Quantum Corp. (QTM) Misses Q3 EPS by 1c; Guides Below

Quantum Corp. (NYSE: QTM) reported Q3 EPS of $0.02, $0.01 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $128 million versus the consensus estimate of $135.24 million.

GUIDANCE:

Quantum Corp. sees Q4 2016 EPS of $0.00-$0.01, versus the consensus of $0.02. Quantum Corp. sees Q4 2016 revenue of $118-122 million, versus the consensus of $140.2 million.

"We are pleased with our overall results and the continued scale-out revenue growth this quarter, to a new record high, especially given the overall weakness in the broad storage market environment," said Jon Gacek, president and CEO of Quantum. "In response to the market conditions, we also successfully implemented significant operational changes during the quarter that improved our profitability. For the quarter, our data protection revenue increased sequentially — with higher sales of both disk and tape automation products. In our scale-out storage solutions line, targeted at specialized workflows, we grew revenue 31 percent over the comparable quarter a year ago, even with no 'mega deals' above $1 million in the just-completed quarter. Excluding mega deals, scale-out storage revenue grew 48 percent and 49 percent, respectively, over the comparable three- and nine-month periods in the prior year.

"For the fourth quarter, we will continue to focus on growing our run-rate scale-out revenue driven by expanding our media and entertainment, surveillance and technical workflow opportunities, and we will continue to work to close the mega deals in our sales funnel. In addition, similar to the third quarter, we will actively manage tape media revenue based on the pricing environment and optimize our activity for profit. We will also continue to manage our spending and our investments to achieve the right balance across our financial objectives."

For earnings history and earnings-related data on Quantum Corp. (QTM) click here.

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