SAN JOSE, Calif., Jan. 29, 2015 /PRNewswire/ -- Quantum Corp.
(NYSE: QTM) today reported results for the fiscal third quarter
2015 ended Dec. 31, 2014.
Fiscal Third Quarter 2015 Results
(Unless otherwise noted, all comparisons are relative to the
fiscal third quarter 2014.)
- Total revenue was $142.1 million,
down slightly due primarily to a 33 percent decline in OEM tape
automation revenue. In addition, total revenue was $1.4 million lower than it would have been had
foreign exchange rates remained the same year-over-year.
- Total branded revenue grew to $116.2
million, a 2 percent increase.
- Scale-out storage and related service revenue increased 77
percent to a record $27 million, with
significant contributions from both StorNext Pro™ Solutions and
Lattus™ extended online storage systems.
- DXi® backup and deduplication appliance revenue
increased 5 percent to $24 million,
driven by the strong performance of Quantum's new DXi6900
platform.
- GAAP operating income was $9.6
million, up from an operating loss of $0.1 million.
- GAAP net income was $6.9 million,
or $0.03 per diluted share, up from a
net loss of
$2.5 million, or $0.01 per diluted share.
- Non-GAAP operating income increased to $13.6 million, from $8.6
million.
- Non-GAAP net income improved to $10.9
million, or $0.04 per diluted
share, up from
$6.2 million, or $0.02 per diluted share.
- Quantum generated $2.6 million in
cash from operations and ended the quarter with nearly
$110 million in total cash and cash
equivalents.
"We are very pleased with our strong third quarter results, as
we continued to build on the momentum we saw in the first half of
our fiscal year," said Jon Gacek,
president and CEO of Quantum. "Branded revenue increased
year-over-year for the third consecutive quarter, driven by
scale-out storage revenue growth of nearly 80 percent as well as
higher DXi revenue. Reflecting the improvements we've made in our
operating model, we also significantly increased net income
year-over-year and delivered our best operating margins in four
years — nearly
7 percent and 10 percent on a GAAP and non-GAAP basis,
respectively.
"With our market momentum, our strong solutions portfolio and
the significant leverage our financial model provides, we are
well-positioned to drive year-over-year growth and increased profit
in the final quarter of fiscal 2015 and in the coming year."
In addition to reporting its third quarter results, Quantum also
announced that it has entered into an agreement to repurchase
$50 million of its convertible notes
due November 2015 in an all-cash
transaction expected to close on Jan. 30,
2015. (For additional information, see Quantum's SEC Form
8-K filed today.)
Fiscal Fourth Quarter 2015 Outlook
For the fiscal fourth quarter, Quantum expects:
- Revenue of approximately $130 million to
$135 million, based on typical seasonality.
- GAAP and non-GAAP gross margin of approximately 43-45
percent.
- GAAP operating expenses of approximately $55 million to $56 million and non-GAAP operating
expenses of $52 million to $53
million.
- GAAP operating income of $2.5 million to
$3.5 million and non-GAAP operating income of
$6 million to $7 million.
- Interest expense of $2.1 million
and taxes of $0.5 million.
- GAAP net loss of $0.8 million to
$1.8 million, or a loss of less than
$0.01 to a loss of $0.01 per diluted share, and non-GAAP net income
of $3 million to $4 million, or
$0.01 to $0.02 per diluted
share.
Fiscal Third Quarter 2015 Business Highlights
- Quantum extended its line of high-performance StorNext Pro
Solutions with the introduction of StorNext Pro Foundation, a
low-cost, integrated shared storage system designed specifically
for smaller workgroups. Built on proven StorNext 5 collaboration
and workflow software, StorNext Pro Foundation brings the
capabilities of Quantum's award-winning StorNext Pro Solutions to a
new audience of media professionals in post and broadcast as well
as those managing corporate and government video.
- Avere Systems and Quantum announced a joint storage solution
designed to optimize workflows for the oil and gas industry.
Leveraging Quantum's Lattus system, the combination extends online
storage by delivering fast access to seismic data via a
cost-effective private cloud solution with the extreme scalability
and performance needed in the oil and gas market.
