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SAN JOSE, CA -- (Marketwired) -- 05/08/13 -- Quantum Corp. (NYSE: QTM), a proven global expert in data protection and big data management, today reported results for fiscal 2013 (FY13) and the fourth quarter (FQ4'13), ended March 31, 2013. Revenue for the year totaled $588 million, down 10 percent from fiscal 2012 (FY12), primarily due to decreased market demand for tape products. Quantum reported record revenue of $152 million from disk systems and software sales (including related service), an 11 percent increase over FY12 driven by record revenue from both StorNext® and midrange DXi® sales. For FQ4'13, Quantum reported $140 million in revenue, a 13 percent decline from the same period last year (FQ4'12), also primarily due to lower demand for tape. Disk systems and software revenue (including related service) grew for the seventh consecutive quarter on a year-over-year basis.

Quantum reported a GAAP net loss for FY13 of $52 million, or 22 cents per diluted share, compared to $9 million in the prior year. On a non-GAAP basis, Quantum had a net loss of $14 million for the year, or 6 cents per diluted share, down from $30 million of net income in FY12. For FQ4'13, Quantum had a GAAP net loss of $15 million, or 6 cents per diluted share, compared to a net loss of $11 million in the same quarter last year. Non-GAAP net loss for FQ4'13 was $5 million, or 2 cents per diluted share, down from $1 million of net income a year earlier. The year-over-year declines were largely due to the lower tape product and royalty revenue.

"Although this was a challenging year for storage generally, and a particularly tough one for tape, we grew our disk systems and software revenue to a new high, maintained our market share leadership in tape, introduced a broad range of innovative new products and further improved our balance sheet," said Jon Gacek, president and CEO of Quantum. "We will build on this progress in the new fiscal year to drive a balance of growth and profit, and we are well-positioned to do so.

"Our product portfolio is a key strength, and we will continue to be aggressive about utilizing our technology assets to create products and solutions that are clearly differentiated and deliver superior value to customers in both data protection and big data management. This will include new deduplication, virtualization, cloud, workflow and archive offerings."

Quantum generated $16 million in cash from operations in FQ4'13 and ended FY13 with $72 million in total cash and cash equivalents.

Outlook
For the full 2014 fiscal year, Quantum expects:

• Total revenue of $610 million to $630 million.
• GAAP and non-GAAP gross margin rates in the mid-40 percent range.
• GAAP and non-GAAP operating expenses of $265 million to $270 million and $245 million to $250 million, respectively.
• Interest expense of $10 million and taxes of $2 million.
• GAAP loss per share of 5 cents to breakeven and non-GAAP earnings per share of 5 cents to 10 cents.

For the first quarter of fiscal 2014, the company expects:

• Total revenue of $135 million to $140 million.
• GAAP gross margin rate of 41 to 42 percent and non-GAAP gross margin rate of 42 to 43 percent.
• GAAP and non-GAAP operating expenses of $65 million to $67 million and $60 million to $62 million, respectively.
• Interest expense of $2.5 million and taxes of $500,000.

Business Highlights
Key business highlights for the March quarter include the following:

• Quantum announced the DXi6800 backup and deduplication appliance, which combines industry-leading performance, scalability and efficiency with unique "pay-as-you-grow" extensibility to deliver better overall value than the market leader. The new appliance provides up to 16 TB/hour performance, 13-156 TB of usable capacity in a single system and the smallest footprint per TB available. It can replicate to Quantum Q-Cloud™, enabling cloud-based data protection and disaster recovery, and also integrates with Symantec NetBackup AIR, reducing the time needed to return to business in the event of a disaster.
• The company introduced its new Scalar i6000 HD enterprise tape library, offering best-in-class slot density and scalability as well as high performance and availability. Designed to address customers' big data and archive needs with slot densities that are twice those offered by competitors, the Scalar i6000 HD makes nearly 5 PB of data available in a single 19" rack and scales to more than 75 PB of capacity. It also incorporates new high-availability and management features, including active-active dual robotics for fast data access times.
• Contributing to the strong growth in StorNext appliance sales, the StorNext M440 Metadata Appliance began its first full quarter of availability. It enables central control of up to 500 million files for management of large-scale, fast-growing datasets, including petabytes of tiered content archives. Quantum also started early shipments of its StorNext QX Storage, primary disk storage optimized for StorNext collaborative workflow environments. Both appliances are 100 percent compatible with the large installed base of Apple Xsan solutions and ideal for mid-sized creative workflow environments.
• In the latest global accolades for the company's deduplication products, DXi6800 won the Initiative Mittelstand Innovation IT Award 2013 at the CeBIT trade show, and the DXi6701/02 took top honors as the Network Computing 2013 Product of the Year Award in the Storage Product category. In addition, Turner Studios' Sports Central received a prestigious 2012 Excellence Award from Broadcast Engineering magazine for a solution it created to streamline and centralize the video ingest, management and multi-screen distribution of its sports content. Turner uses Quantum's StorNext File System and StorNext Storage Manager™ software to manage the high-performance sharing, accessing and archiving of content within the system.

