Quantum Corporation (NASDAQ: QMCO) reported Q3 EPS of $0.01, $0.03 better than the analyst estimate of ($0.02). Revenue for the quarter came in at $98 million versus the consensus estimate of $93.2 million.

Third Quarter Fiscal 2021 Financial Summary

• Revenue grew 14% sequentially to $98.0 million
• Gross margin was 43.1%
• GAAP net loss was $2.7 million, or ($0.07) per share
• Non-GAAP adjusted net income improved to $0.01 million, $0.00 per share
• Adjusted EBITDA increased $0.6 million sequentially to $9.4 million

Jamie Lerner, Chairman and CEO, Quantum commented, "Revenue in the third quarter once again exceeded our guidance due to continued growth across our traditional market verticals, including with our hyperscale customers, as well as an initial recovery in our Media and Entertainment business, coupled with increasing evidence that our new strategy is resonating with customers. Notably, the higher-than-expected revenue resulted in continued improvement in adjusted EBITDA and our achievement of breakeven on an adjusted basis ahead of plan. These accomplishments are particularly noteworthy considering the higher sales and channel expenses incurred in the quarter to support our new product introductions as well as the expansion of our leadership team."

"In addition to our strong financial results, our business transformation continued with the introduction of multiple new products to classify, manage and protect unstructured data, on premise or in the cloud. We closed our first ATFS and StorNext 7 deals with the subscription software pricing, and we expect these solutions will drive a growing contribution of recurring revenue and higher margins, while also increasing the total addressable market of Quantum's solutions. Also during the quarter, we further expanded our software offerings through the acquisition of Square Box Systems, including its flagship product, CatDV, a software platform that leverages artificial intelligence and machine learning technology to catalog and analyze digital assets."

"Looking ahead to the fourth fiscal quarter, we expect to continue our recent momentum and are guiding for another quarter of solid operating performance in what has historically been a seasonally weak quarter for Quantum, driven by a combination of ongoing operational execution and incremental traction across our market verticals, including with our leading hyperscale and global web scale customers."

GUIDANCE:

Quantum Corporation sees Q4 2021 EPS of ($0.02)-$0.02, versus the consensus of $0.00. Quantum Corporation sees Q4 2021 revenue of $95-101 million, versus the consensus of $94.1 million.

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