SAN JOSE, Calif., July 27, 2016 /PRNewswire/ -- Quantum Corp.
(NYSE: QTM) today reported results for the fiscal first quarter
2017 ended June 30, 2016 (all
comparisons are relative to the fiscal first quarter 2016)[1]:
- Total revenue was $116.3 million,
an increase of $5.4 million.
- Scale-out storage revenue grew to $30.8
million, up from $27.8
million.
- Total data protection revenue increased to $76.9 million, consisting of $21.5 million in disk backup systems revenue (up
24 percent), $42.6 million in tape
automation revenue (down 4 percent) and $12.8 million in devices and media revenue (up 17
percent).
- Royalty revenue was $8.6 million,
a decline of $1.6 million.
- Quantum reported a GAAP operating loss of $2.1 million and non-GAAP[2] operating income of
$2.1 million, an improvement of
$6.1 million and $6.5 million, respectively.
- The GAAP net loss was $3.8
million, or $0.01 per diluted
share, and non-GAAP net income was $360,000, or $0.00
per diluted share. This represented an improvement of $0.03 per diluted share on both a GAAP and
non-GAAP basis.
- The company generated $5.2
million in cash from operations, in contrast to using
$13.6 million in cash in the
comparable quarter a year ago.
"We're very pleased with our first quarter results, as we
delivered year-over-year revenue growth, with strong contributions
from both our scale-out storage and data protection product lines,"
said Jon Gacek, president and CEO of
Quantum. "In scale-out storage, we continued to build on our
momentum, securing major wins across our priority vertical markets
and use cases and further expanding the addressable markets where
our scale-out storage solutions offer unique value. For example, in
April we announced a large public cloud, scale-out storage win,
which we expected to generate $10
million in total revenue for the year. That opportunity has
since expanded, and we now expect the resulting revenue
contributions — which started in the first quarter — to total at
least $20 million for the year.
"On the data protection side of our business, we closed a
multi-million dollar DXi® deduplication deal and
capitalized on a more stable tape backup market, where we are a
long-standing leader. We also significantly improved our bottom
line performance, as we continued to benefit from the cost
reductions and operational changes we implemented over the previous
six months, which further strengthened our business model and the
leverage it provides.
"In short, we had a strong start to fiscal 2017, and we're
focused on building on our momentum to drive continued growth,
profitability and cash flow. Based on our first quarter results, we
have increased confidence in our ability to meet the full year
guidance we provided on our May earnings call."
Fiscal Second Quarter 2017 Outlook
Quantum provided the following guidance for the fiscal second
quarter:
- Total revenue of $118 million to $122
million.
- GAAP and non-GAAP gross margin of 41-42 percent.
- GAAP and non-GAAP operating expenses of $50 million to $51 million and $48 million to $49 million, respectively.
- Interest expense of $1.5 million
and taxes of $400,000.
- GAAP and non-GAAP loss per share of $0.01 to $0.00.
Finally, Quantum CFO Fuad Ahmad
provided an update on the company's refinancing activities.
"We are in discussions with a number of financial institutions
regarding expanding our credit line to provide sufficient near- and
long-term liquidity and to create a clear and executable roadmap to
address our convertible notes due November
2017," said Ahmad. "We've received strong indications of
interest from two different lending sources, each of which has
provided preliminary terms that, if successfully executed in a
definitive agreement, not only would provide substantial additional
liquidity but also should alleviate any perceived market risks
related to the convertible notes."
Fiscal First Quarter 2017 Business Highlights
- Quantum introduced three new reference architectures for video
surveillance and security environments. These architectures address
the storage challenges presented by new fixed cameras, expansions
of existing security systems, and law enforcement implementations.
They are based on the company's unique tiered storage approach
which provides the performance, capacity and accessibility that are
essential in meeting today's increasing demands for managing
surveillance data.
- The company announced that Avid® has developed a
connector for its Interplay® | MAM system and Quantum's
StorNext Storage Manager™ that enables seamless integration of
Quantum archive storage systems into Avid media environments. As a
result, media and entertainment customers now have the ability to
access and control StorNext® archive and restore
functions through Interplay | MAM, including automated movement of
content across different archive storage tiers. This solution
provides more intelligent, long-term content management, faster
access to a nearline archive tier via standard network protocols
and better protection of Avid projects with an archive
strategy.