- Reflecting the strength of Quantum's solutions in helping
enterprise customers manage and protect their data in some of the
most demanding environments, revenue from deals over $200,000 increased by more than 20 percent. These
wins included a $4 million
StorNext-Lattus deal for managing video at one of the world's
largest consumer electronics companies ($3
million of which was recognized in the quarter) and
StorNext® deals of more than $300,000 each to two of the top U.S. broadcast
networks and an international radio broadcaster. Other wins over
$200,000 included DXi6900 sales to a
large European banking group, a multinational biopharmaceutical
company and a major Asian insurance provider as well as tape
automation deals with one of the top international shipping
companies, a leading business process and document management firm,
and a major American cable network.
- For the second consecutive year, Quantum won top honors for
"Vendor's Reseller Channel Programme of the Year" at the Storage
Virtualisation Cloud Awards. The company was recognized for ongoing
dedication to the channel through its Quantum Alliance global
partner program.
Conference Call and Audio Webcast Notification
Quantum will hold a conference call today, Jan. 29, 2015, at 2:00
p.m. PST to discuss its fiscal third quarter results. Press
and industry analysts are invited to attend in listen-only mode.
Dial-in number: 719-325-2448, conference ID: 5771187. Quantum will
provide a live audio webcast of the conference call beginning
today, Jan. 29, 2015, at 2:00 p.m. PST. Site for the webcast and related
information: www.quantum.com/investors.
Following completion of the call, a recorded replay of the
webcast will be available at www.quantum.com/investors. For those
without access to the Internet, a replay of the call will be
available beginning at 5:00 p.m. PST
on Jan. 29, 2015 through Feb. 3, 2015 at 5:00 p.m.
PST. To listen to the telephonic replay, call 719-457-0820,
replay passcode: 5771187.
About Quantum
Quantum is a leading expert in scale-out storage, archive and
data protection, providing solutions for capturing, sharing and
preserving digital assets over the entire data lifecycle. From
small businesses to major enterprises, more than 100,000 customers
have trusted Quantum to address their most demanding data workflow
challenges. With Quantum, customers can Be Certain™ they have the
end-to-end storage foundation to maximize the value of their data
by making it accessible whenever and wherever needed, retaining it
indefinitely and reducing total cost and complexity. See how at
www.quantum.com/customerstories.
Quantum, the Quantum logo, Be Certain, DXi, StorNext, StorNext
Pro and Lattus are either registered trademarks or trademarks of
Quantum Corporation and its affiliates in the United States and/or other countries. All
other trademarks are the property of their respective owners.
"Safe Harbor" Statement under the U.S. Private Securities
Litigation Reform Act of 1995: This press release contains
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Specifically, without
limitation, our statement that we are well-positioned to drive
year-over-year growth and increased profit in the final quarter of
fiscal 2015 and in the coming year and all of our statements under
the section titled Fiscal Fourth Quarter 2015 Outlook are
forward-looking statements within the meaning of the Safe Harbor.
All forward-looking statements in this press release are based on
information available to Quantum on the date hereof. These
statements involve known and unknown risks, uncertainties and other
factors that may cause Quantum's actual results to differ
materially from those implied by the forward-looking statement.
More detailed information about these risk factors, and additional
risk factors are set forth in Quantum's periodic filings with the
Securities and Exchange Commission, including, but not limited to,
those risks and uncertainties listed in the section entitled "Risk
Factors" in Quantum's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on June
6, 2014 and in Quantum's Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on November 7, 2014. Quantum expressly disclaims any
obligation to update or alter its forward-looking statements,
whether as a result of new information, future events or
otherwise.
Use of Non-GAAP Financial Measures
Quantum believes that the non-GAAP financial measures disclosed
above provide useful and supplemental information to investors
regarding its quarterly financial performance. Quantum management
and Board of Directors use these non-GAAP financial measures
internally to understand, manage and evaluate the company's
business results and make operating decisions. For instance,
Quantum management often makes decisions regarding staffing, future
management priorities and how the company will direct future
operating expenses on the basis of non-GAAP financial measures. In
addition, compensation of our employees is based in part on the
performance of our business based on non-GAAP operating income.
The non-GAAP financial measures used in this press release
exclude the impact of the items below for the following
reasons:
Amortization of Intangible Assets
This includes acquired intangibles such as purchased technology
and customer relationships in connection with prior acquisitions.
These expenses are not factored into management's evaluation of
potential acquisitions or Quantum's performance after completion of
the acquisitions because they are not related to Quantum's core
operating performance. In addition, the frequency and amount of
such charges can vary significantly based on the size and timing of
acquisitions and the maturities of the businesses being acquired.
