Quantum Corp. (QTM) Reports Preliminary Q2 Results

October 6, 2016 9:08 AM EDT

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Quantum Corp. (NYSE: QTM) today announced positive preliminary results for the fiscal second quarter 2017, ended Sept. 30, 2016. The company currently expects:

  • Total revenue of approximately $132 million to $134 million, up from $117 million in the fiscal second quarter 2016.1
  • Scale-out storage and related service revenue of at least $46 million, an increase of more than $16 million.
  • To be breakeven on both a diluted GAAP and diluted non-GAAP basis, compared to a diluted GAAP net loss of $0.04 per share and a diluted non-GAAP net loss of $0.03 per share.
"Following our strong first quarter performance, we built on our market momentum to deliver even stronger results for the September quarter, with year-over-year growth in both scale-out storage and branded data protection revenue," said Jon Gacek, president and CEO of Quantum. "We are particularly pleased with the 50-plus percent growth in scale-out storage, which was driven by increased sales across all our key vertical markets.

"Customers in an expanding number of use cases see our multi-tier storage solutions approach and unique combination of high performance, low-cost capacity and easy data access as key enablers for addressing their workflow demands. Our momentum continues to grow, and, in fact, we are off to a strong start in the December quarter, building on our increasing market traction."

Quantum will provide more detailed financial results for the fiscal second quarter in its earnings announcement on Oct. 26, 2016 (see below for conference call information).

Update on Refinancing Activities

In addition to announcing its preliminary results, the company also provided an update regarding the refinancing activities discussed in its fiscal first quarter 2017 earnings announcement.

"Since our earnings announcement, we've made significant progress toward completion of a new financing package to refinance our existing credit line and provide sufficient additional liquidity to address the convertible notes due November 2017," said Fuad Ahmad, senior vice president and CFO of Quantum. "Although we are not in a position to announce the transaction at this time and there can be no assurance that it will be consummated, Quantum and the other parties are currently negotiating definitive agreements for the transaction."

Earnings Conference Call and Audio Webcast Notification

Quantum will issue a news release on its fiscal second quarter financial results on Wednesday, Oct. 26, 2016, 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: +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

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