- Lab testing by Enterprise Strategy Group, an independent
analyst firm, confirmed that Quantum's Artico™ active archive
appliance offers a simple-to-configure-and-manage tiered archive
that is easily integrated into existing workflows. ESG Lab
demonstrated that Artico works with tape, object storage and cloud
repositories while its policy-based data management enables data
movement, protection and resiliency, retention and encryption. ESG
also affirmed that Artico's NAS connectivity makes it easy to
integrate and that its automated tiered storage engine makes it
transparent to archive data on demand.
- Komprise Inc. and Quantum announced a joint solution which
enables organizations to seamlessly integrate archive storage into
their active workflows to cope with exponential data growth under
tight budgets. The combination of Komprise data management software
and services with Quantum Lattus® object storage or
Artico active archive solutions delivers scalable capacity and
automated data movement without disrupting users or
applications.
Conference Call and Audio Webcast Notification
Quantum will hold a conference call today, July 27, 2016, 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: 1-503-343-6063 (U.S. and International); access
code: 50251682
Replay number: 1-404-537-3406 (U.S. and International); access
code: 50251682
Replay expiration: Aug. 3,
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, Artico, DXi, Lattus, StorNext and
StorNext Storage Manager 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 expectation that a large public
cloud, scale-out storage win will result in revenue of at least
$20 million for the year; ii) our
focus on building on our momentum to drive continued growth,
profitability and cash flow, our increased confidence in our
ability to meet our full year guidance; iii) all of our statements
under the heading titled "Fiscal Second Quarter 2017 Outlook"; and
iv) our statements regarding our refinancing activities, 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.
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.
Important Information
Quantum Corp. ("Quantum"), will file with the Securities and
Exchange Commission ("SEC") and provide to its stockholders a proxy
statement in connection with its 2016 annual meeting. STOCKHOLDERS
ARE URGED TO READ THIS PROXY STATEMENT, THE ACCOMPANYING WHITE
PROXY CARD AND OTHER RELEVANT DOCUMENTS FILED BY QUANTUM WITH THE
SEC IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. Stockholders will be able to obtain
free copies of these documents through the website maintained by
the SEC at http://www.sec.gov and through the website maintained by
Quantum at http://www.quantum.com or by directing a request to
Quantum Corporation, Attn: Investor Relations, 224 Airport Parkway,
Suite 300, San Jose, California
95110.
Certain Information Regarding Participants
Quantum, its directors and certain of its officers and other
employees may be deemed to be participants in the solicitation of
Quantum's stockholders in connection with its 2016 annual meeting.
Information regarding the names, affiliations and direct and
indirect interests (by security holdings or otherwise) of such
participants can be found in Quantum's 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"). To the extent holdings of Quantum's securities by such
persons have changed since the amounts printed in the Form 10-K,
such changes have been or will be reflected on Initial Statements
of Beneficial Ownership on Form 3 or on Statements of Change in
Ownership on Form 4 filed with the SEC.
More detailed information regarding the identity of potential
participants, and their direct or indirect interests, by security
holdings or otherwise, will be set forth in the proxy statement and
other materials to be filed with the SEC in connection with
Quantum's 2016 Annual Meeting. Stockholders will be able to obtain
a free copy of the proxy statement and other documents filed by
Quantum with the SEC through the website maintained by the SEC at
http://www.sec.gov and through the website maintained by Quantum at
http://www.quantum.com or by directing a request to Quantum
Corporation, Attn: Investor Relations, 224 Airport Parkway, Suite
300, San Jose, California
95110.