Excluding acquisition-related charges from non-GAAP measures
provides investors with a basis to compare Quantum against the
performance of other companies without the variability caused by
purchase accounting.
Share-Based Compensation Expense
Share-based compensation expense relates primarily to equity
awards such as stock options and restricted stock units.
Share-based compensation is a non-cash expense that varies in
amount from period to period and is dependent on market forces that
are often beyond Quantum's control. Management believes that
non-GAAP measures adjusted for share-based compensation provide
investors with a basis to measure Quantum's core performance
against the performance of other companies without the variability
created by share-based compensation as a result of the variety of
equity awards used by other companies and the varying methodologies
and assumptions used.
Restructuring Charges
Restructuring charges primarily relate to expenses associated
with changes to Quantum's operating structure. Restructuring
charges are excluded from non-GAAP financial measures because they
are not considered core operating activities. Although Quantum has
engaged in various restructuring activities in the past, each has
been a discrete event based on a unique set of business objectives.
Management believes that it is appropriate to exclude restructuring
charges from Quantum's non-GAAP financial measures, as it enhances
the ability of investors to compare Quantum's period-over-period
operating results from continuing operations.
Outsourcing Transition Costs
Outsourcing transition costs are expenses attributable to
transitioning our manufacturing to an outsourced model. These costs
are excluded from non-GAAP financial measures because they are not
considered core operating activities, and management believes that
it is appropriate to exclude these costs in order to provide
investors the ability to compare Quantum's period-over-period
operating results from continuing operations.
Proxy Contest and Related Costs
Proxy contest and related costs are expenses incurred to respond
to activities and inquiries of Starboard Value LP, including their
proxy solicitation. The Company has not incurred significant
expenses in connection with such matters in historical periods and
these costs are not considered core operating activities.
Management believes that it is appropriate to exclude these costs
in order to provide investors the ability to compare Quantum's
period-over-period operating results from continuing
operations.
Crossroads Patent Litigation Costs
Crossroads patent litigation costs are expenses incurred to
defend ourselves and perform other activities related to a patent
infringement lawsuit filed by Crossroads Systems, Inc. These costs
are excluded from non-GAAP financial measures because they are not
considered core operating activities, and management believes that
it is appropriate to exclude these costs in order to provide
investors the ability to compare Quantum's period-over-period
operating results from continuing operations.
Acquisition Expenses
The acquisition expenses were those expenses incurred to acquire
Symform, Inc. and are not part of Quantum's future core
operations.
Symform Expenses, Net
Quantum acquired a cloud storage services platform from Symform,
Inc. ("Symform") in July 2014.
Symform revenue comprises revenue generated from the Symform cloud
storage services platform. Symform expenses consist of costs
related to running, maintaining and further developing the Symform
cloud storage services platform as well as the costs of integrating
Symform into Quantum's business. Net Symform expenses represent
Symform expenses less Symform revenue, and non-GAAP gross margin
excludes both Symform revenue and cost of revenue. Management
believes that it is appropriate to exclude these amounts in order
to provide investors with a view of Quantum's results consistent
with how management views and is running the business.
Loss on Debt Extinguishment
The loss on debt extinguishment relates to a specific debt
repurchase action undertaken in January
2015. The loss is excluded from non-GAAP financial measures
because it is not considered a core operating activity and
management believes that it is appropriate to exclude the loss in
order to provide investors the ability to compare Quantum's
period-over-period results from continuing operations.
Non-GAAP financial measures should not be considered as a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP. They are limited in value because
they exclude charges that have a material impact on the company's
reported financial results and, therefore, should not be relied
upon as the sole financial measures to evaluate the company. The
non-GAAP financial measures are meant to supplement, and be viewed
in conjunction with, GAAP financial measures. Investors are
encouraged to review the reconciliation of the non-GAAP financial
measures to their most directly comparable GAAP financial measures
as provided in the tables accompanying this press release.
Note 1
In the fourth quarter of fiscal year 2014, Quantum identified
errors related to the accounting for rent expense and certain
allowances for estimated future price adjustments to customers
which impacted prior reporting periods. As a result, the company's
financial statements for the third quarter of fiscal 2014 have been
revised. Revenue for the third quarter of fiscal 2014 has been
reduced by $0.1 million and general
and administrative expense has been reduced by less than
$0.1 million. For additional
information, refer to our Form 10-K filed with the Securities and
Exchange Commission on June 6,
2014.