Conference Call and Audio Webcast Notification
Quantum will hold a conference call today, May 8, 2013, at 2:00 p.m. PDT, to discuss its fiscal fourth quarter and full year results. Press and industry analysts are invited to attend in listen-only mode. Dial-in number: (480) 629-9835 (U.S. & International). Quantum will provide a live audio webcast of the conference call beginning today, May 8, 2013, at 2:00 p.m. PDT. Site for the webcast and related information: www.quantum.com/investors.

About Quantum
Quantum is a proven global expert in data protection and big data management, providing specialized storage solutions for physical, virtual and cloud environments. From small businesses to major enterprises, more than 100,000 customers have trusted Quantum to help maximize the value of their data by protecting and preserving it over its entire lifecycle. With Quantum, customers can Be Certain™ they're able to adapt in a changing world -- keeping more data longer, bridging from today to tomorrow, and reducing costs. See how at www.quantum.com/BeCertain.

Quantum, the Quantum logo, Be Certain, DXi, Scalar, StorNext and Q-Cloud 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 statements that we will build on our progress to drive a balance of growth and profit in the new year, and that we will continue to be aggressive about utilizing our technology assets in our product development efforts and all of our statements under the "Outlook" section 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 14, 2012 and in Quantum's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 8, 2013. 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 uses 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 acquisition expenses, amortization of intangibles, loss on debt extinguishment, restructuring charges and share-based compensation expense for the following reasons:

Acquisition Expenses
The acquisition expenses were those expenses incurred to acquire Pancetera, Inc. and are not part of Quantum's future core operations.

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.

Loss on Debt Extinguishment
The loss on debt extinguishment relates to specific debt refinancing actions and is not part of Quantum's future core operations.

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.

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. As a result, management excludes this item from Quantum's internal operating forecasts and models. 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.

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.

                            QUANTUM CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share amounts)
                                (Unaudited)

                                  Three Months Ended    Twelve Months Ended
                                 --------------------  --------------------
                                 March 31,  March 31,  March 31,  March 31,
                                    2013       2012       2013       2012
                                 ---------  ---------  ---------  ---------

Revenue:
  Product                        $  92,648  $ 109,865  $ 399,043  $ 451,340
  Service                           36,899     36,408    144,037    144,364
  Royalty                           10,411     14,031     44,492     56,666
                                 ---------  ---------  ---------  ---------
    Total revenue                  139,958    160,304    587,572    652,370
Cost of revenue:
  Product                           62,633     72,332    267,274    290,376
  Service                           19,721     22,727     79,647     88,459
  Restructuring benefit related
   to cost of revenue                   --         --         --       (300)
                                 ---------  ---------  ---------  ---------
    Total cost of revenue           82,354     95,059    346,921    378,535
                                 ---------  ---------  ---------  ---------
      Gross margin                  57,604     65,245    240,651    273,835

Operating expenses:
  Research and development          17,321     19,153     73,960     74,365
  Sales and marketing               33,734     35,948    137,041    130,938
  General and administrative        15,269     15,919     62,179     62,910
  Restructuring charges              3,569      1,231     10,171      1,930
                                 ---------  ---------  ---------  ---------
    Total operating expenses        69,893     72,251    283,351    270,143
Gain on sale of patents                 --         --         --      1,500
                                 ---------  ---------  ---------  ---------
  Income (loss) from operations    (12,289)    (7,006)   (42,700)     5,192

Other income and expense               172        304       (216)      (118)
Interest expense                    (2,446)    (2,575)    (8,342)   (10,686)
Loss on debt extinguishment             --     (2,310)        --     (2,310)
                                 ---------  ---------  ---------  ---------
        Loss before income taxes   (14,563)   (11,587)   (51,258)    (7,922)
Income tax provision (benefit)         (56)      (529)     1,161        887
                                 ---------  ---------  ---------  ---------
        Net loss                 $ (14,507) $ (11,058) $ (52,419) $  (8,809)
                                 =========  =========  =========  =========


