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Quantum Corporation (QMCO) Tops Q2 EPS by 7c, Revenues Beat; Offers 3Q Revenue Guidance Below Consensus

October 28, 2020 4:59 PM EDT

Quantum Corporation (NASDAQ: QMCO) reported Q2 EPS of ($0.01), $0.07 better than the analyst estimate of ($0.08). Revenue for the quarter came in at $85.8 million versus the consensus estimate of $83.23 million.

Second Quarter Fiscal 2021 Financial Summary

  • Revenue was $85.8 million
  • Gross margin was 45.1%
  • Total operating expenses decreased $4.1 million, or 10%, compared to the year ago quarter
  • GAAP net loss of $4.6 million, or $(0.11) per diluted share
  • Adjusted net loss of $0.2 million, or $(0.01) per diluted share
  • Adjusted EBITDA of $8.9 million

Jamie Lerner, Chairman and CEO, Quantum commented, "Our results in the second fiscal quarter exceeded our forecasted outlook, benefitting from the strength of our Federal government business, and solid sales execution. We are seeing a gradual and steady recovery across most of our vertical markets and key geographies, and simultaneously maintaining discipline with our expenses while increasing our investment in research and development to support the introduction of new software products. The 300 basis point sequential improvement in gross margins during the quarter, bolstered our Adjusted EBITDA to $8.9 million, meaningfully exceeding our guidance. Our pipeline remains strong, and we continue to identify and pursue significant opportunities to help customers manage video and other forms of unstructured data across its lifecycle."

Mr. Lerner continued, "At our analyst and investor day in August, we discussed Quantum's transformation over the next few years to a more software-defined and recurring revenue driven model that will drive margin enhancement and expansion of our addressable market. On November 10, 2020 we take the first step in this regard, with the launch of next generation data management software to classify, visualize, and orchestrate data, both on premise and in the cloud, along with new ways to automate data movement in the highly anticipated release of StorNext 7. These new solutions will enable our customers to gain visibility into their data, derive new insights, and unlock more business value from this data. All of these new offerings will be available on a subscription basis, driving more predictable revenue streams and improved margins for us in the future while increasing our addressable market in the near-term."

GUIDANCE:

Quantum Corporation sees Q3 2021 EPS of ($0.02)-$0.02, versus the consensus of $0.01. Quantum Corporation sees Q3 2021 revenue of $91-95 million, versus the consensus of $95.1 million.

For the third fiscal quarter of 2021, the Company expects revenues of $93 million plus or minus $2 million. The Company expects Adjusted Net Loss to be $1 million plus or minus $1 million and related Adjusted Net loss per share of $(0.02) plus or minus $0.02. Adjusted EBITDA is expected to be $8 million plus or minus $1 million.

For earnings history and earnings-related data on Quantum Corporation (QMCO) click here.



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