Contact:
Brad Cohen
Public Relations
Quantum Corp.
(408) 944-4044
brad.cohen@quantum.com
Brinlea Johnson or Allise
Furlani
Investor Relations
The Blueshirt Group
(212) 331-8424 or (212) 331-8433
brinlea@blueshirtgroup.com or allise@blueshirtgroup.com
QUANTUM
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
December 31,
2014
|
|
March 31,
2014*
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
$
106,983
|
|
$
99,125
|
|
Restricted cash
|
2,677
|
|
2,760
|
|
Accounts receivable
|
110,628
|
|
101,605
|
|
Manufacturing inventories
|
38,298
|
|
34,815
|
|
Service parts inventories
|
24,361
|
|
25,629
|
|
Other current assets
|
10,174
|
|
10,161
|
|
Total current
assets
|
293,121
|
|
274,095
|
|
|
|
|
|
|
Long-term
assets:
|
|
|
|
|
Property and
equipment
|
15,292
|
|
17,574
|
|
Intangible
assets
|
891
|
|
3,911
|
|
Goodwill
|
55,613
|
|
55,613
|
|
Other long-term
assets
|
9,030
|
|
10,605
|
|
Total long-term
assets
|
80,826
|
|
87,703
|
|
|
|
|
|
|
|
$
373,947
|
|
$
361,798
|
|
|
|
|
|
|
Liabilities and
Stockholders' Deficit
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
51,081
|
|
$
41,792
|
|
Accrued
warranty
|
4,788
|
|
6,116
|
|
Deferred
revenue, current
|
89,973
|
|
98,098
|
|
Accrued
restructuring charges, current
|
3,136
|
|
4,345
|
|
Convertible
subordinated debt, current
|
133,735
|
|
-
|
|
Accrued
compensation
|
31,270
|
|
25,036
|
|
Other accrued
liabilities
|
13,901
|
|
15,168
|
|
Total current
liabilities
|
327,884
|
|
190,555
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
Deferred
revenue, long-term
|
39,251
|
|
40,054
|
|
Accrued
restructuring charges, long-term
|
3,061
|
|
4,023
|
|
Convertible subordinated debt,
long-term
|
70,000
|
|
203,735
|
|
Other
long-term liabilities
|
10,423
|
|
10,831
|
|
Total long-term
liabilities
|
122,735
|
|
258,643
|
|
|
|
|
|
|
Stockholders'
deficit
|
(76,672)
|
|
(87,400)
|
|
|
|
|
|
|
|
$
373,947
|
|
$
361,798
|
|
|
|
*
|
Derived from the
March 31, 2014 audited Consolidated Financial
Statements.
|
|
QUANTUM
CORPORATION
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
(In thousands,
except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
|
|
|
(Revised)
Note 1
|
|
|
|
|
|
(Revised)
Note 1
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
$
92,166
|
|
$
98,287
|
|
|
|
$
257,576
|
|
$
268,892
|
|
|
Service
|
39,191
|
|
36,926
|
|
|
|
116,848
|
|
109,612
|
|
|
Royalty
|
10,706
|
|
10,656
|
|
|
|
30,873
|
|
46,693
|
|
|
Total
revenue
|
142,063
|
|
145,869
|
|
|
|
405,297
|
|
425,197
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
59,772
|
|
64,502
|
|
|
|
170,273
|
|
181,167
|
|
|
Service
|
17,224
|
|
19,706
|
|
|
|
52,502
|
|
56,053
|
|
|
Restructuring charges
related to cost of revenue
|
-
|
|
288
|
|
|
|
-
|
|
377
|
|
|
Total cost of
revenue
|
76,996
|
|
84,496
|
|
|
|
222,775
|
|
237,597
|
|
|
Gross
margin
|
65,067
|
|
61,373
|
|
|
|
182,522
|
|