Basic and diluted net loss per
 share                           $   (0.06) $   (0.05) $   (0.22) $   (0.04)

Basic and diluted weighted
 average shares                    242,165    235,429    239,855    232,599



Included in the above Statements
 of Operations:

Amortization of intangibles:
  Cost of revenue                $     368  $   1,435  $   3,775  $   7,583
  Sales and marketing                1,856      3,256      9,524     13,128
  General and administrative            --         --         --         32
                                 ---------  ---------  ---------  ---------
                                     2,224      4,691     13,299     20,743
Share-based compensation:
  Cost of revenue                      550        685      2,389      2,203
  Research and development             893        784      3,665      3,250
  Sales and marketing                1,096        989      4,699      4,048
  General and administrative           871      1,033      4,386      4,236
                                 ---------  ---------  ---------  ---------
                                     3,410      3,491     15,139     13,737

Acquisition expenses                    --         --         --        325



                             QUANTUM CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                                 (Unaudited)


                                                       March 31,  March 31,
                                                          2013      2012*
                                                       ---------  ---------

                        Assets
Current assets:
  Cash and cash equivalents                            $  68,976  $  51,261
  Restricted cash                                          3,023      4,230
  Accounts receivable                                     99,093    110,840
  Manufacturing inventories                               53,075     61,111
  Service parts inventories                               35,368     39,050
  Other current assets                                    12,192     14,729
                                                       ---------  ---------
    Total current assets                                 271,727    281,221

Long-term assets:
  Property and equipment                                  21,456     25,440
  Intangible assets and goodwill                          68,426     81,725
  Other long-term assets                                   9,531      6,962
                                                       ---------  ---------
    Total long-term assets                                99,413    114,127

                                                       ---------  ---------
                                                       $ 371,140  $ 395,348
                                                       =========  =========

         Liabilities and Stockholders' Deficit
Current liabilities:
  Accounts payable                                     $  47,634  $  56,304
  Accrued warranty                                         7,520      7,586
  Deferred revenue, current                               91,108     93,441
  Accrued restructuring charges                            4,756      1,752
  Accrued compensation                                    30,311     31,971
  Other accrued liabilities                               20,188     18,999
                                                       ---------  ---------
    Total current liabilities                            201,517    210,053

Long-term liabilities:
  Deferred revenue, long-term                             38,393     36,430
  Long-term debt                                              --     49,495
  Convertible subordinated debt                          205,000    135,000
  Other long-term liabilities                              7,812     11,050
                                                       ---------  ---------
    Total long-term liabilities                          251,205    231,975

  Stockholders' deficit                                  (81,582)   (46,680)

                                                       ---------  ---------
                                                       $ 371,140  $ 395,348
                                                       =========  =========

* Derived from the March 31, 2012 audited Consolidated Financial Statements.



                            QUANTUM CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                (Unaudited)

                                                        Twelve Months Ended
                                                       --------------------
                                                       March 31,  March 31,
                                                          2013       2012
                                                       ---------  ---------
Cash flows from operating activities:
  Net loss                                             $ (52,419) $  (8,809)
  Adjustments to reconcile net loss to net cash
   provided by operating activities:
    Depreciation                                          12,413     11,774
    Amortization                                          14,646     23,101
    Service parts lower of cost or market adjustment      10,081     10,736
    Loss on debt extinguishment                               --      2,310
    Deferred income taxes                                   (142)    (1,280)
    Share-based compensation                              15,139     13,737
    Changes in assets and liabilities, net of effect of
     acquisition:
      Accounts receivable                                 11,747      4,134
      Manufacturing inventories                           (2,098)   (21,373)
      Service parts inventories                            3,735      3,642
      Accounts payable                                    (8,630)     4,107
      Accrued warranty                                       (66)       552
      Deferred revenue                                      (370)     8,073
      Accrued restructuring charges                        3,009     (2,284)
      Accrued compensation                                (1,452)       810
      Other assets and liabilities                         2,142     (3,570)
                                                       ---------  ---------
Net cash provided by operating activities                  7,735     45,660

Cash flows from investing activities:
  Purchases of property and equipment                    (10,099)   (11,414)
  (Increase) decrease in restricted cash                   1,113     (2,505)
  Purchases of other investments                          (2,169)        --
  Return of principal from other investments                 247         97
  Payment for business acquisition, net of cash
   acquired                                                   --     (8,152)
                                                       ---------  ---------
Net cash used in investing activities                    (10,908)   (21,974)