[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)
|
|
|
June 30,
2016
|
|
March 31,
2016*
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
34,496
|
|
|
$
|
33,870
|
|
Restricted
cash
|
2,782
|
|
|
2,788
|
|
Accounts
receivable
|
90,533
|
|
|
105,959
|
|
Manufacturing
inventories
|
36,197
|
|
|
40,614
|
|
Service parts
inventories
|
20,649
|
|
|
21,407
|
|
Other current
assets
|
7,106
|
|
|
6,953
|
|
Total current
assets
|
191,763
|
|
|
211,591
|
|
Long-term
assets:
|
|
|
|
Property and
equipment
|
12,172
|
|
|
12,939
|
|
Intangible
assets
|
403
|
|
|
451
|
|
Other long-term
assets
|
4,412
|
|
|
4,565
|
|
Total long-term
assets
|
16,987
|
|
|
17,955
|
|
|
$
|
208,750
|
|
|
$
|
229,546
|
|
Liabilities and
Stockholders' Deficit
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
37,593
|
|
|
$
|
46,136
|
|
Accrued
warranty
|
3,444
|
|
|
3,430
|
|
Deferred revenue,
current
|
86,638
|
|
|
88,919
|
|
Accrued restructuring
charges, current
|
2,516
|
|
|
1,621
|
|
Long-term debt,
current
|
300
|
|
|
3,000
|
|
Accrued
compensation
|
23,265
|
|
|
22,744
|
|
Other accrued
liabilities
|
10,794
|
|
|
13,806
|
|
Total current
liabilities
|
164,550
|
|
|
179,656
|
|
Long-term
liabilities:
|
|
|
|
Deferred revenue,
long-term
|
33,282
|
|
|
35,427
|
|
Accrued restructuring
charges, long-term
|
947
|
|
|
1,116
|
|
Long-term
debt
|
61,450
|
|
|
62,709
|
|
Convertible
subordinated debt, long-term
|
69,368
|
|
|
69,253
|
|
Other long-term
liabilities
|
8,213
|
|
|
8,324
|
|
Total long-term
liabilities
|
173,260
|
|
|
176,829
|
|
Stockholders'
deficit
|
(129,060)
|
|
|
(126,939)
|
|
|
$
|
208,750
|
|
|
$
|
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
|
|
June 30,
2016
|
|
June 30,
2015
|
Revenue:
|
|
|
|
Product
|
$
|
71,826
|
|
|
$
|
62,719
|
|
Service
|
35,818
|
|
|
37,939
|
|
Royalty
|
8,640
|
|
|
10,198
|
|
Total
revenue
|
116,284
|
|
|
110,856
|
|
Cost of
revenue:
|
|
|
|
Product
|
50,132
|
|
|
46,964
|
|
Service
|
15,781
|
|
|
16,927
|
|
Total cost of
revenue
|
65,913
|
|
|
63,891
|
|
Gross
margin
|
50,371
|
|
|
46,965
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
11,058
|
|
|
13,323
|
|
Sales and
marketing
|
26,367
|
|
|
27,605
|
|
General and
administrative
|
12,960
|
|
|
13,986
|
|
Restructuring
charges
|
2,052
|
|
|
258
|
|
Total operating
expenses
|
52,437
|
|
|
55,172
|
|
Loss from
operations
|
(2,066)
|
|
|
(8,207)
|
|
Other income and
expense
|
156
|
|
|
(286)
|
|
Interest
expense
|
(1,508)
|
|
|
(1,923)
|
|
Loss before
income taxes
|
(3,418)
|
|
|
(10,416)
|
|
Income tax
provision
|
377
|
|
|
339
|
|
Net
loss
|
$
|
(3,795)
|
|
|
$
|
(10,755)
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
|
(0.01)
|
|
|
$
|
(0.04)
|
|
|
|
|
|
Weighted average
basic and diluted shares
|
266,337
|
|
|
258,448
|
|
|
|
|
|
|
|
Included in the above
Statements of Operations:
|
|
|
|
Amortization of
intangibles:
|
|
|
|
Cost of
revenue
|
$
|
48
|
|
|
$
|
137
|
|
|
48
|
|
|
137
|
|
Share-based
compensation:
|
|
|
|
Cost of
revenue
|
280
|
|
|
362
|
|
Research and
development
|
403
|
|
|
549
|
|
Sales and
marketing
|
612
|
|
|
870
|
|
General and
administrative
|
703
|
|
|
872
|
|
|
1,998
|
|
|
2,653
|
|
Proxy contest and
related costs:
|
|
|
|
General and
administrative
|
45
|
|
|
—
|
|
|
45
|
|
|
—
|
|
Crossroads patent
litigation costs:
|
|
|
|
General and
administrative
|
12
|
|
|
721
|
|
|
$
|
12
|
|
|
$
|
721
|
|
|
|
|
|
QUANTUM
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
Three Months
Ended
|
|
June 30,
2016
|
|
June 30,
2015
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(3,795)
|
|
|
$
|
(10,755)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
Depreciation
|
1,383
|
|
|
1,718
|
|
Amortization of
intangible assets
|
48