187,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
13,969
|
|
16,010
|
|
|
|
43,680
|
|
49,063
|
|
|
Sales and
marketing
|
27,494
|
|
29,424
|
|
|
|
83,417
|
|
89,577
|
|
|
General and
administrative
|
13,815
|
|
14,261
|
|
|
|
42,271
|
|
43,745
|
|
|
Restructuring
charges
|
187
|
|
1,758
|
|
|
|
1,676
|
|
4,525
|
|
|
Total operating
expenses
|
55,465
|
|
61,453
|
|
|
|
171,044
|
|
186,910
|
|
|
Gain on sale of
assets
|
-
|
|
-
|
|
|
|
462
|
|
-
|
|
|
Income (loss) from
operations
|
9,602
|
|
(80)
|
|
|
|
11,940
|
|
690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
expense
|
125
|
|
370
|
|
|
|
215
|
|
791
|
|
|
Interest
expense
|
(2,460)
|
|
(2,440)
|
|
|
|
(7,360)
|
|
(7,319)
|
|
|
Income (loss) before
income taxes
|
7,267
|
|
(2,150)
|
|
|
|
4,795
|
|
(5,838)
|
|
|
Income tax
provision
|
336
|
|
308
|
|
|
|
940
|
|
1,232
|
|
|
Net income
(loss)
|
$
6,931
|
|
$
(2,458)
|
|
|
|
$
3,855
|
|
$
(7,070)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.03
|
|
$
(0.01)
|
|
|
|
$
0.02
|
|
$
(0.03)
|
|
|
Diluted
|
$
0.03
|
|
$
(0.01)
|
|
|
|
$
0.01
|
|
$
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
255,860
|
|
248,135
|
|
|
|
253,773
|
|
246,183
|
|
|
Diluted
|
302,855
|
|
248,135
|
|
|
|
257,807
|
|
246,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in the above
Statements of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
160
|
|
$
368
|
|
|
|
$
753
|
|
$
1,104
|
|
|
Sales and
marketing
|
-
|
|
1,856
|
|
|
|
2,784
|
|
5,569
|
|
|
|
160
|
|
2,224
|
|
|
|
3,537
|
|
6,673
|
|
|
Share-based
compensation:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
362
|
|
509
|
|
|
|
1,109
|
|
1,560
|
|
|
Research and
development
|
600
|
|
862
|
|
|
|
1,983
|
|
2,638
|
|
|
Sales and
marketing
|
830
|
|
994
|
|
|
|
2,627
|
|
3,148
|
|
|
General and
administrative
|
1,126
|
|
1,056
|
|
|
|
2,936
|
|
2,922
|
|
|
|
2,918
|
|
3,421
|
|
|
|
8,655
|
|
10,268
|
|
|
Outsourcing
transition costs:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
-
|
|
952
|
|
|
|
126
|
|
952
|
|
|
|
-
|
|
952
|
|
|
|
126
|
|
952
|
|
|
Proxy contest and
related costs:
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
125
|
|
-
|
|
|
|
972
|
|
-
|
|
|
|
125
|
|
-
|
|
|
|
972
|
|
-
|
|
|
Crossroads patent
litigation costs:
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
325
|
|
-
|
|
|
|
744
|
|
-
|
|
|
|
325
|
|
-
|
|
|
|
744
|
|
-
|
|
|
Acquisition
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
-
|
|
-
|
|
|
|
4
|
|
-
|
|
|
|
-
|
|
-
|
|
|
|
4
|
|
-
|
|
|
Symform expenses,
net:
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
30
|
|
-
|
|
|
|
50
|
|
-
|
|
|
Research and
development
|
131
|
|
-
|
|
|
|
241
|
|
-
|
|
|
Sales and
marketing
|
104
|
|
-
|
|
|
|
195
|
|
-
|
|
|
|
265
|
|
-
|
|
|
|
486
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1 is
presented above, before the Condensed Consolidated Balance
Sheets.
