Quantum Corp. (QTM) Misses Q1 EPS by 1c, Miss on Revenues; FY17 Revenues Below Consensus

Quantum Corp. (NYSE: QTM) reported Q1 EPS of $0.04, $0.01 worse than the analyst estimate of $0.05. Revenue for the quarter came in at $116.9 million versus the consensus estimate of $119.41 million.

Fiscal Second Quarter and Full Year 2018 GuidanceQuantum provided the following guidance for the fiscal second quarter 2018:

• Total revenue of $120 million to $125 million.
• GAAP and non-GAAP gross margin of 41-42 percent.
• GAAP and non-GAAP operating expenses of approximately $49 million and $47 million, respectively.
• GAAP and non-GAAP interest expense of $2.4 million and $1.9 million, respectively, and taxes of $400,000.
• GAAP loss/earnings per share of ($0.06) to breakeven and non-GAAP earnings of $0.01 to $0.05 per diluted share.

The company also provided the following guidance for the full fiscal year:

• Total revenue of $515 million to $525 million.
• GAAP and non-GAAP earnings per share above the levels achieved in fiscal 2017.

GUIDANCE:

Quantum Corp. sees FY2018 revenue of $515-525 million, versus the consensus of $528.43 million.

Fiscal First Quarter 2018 Financial Results

(All comparisons are relative to the fiscal first quarter 2017 unless otherwise stated.)1

• Total revenue increased to $116.9 million, up from $116.3 million.
• Branded revenue was $99.6 million, a 3 percent increase.
• Scale-out tiered storage revenue was $33.7 million, up from $30.8 million.
• Total data protection revenue was $73.1 million, down from $76.9 million and consisting of:
  • $58.4 million in tape automation, devices and media revenue, up 6 percent overall, with branded revenue growing 14 percent and OEM revenue declining 32 percent.
  • $14.7 million in disk backup systems revenue, down from $21.5 million in the same quarter a year earlier which included a large, multi-million dollar deal.
• Royalty revenue was $10.0 million, up from $8.6 million.
• GAAP operating loss was $2.5 million, and non-GAAP operating income was $2.2 million, compared to a loss of $1.8 million and income of $2.4 million, respectively.
• GAAP net loss was $3.7 million, compared to $3.5 million, a net loss of $0.11 per diluted share2 in both quarters.
• Non-GAAP net income was $1.4 million, or $0.04 per diluted share, up from $0.8 million, or $0.02 per diluted share.

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

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