|
|
|
137
|
|
Amortization of debt
issuance costs
|
168
|
|
|
324
|
|
Service parts lower
of cost or market adjustment
|
1,337
|
|
|
1,146
|
|
Deferred income
taxes
|
75
|
|
|
38
|
|
Share-based
compensation
|
1,998
|
|
|
2,653
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
15,426
|
|
|
26,830
|
|
Manufacturing
inventories
|
3,686
|
|
|
(63)
|
|
Service parts
inventories
|
(124)
|
|
|
(472)
|
|
Accounts
payable
|
(8,364)
|
|
|
(18,702)
|
|
Accrued
warranty
|
14
|
|
|
(619)
|
|
Deferred
revenue
|
(4,426)
|
|
|
(8,682)
|
|
Accrued restructuring
charges
|
726
|
|
|
(1,291)
|
|
Accrued
compensation
|
580
|
|
|
(1,062)
|
|
Other assets and
liabilities
|
(3,571)
|
|
|
(4,759)
|
|
Net cash provided by
(used in) operating activities
|
5,161
|
|
|
(13,559)
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(529)
|
|
|
(840)
|
|
Change in restricted
cash
|
(15)
|
|
|
(59)
|
|
Net cash used in
investing activities
|
(544)
|
|
|
(899)
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings of
long-term debt, net
|
3,000
|
|
|
—
|
|
Repayments of
long-term debt
|
(6,959)
|
|
|
—
|
|
Payment of taxes due
upon vesting of restricted stock
|
(27)
|
|
|
(74)
|
|
Proceeds from
issuance of common stock
|
—
|
|
|
266
|
|
Net cash provided by
(used in) financing activities
|
(3,986)
|
|
|
192
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(5)
|
|
|
3
|
|
Net increase
(decrease) in cash and cash equivalents
|
626
|
|
|
(14,263)
|
|
Cash and cash
equivalents at beginning of period
|
33,870
|
|
|
67,948
|
|
Cash and cash
equivalents at end of period
|
$
|
34,496
|
|
|
$
|
53,685
|
|
QUANTUM
CORPORATION
GAAP TO NON-GAAP
RECONCILIATION
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
Three Months Ended
June 30, 2016
|
|
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
|
$
|
50,371
|
|
|
43.3
|
%
|
|
$
|
(2,066)
|
|
|
(1.8)%
|
|
|
$
|
(3,795)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.01)
|
|
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
|
|
|
|
|
|
Crossroads patent
litigation costs
|
—
|
|
|
|
|
12
|
|
|
|
|
12
|
|
|
|
|
|
Non-GAAP
|
$
|
50,699
|
|
|
43.6
|
%
|
|
$
|
2,089
|
|
|
1.8
|
%
|
|
$
|
360
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net income (loss) per share:
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
Net income
(loss)
|
|
|
|
|
|
|
|
$
|
(3,795)
|
|
|
$
|
360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
266,337
|
|
|
266,337
|
|
Dilutive shares
from stock plans
|
|
|
|
|
|
|
|
—
|
|
|
1,023
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
266,337
|
|
|
267,360
|
|
|
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
|
|
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
SECOND 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
|
40.7
|
%
|
—
|
41.8
|
%
|
Forecast share-based
compensation
|
0.2
|
%
|
—
|
0.3
|
%
|
Forecast gross
margin rate on a non-GAAP basis
|
41.0
|
%
|
—
|
42.0
|
%
|
|
|
|
|
|
Dollar
Range
|
Forecast operating
expense on a GAAP basis
|
$
|
49.8
|
|
—
|
$
|
50.8
|
|
Forecast share-based
compensation
|
|
|
(1.6)
|
|
|
|
Forecast Crossroads
patent litigation costs
|
|
|
(0.2)
|
|
|
|
Forecast operating
expense on a non-GAAP basis
|
$
|
48.0
|
|
—
|
$
|
49.0
|
|
|
|
|
|
|
Dollars per
Share
|
Forecast diluted
earnings per share on a GAAP basis
|
$
|
(0.01)
|
|
—
|
$
|
(0.00)
|
|
Forecast share-based
compensation
|
0.00
|
|
|
|
Forecast Crossroads
patent litigation costs
|
0.00
|
|
|
|
Forecast diluted
earnings per share on a non-GAAP basis
|
$
|
(0.01)
|
|
—
|
$
|
(0.00)
|
|
|
|
|
|
|
Estimates based on
current (July 27, 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 as filed with the SEC on June 3, 2016. 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.