|
QUANTUM
CORPORATION
|
GAAP TO NON-GAAP
RECONCILIATION
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2014
|
|
Gross
Margin
|
|
Gross Margin
Rate
|
|
|
Income From
Operations
|
|
Operating
Margin
|
|
Net
Income
|
|
Per Share Net
Income, Basic
|
|
Per Share Net
Income, Diluted
|
GAAP
|
$ 65,067
|
|
45.8%
|
|
|
$
9,602
|
|
6.8%
|
|
$ 6,931
|
|
$
0.03
|
|
$
0.03
|
Non-GAAP Reconciling
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
160
|
|
|
|
|
160
|
|
|
|
160
|
|
|
|
|
Share-based
compensation
|
362
|
|
|
|
|
2,918
|
|
|
|
2,918
|
|
|
|
|
Restructuring
charges
|
-
|
|
|
|
|
187
|
|
|
|
187
|
|
|
|
|
Proxy contest and
related costs
|
-
|
|
|
|
|
125
|
|
|
|
125
|
|
|
|
|
Crossroads patent
litigation costs
|
-
|
|
|
|
|
325
|
|
|
|
325
|
|
|
|
|
Symform expenses,
net
|
30
|
|
|
|
|
265
|
|
|
|
265
|
|
|
|
|
Non-GAAP
|
$ 65,619
|
|
46.2%
|
|
|
$
13,582
|
|
9.6%
|
|
$ 10,911
|
|
$
0.04
|
|
$
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net income per share:
|
|
|
GAAP
|
|
Non-GAAP
|
Net
income
|
|
|
|
|
|
|
|
$
6,931
|
|
$
10,911
|
Interest on
dilutive convertible notes
|
|
|
902
|
|
902
|
Income for
purposes of computing income per diluted share
|
|
|
$
7,833
|
|
$
11,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
255,860
|
|
255,860
|
Dilutive shares
from stock plans
|
|
|
|
|
4,493
|
|
4,493
|
Dilutive shares
from convertible notes
|
|
|
|
|
42,502
|
|
42,502
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
302,855
|
|
302,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
December 31, 2014
|
|
Gross
Margin
|
|
Gross Margin
Rate
|
|
|
Income From
Operations
|
|
Operating
Margin
|
|
Net
Income
|
|
Per Share Net
Income, Basic
|
|
Per Share Net
Income, Diluted
|
GAAP
|
$ 182,522
|
|
45.0%
|
|
|
$
11,940
|
|
2.9%
|
|
$ 3,855
|
|
$
0.02
|
|
$
0.01
|
Non-GAAP Reconciling
Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
753
|
|
|
|
|
3,537
|
|
|
|
3,537
|
|
|
|
|
Share-based
compensation
|
1,109
|
|
|
|
|
8,655
|
|
|
|
8,655
|
|
|
|
|
Restructuring
charges
|
-
|
|
|
|
|
1,676
|
|
|
|
1,676
|
|
|
|
|
Outsourcing
transition costs
|
126
|
|
|
|
|
126
|
|
|
|
126
|
|
|
|
|
Proxy contest and
related costs
|
-
|
|
|
|
|
972
|
|
|
|
972
|
|
|
|
|
Crossroads patent
litigation costs
|
-
|
|
|
|
|
744
|
|
|
|
744
|
|
|
|
|
Acquisition
expenses
|
-
|
|
|
|
|
4
|
|
|
|
4
|
|
|
|
|
Symform expenses,
net
|
50
|
|
|
|
|
486
|
|
|
|
486
|
|
|
|
|
Non-GAAP
|
$ 184,560
|
|
45.5%
|
|
|
$
28,140
|
|
6.9%
|
|
$ 20,055
|
|
$
0.08
|
|
$
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net income per share:
|
|
GAAP
|
|
Non-GAAP
|
Net
income
|
|
|
|
|
|
|
|
$
3,855
|
|
$
20,055
|
Interest on
dilutive convertible notes
|
|
|
|
|
|
-
|
|
2,707
|
Income for
purposes of computing income per diluted share
|
|
|
|
$
3,855
|
|
$
22,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
253,773
|
|
253,773
|
Dilutive shares
from stock plans
|
|
|
|
4,034
|
|
4,034
|
Dilutive shares
from convertible notes
|
|
-
|
|
42,502
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
257,807
|
|
300,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The non-GAAP
financial information set forth in this table is not prepared in
accordance with generally accepted accounting principles and may be
different from non-GAAP financial information used by other
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2013
|
|
(Revised)
Note 1
|
|
Gross
Margin
|
|
Gross Margin
Rate
|
|
|
Income (Loss) From
Operations
|
|
Operating
Margin
|
|
Net Income (Loss
)
|
|
Per Share Net
Income (Loss), Basic
|
|
Per Share Net
Income (Loss), Diluted
|
GAAP
|
$ 61,373
|
|
42.1%
|
|
|
$
(80)
|
|
(0.1)%
|
|
$ (2,458)
|
|
$
(0.01)
|
|
$
(0.01)
|
Non-GAAP
Reconciling Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
368
|
|
|
|
|
2,224
|
|
|
|
2,224
|
|
|
|
|
Share-based
compensation
|
509
|
|
|
|
|
3,421
|
|
|
|
3,421
|
|
|
|
|
Restructuring
charges
|
288
|
|
|
|
|
2,046
|
|
|
|
2,046
|
|
|
|
|
Outsourcing
transition costs
|
952
|
|
|
|
|
952
|
|
|
|
952
|
|
|
|
|
Non-GAAP
|
$ 63,490
|
|
43.5%
|
|
|
$
8,563
|
|
5.9%
|
|
$ 6,185
|
|
$
0.02
|
|
$
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net income (loss) per share:
|
|
|
|
GAAP
|
|
Non-GAAP
|
Net income
(loss)
|
|
|
|
|
|
|
$
