
|
|
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
$
|
(21,982)
|
|
|
$
|
(14,412)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
|
|
260,766
|
|
|
260,766
|
|
|
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 THIRD
QUARTER FISCAL 2017
GAAP TO NON-GAAP
RECONCILIATION
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
Percentage
Range
|
Forecast gross
margin rate on a GAAP basis
|
40.8
|
%
|
—
|
42.8
|
%
|
Forecast share-based
compensation
|
0.2
|
%
|
|
|
Forecast gross
margin rate on a non-GAAP basis
|
41.0
|
%
|
—
|
43.0
|
%
|
|
|
|
|
|
Dollar
Range
|
Forecast operating
expense on a GAAP basis
|
$
|
48.6
|
|
—
|
$
|
50.6
|
|
Forecast share-based
compensation
|
|
|
(1.4)
|
|
|
|
Forecast Crossroads
patent litigation costs
|
|
(0.2)
|
|
|
|
Forecast operating
expense on a non-GAAP basis
|
$
|
47.0
|
|
—
|
$
|
49.0
|
|
|
|
|
|
|
Dollars per
Share
|
Forecast diluted
earnings per share on a GAAP basis
|
$
|
(0.01)
|
|
—
|
$
|
0.01
|
|
Forecast share-based
compensation
|
|
|
0.01
|
|
|
|
Forecast Crossroads
patent litigation costs
|
|
|
0.00
|
|
|
|
Forecast diluted
earnings per share on a non-GAAP basis
|
$
|
0.00
|
|
—
|
$
|
0.02
|
|
|
|
|
|
Estimates based on
current (October 26, 2016) 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 June 3, 2016, as amended by Amendment
No. 1 to Form 10-K, filed with the SEC on July 27, 2016 (together,
the "Form 10-K"). 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.
|
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SOURCE Quantum Corp.