Cash flows from financing activities:
  Borrowings of long-term debt, net                           --     48,535
  Repayments of long-term debt                           (49,495)  (104,334)
  Borrowings of convertible subordinated debt, net        67,701         --
  Payment of taxes due upon vesting of restricted stock   (2,036)    (2,944)
  Proceeds from issuance of common stock                   4,805     10,390
                                                       ---------  ---------
Net cash provided by (used in) financing activities       20,975    (48,353)

Effect of exchange rate changes on cash and cash
 equivalents                                                 (87)       (82)

Net increase (decrease) in cash and cash equivalents      17,715    (24,749)
Cash and cash equivalents at beginning of period          51,261     76,010
                                                       ---------  ---------
Cash and cash equivalents at end of period             $  68,976  $  51,261
                                                       =========  =========



                            QUANTUM CORPORATION
                      GAAP TO NON-GAAP RECONCILIATION
                  (In thousands, except per share amounts)
                                (Unaudited)

                                    Three Months Ended March 31, 2013
                             ----------------------------------------------
                                                            Per       Per
                                                           Share     Share
                                        Gross               Net       Net
                               Gross   Margin              Loss,     Loss,
                              Margin    Rate   Net Loss    Basic    Diluted
                             --------  ------  --------  --------  --------
GAAP                         $ 57,604    41.2% $(14,507) $  (0.06) $  (0.06)
Non-GAAP Reconciling Items:
  Amortization of intangibles     368             2,224
  Share-based compensation        550             3,410
  Restructuring charges            --             3,569
                             --------          --------
Non-GAAP                     $ 58,522    41.8% $ (5,304) $  (0.02) $  (0.02)

                                                           GAAP    Non-GAAP
                                                         --------  --------
    Computation of basic and
     diluted net loss per
     share:
      Net loss                                           $(14,507) $ (5,304)

    Weighted average shares:
      Basic                                               242,165   242,165
        Dilutive shares from
         stock plans                                           --        --
        Dilutive shares from
         convertible notes                                     --        --
                                                         --------  --------
      Diluted                                             242,165   242,165
                                                         ========  ========

                                   Twelve Months Ended March 31, 2013
                             ----------------------------------------------
                                                            Per       Per
                                                           Share     Share
                                        Gross               Net       Net
                               Gross   Margin              Loss,     Loss,
                              Margin    Rate   Net Loss    Basic    Diluted
                             --------  ------  --------  --------  --------
GAAP                         $240,651    41.0% $(52,419) $  (0.22) $  (0.22)
Non-GAAP Reconciling Items:
  Amortization of intangibles   3,775            13,299
  Share-based compensation      2,389            15,139
  Restructuring charges            --            10,171
                             --------          --------
Non-GAAP                     $246,815    42.0% $(13,810) $  (0.06) $  (0.06)

                                                           GAAP    Non-GAAP
                                                         --------  --------
    Computation of basic and
     diluted net loss per
     share:
      Net loss                                           $(52,419) $(13,810)

    Weighted average shares:
      Basic                                               239,855   239,855
        Dilutive shares from
         stock plans                                           --        --
        Dilutive shares from
         convertible notes                                     --        --
                                                         --------  --------
      Diluted                                             239,855   239,855
                                                         ========  ========


                                    Three Months Ended March 31, 2012
                             ----------------------------------------------
                                                            Per       Per
                                                           Share     Share
                                                            Net       Net
                                        Gross     Net     Income    Income
                               Gross   Margin   Income    (Loss),   (Loss),
                              Margin    Rate    (Loss)     Basic    Diluted
                             --------  ------  --------  --------  --------
GAAP                         $ 65,245    40.7% $(11,058) $  (0.05) $  (0.05)
Non-GAAP Reconciling Items:
  Amortization of intangibles   1,435             4,691
  Share-based compensation        685             3,491
  Restructuring charges            --             1,231
  Loss on debt extinguishment      --             2,310
                             --------          --------
Non-GAAP                     $ 67,365    42.0% $    665  $   0.00  $   0.00

                                                           GAAP    Non-GAAP
                                                         --------  --------
    Computation of basic and
     diluted net income
     (loss) per share:
      Net income (loss)                                  $(11,058) $    665
        Interest on dilutive
         convertible notes                                     --        --
                                                         --------  --------
      Income (loss) for
       purposes of computing
       income (loss) per
       diluted share                                     $(11,058) $    665
                                                         ========  ========