(2,458)
|
|
$
6,185
|
Interest on
dilutive convertible notes
|
|
|
|
-
|
|
902
|
Income (loss)
for purposes of computing income (loss) per diluted
share
|
|
$
(2,458)
|
|
$
7,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
248,135
|
|
248,135
|
Dilutive shares
from stock plans
|
|
|
-
|
|
1,952
|
Dilutive shares
from convertible notes
|
|
|
|
|
-
|
|
42,502
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
248,135
|
|
292,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended December 31, 2013
|
|
(Revised)
Note 1
|
|
Gross
Margin
|
|
Gross Margin
Rate
|
|
|
Income From
Operations
|
|
Operating
Margin
|
|
Net Income
(Loss)
|
|
Per Share Net
Income (Loss), Basic
|
|
Per Share Net
Income (Loss), Diluted
|
GAAP
|
$ 187,600
|
|
44.1%
|
|
|
$
690
|
|
0.2%
|
|
$ (7,070)
|
|
$
(0.03)
|
|
$
(0.03)
|
Non-GAAP
Reconciling Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
1,104
|
|
|
|
|
6,673
|
|
|
|
6,673
|
|
|
|
|
Share-based
compensation
|
1,560
|
|
|
|
|
10,268
|
|
|
|
10,268
|
|
|
|
|
Restructuring
charges
|
377
|
|
|
|
|
4,902
|
|
|
|
4,902
|
|
|
|
|
Outsourcing
transition costs
|
952
|
|
|
|
|
952
|
|
|
|
952
|
|
|
|
|
Non-GAAP
|
$ 191,593
|
|
45.1%
|
|
|
$
23,485
|
|
5.5%
|
|
$ 15,725
|
|
$
0.06
|
|
$
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of
basic and diluted net income (loss) per share:
|
|
|
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
Net income
(loss)
|
|
|
|
|
|
|
|
$
(7,070)
|
|
$
15,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
246,183
|
|
246,183
|
Dilutive shares
from stock plans
|
|
|
|
|
|
|
-
|
|
2,925
|
Diluted
|
|
|
|
|
|
|
|
246,183
|
|
249,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1 is
presented above, before the Condensed Consolidated Balance
Sheets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The non-GAAP
financial information set forth in this table is not prepared in
accordance with generally accepted accounting principles and may be
different from non-GAAP financial information used by other
companies.
|
QUANTUM
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
|
|
(Revised)
Note 1
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
|
$
3,855
|
|
$
(7,070)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
6,364
|
|
8,217
|
Amortization of
intangible assets
|
|
3,537
|
|
6,673
|
Amortization of debt
issuance costs
|
|
1,246
|
|
1,225
|
Service parts lower
of cost or market adjustment
|
|
2,690
|
|
8,715
|
Gain on sale of
assets
|
|
(462)
|
|
-
|
Deferred income
taxes
|
|
(11)
|
|
86
|
Share-based
compensation
|
|
8,655
|
|
10,268
|
Other
non-cash
|
|
(302)
|
|
-
|
Changes in assets and
liabilities, net of effect of acquisition:
|
|
|
|
|
Accounts
receivable
|
|
(9,023)
|
|
(7,443)
|
Manufacturing
inventories
|
|
(6,145)
|
|
5,372
|
Service parts
inventories
|
|
(686)
|
|
2,993
|
Accounts
payable
|
|
9,325
|
|
(8,672)
|
Accrued
warranty
|
|
(1,328)
|
|
(1,393)
|
Deferred
revenue
|
|
(8,928)
|
|
(1,182)
|
Accrued restructuring
charges
|
|
(2,197)
|
|
309
|
Accrued
compensation
|
|
6,774
|
|
(1,786)
|
Other assets and
liabilities
|
|
(2,247)
|
|
(776)
|
Net cash provided by
operating activities
|
|
11,117
|
|
15,536
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of property
and equipment
|
|
(2,882)
|
|
(5,026)
|
Proceeds from sale of
assets
|
|
462
|
|
-
|
Change in restricted
cash
|
|
(139)
|
|
517
|
Purchases of other
investments
|
|
(22)
|
|
(534)
|
Return of principal
from other investments
|
|
104
|
|
-
|
Payment for business
acquisition, net of cash acquired
|
|
(517)
|
|
-
|
Net cash used in
investing activities
|
|
(2,994)
|
|
(5,043)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Payment of taxes due
upon vesting of restricted stock
|
|
(2,212)
|
|
(1,807)
|
Proceeds from
issuance of common stock
|
|
2,060
|
|
2,431
|
Net cash provided by
(used in) financing activities
|
|
(152)
|
|
624
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(113)
|
|
22
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
7,858
|
|
11,139
|
Cash and cash
equivalents at beginning of period
|
|
99,125
|
|
68,976
|
Cash and cash
equivalents at end of period
|
|
$
106,983
|
|
$
80,115
|
|
|
|
|
|
Note 1 is
presented above, before the Condensed Consolidated Balance
Sheets.
|
|
|
QUANTUM
CORPORATION
|
FORECAST FOURTH
QUARTER FISCAL 2015
|
GAAP TO NON-GAAP
RECONCILIATION
|
(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Percentage
Range
|
Forecast gross
margin rate on a GAAP basis
|
42.6%
|
-
|
44.6%
|
Forecast amortization
of intangibles
|
0.1%
|
Forecast share-based
compensation
|
0.3%
|
Forecast gross
margin rate on a non-GAAP basis
|
43.0%
|
-
|
45.0%
|
|
|
|
|
|
Dollar
Range
|
Forecast operating
expense on a GAAP basis
|
$54.9
|
-
|
$55.9
|
Forecast share-based
compensation
|
(2.4)
|
Forecast Crossroads
patent litigation costs
|
(0.3)
|
Forecast Symform
expenses, net
|
(0.2)
|
Forecast operating
expense on a non-GAAP basis
|
$52.0
|
-
|
$53.0
|
|
|
|
|
|
Dollar
Range
|
Forecast income
from operations on a GAAP basis
|
$ 2.5
|
-
|
$ 3.5
|
Forecast amortization
of intangibles
|
0.2
|
Forecast share-based
compensation
|
2.8
|
Forecast Crossroads
patent litigation costs
|
0.3
|
Forecast Symform
expenses, net
|
0.2
|
Forecast income
from operations on a non-GAAP basis
|
$ 6.0
|
-
|
$ 7.0
|
|
|
|
|
|
Dollar
Range
|
Forecast net loss
on a GAAP basis
|
$ (1.8)
|
-
|
$ (0.8)
|
Forecast amortization
of intangibles
|
0.2
|
Forecast share-based
compensation
|
2.8
|
Forecast Crossroads
patent litigation costs
|
0.3
|
Forecast Symform
expenses, net
|
0.2
|
Forecast loss on debt
extinguishment
|
1.3
|
Forecast net
income on a non-GAAP basis
|
$ 3.0
|
-
|
$ 4.0
|
|
|
|
|
|
Dollars per
Share
|
Forecast diluted
earnings per share on a GAAP basis
|
$ (0.01)
|
-
|
$ (0.00)
|
Forecast amortization
of intangibles
|
0.00
|
Forecast share-based
compensation
|
0.01
|
Forecast Crossroads
patent litigation costs
|
0.00
|
Forecast Symform
expenses, net
|
0.00
|
Forecast loss on debt
extinguishment
|
0.01
|
Forecast diluted
earnings per share on a non-GAAP basis
|
$ 0.01
|
-
|
$ 0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimates based on
current (January 29, 2015) projections.
|
|
|
|
|
The projected GAAP
and non-GAAP financial information set forth in this table
represent forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. For risk factors
that could impact these projections, see our Annual Report on Form
10-K as filed with the SEC on June 6, 2014. We disclaim any
obligation to update information in any forward-looking
statement.
|
|
|
|
|
The non-GAAP
financial information set forth in this table is not prepared in
accordance with generally accepted accounting principles and may be
different from non-GAAP financial information used by other
companies.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/quantum-corporation-reports-fiscal-third-quarter-2015-results-300028137.html
SOURCE Quantum Corp.