    Weighted average shares:
      Basic                                               235,429   235,429
        Dilutive shares from
         stock plans                                           --     6,321
        Dilutive shares from
         convertible notes                                     --        --
                                                         --------  --------
      Diluted                                             235,429   241,750
                                                         ========  ========

                                   Twelve Months Ended March 31, 2012
                             ----------------------------------------------
                                                            Per       Per
                                                           Share     Share
                                                            Net       Net
                                        Gross     Net     Income    Income
                               Gross   Margin   Income    (Loss),   (Loss),
                              Margin    Rate    (Loss)     Basic    Diluted
                             --------  ------  --------  --------  --------
GAAP                         $273,835    42.0% $ (8,809) $  (0.04) $  (0.04)
Non-GAAP Reconciling Items:
  Amortization of intangibles   7,583            20,743
  Share-based compensation      2,203            13,737
  Restructuring charges          (300)            1,630
  Loss on debt extinguishment      --             2,310
  Acquisition expenses             --               325
                             --------          --------
Non-GAAP                     $283,321    43.4% $ 29,936  $   0.13  $   0.12

                                                           GAAP    Non-GAAP
                                                         --------  --------
    Computation of basic and
     diluted net income
     (loss) per share:
      Net income (loss)                                  $ (8,809) $ 29,936
        Interest on dilutive
         convertible notes                                     --        --
                                                         --------  --------
      Income (loss) for
       purposes of computing
       income (loss) per
       diluted share                                     $ (8,809) $ 29,936
                                                         ========  ========

    Weighted average shares:
      Basic                                               232,599   232,599
        Dilutive shares from
         stock plans                                           --     7,028
        Dilutive shares from
         convertible notes                                     --        --
                                                         --------  --------
      Diluted                                             232,599   239,627
                                                         ========  ========

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
              FULL YEAR AND FIRST QUARTER FISCAL 2014 FORECASTS
                       GAAP TO NON-GAAP RECONCILIATION
               (Dollars in millions, except per share amounts)

                            FULL YEAR FISCAL 2014
----------------------------------------------------------------------------

For fiscal 2014, we forecast GAAP and non-GAAP gross margin rates in the mid-40 percent range, with non-GAAP gross margin approximately 60 basis points higher than GAAP gross margin, comprised of 0.2% for intangible amortization and 0.4% for share-based compensation.

                                                           ----------------
                                                             Dollar Range
                                                           ----------------
Forecast fiscal 2014 operating expense on a GAAP basis     $264.5  - $269.5

Forecast amortization of intangibles                              7.4
Forecast share-based compensation                                 12.1

                                                           ------    ------
Forecast fiscal 2014 operating expense on a non-GAAP basis $245.0  - $250.0
                                                           ======    ======


                                                           ----------------
                                                             Dollar Range
                                                           ----------------
Forecast fiscal 2014 diluted earnings (loss) per share on
 a GAAP basis                                              $(0.05) - $ 0.00

Forecast amortization of intangibles                              0.04
Forecast share-based compensation                                 0.06

                                                           ------    ------
Forecast fiscal 2014 diluted earnings per share on a non-
 GAAP basis                                                $ 0.05  - $ 0.10
                                                           ======    ======


                         FIRST QUARTER FISCAL 2014
---------------------------------------------------------------------------

                                                           ----------------
                                                           Percentage Range
                                                           ----------------
Forecast first quarter fiscal 2014 gross margin rate on a
 GAAP basis                                                  41.3% -   42.3%

Forecast amortization of intangibles                              0.3%
Forecast share-based compensation                                 0.4%

                                                           ------    ------
Forecast first quarter fiscal 2014 gross margin rate on a
 non-GAAP basis                                              42.0% -   43.0%
                                                           ======    ======


                                                           ----------------
                                                             Dollar Range
                                                           ----------------
Forecast first quarter fiscal 2014 operating expense on a
 GAAP basis                                                $ 64.9  - $ 66.9

Forecast amortization of intangibles                              1.9
Forecast share-based compensation                                 3.0

                                                           ------    ------
Forecast first quarter fiscal 2014 operating expense on a
 non-GAAP basis                                            $ 60.0  - $ 62.0
                                                           ======    ======

Estimates based on current (May 8, 2013) 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 14, 2012. 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.