Seguridad Mania.com - España y América Latina

SAN JOSE, CA -- (Marketwired) -- 08/01/13 -- Quantum Corp. (NYSE: QTM)

Highlights include:

• Total revenue of $148 million, up 5% year-over-year
• Disk systems and software revenue of $31 million, up 2% year-over-year
• Revenue growth of 23% for midrange DXi appliances and 13% for big data solutions
• $20 million year-over-year improvement in net income to highest level in six quarters
  
  

Quantum Corp. (NYSE: QTM), a proven global expert in data protection and big data management, today reported results for the first quarter of fiscal 2014 (FQ1'14), ended June 30, 2013. Revenue for the quarter totaled $148 million, up 5 percent from the first quarter of fiscal 2013 (FQ1'13), primarily due to a $15 million one-time royalty payment associated with an intellectual property agreement. Quantum generated revenue of $31 million from disk system and software sales (including related service), a 2 percent increase over FQ1'13 driven mostly by growth of 23 percent in midrange DXi® revenue and 13 percent in big data sales.

Quantum reported GAAP net income of $3 million, or 1 cent per diluted share, for FQ1'14, compared to a GAAP net loss of $17 million in the same quarter of last year. On a non-GAAP basis, the company had net income of $12 million, or 4 cents per diluted share, up from a net loss of $8 million a year earlier. The year-over-year increases were largely driven by the higher overall revenue.

"Our June quarter results clearly reflect the benefits of our strong intellectual property portfolio and the actions we've taken to drive growth and profit," said Jon Gacek, president and CEO of Quantum. "With a few exceptions, our revenue performance was generally good and in line with our expectations, and we were particularly pleased by the double-digit growth we generated in midrange DXi and overall StorNext® revenue. We also significantly improved our gross margin rates and operating income, even without the additional royalty revenue resulting from the intellectual property agreement we concluded during the quarter.

"Moving forward we will maintain our balanced approach of driving revenue growth and spending wisely to generate cash and profit. This will include the continued expansion of our data protection and big data management offerings for physical, virtual and cloud environments, leveraging our technology leadership to help customers store, manage and quickly access their increasingly valuable digital content throughout its lifecycle."

Quantum generated $9 million in cash from operations in FQ1'14, ending the quarter with $80 million in total cash and cash equivalents.

Outlook
For the second quarter of fiscal 2014, Quantum expects:

• Revenue of approximately $135 million to $140 million.
• GAAP gross margin rate of approximately 41 to 42 percent and non-GAAP gross margin rate of 42 to 43 percent.
• GAAP operating expenses of $63 million to $65 million and non-GAAP operating expenses of $58 million to $60 million.
• Interest expense of $2.5 million and taxes of $500,000.
  
  

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

• Quantum expanded its Lattus™ object storage product line to include a lower-capacity, lower-cost model that extends its value beyond big data archive for large enterprises to smaller organizations with rapidly growing big data archives as well as commercial data center customers seeking a consolidated backup and archive solution. Lattus enables nearline access to archived data in an extremely durable, scalable and cost-effective disk solution that never requires a "forklift" upgrade -- a forever disk archive.
• The company continued to expand and enhance its virtual data protection technologies, announcing that its vmPRO™ software can now leverage Scalar LTFS tape technology to provide user-accessible, searchable archive capabilities for VMware data. In addition, Quantum introduced DXi V4000, an all-software, all-virtual solution delivering up to 24 TB of usable capacity for deduplication and replication to other DXi appliances and its Q-Cloud service.
• Quantum announced a partnership with BlackBridge Networks Ltd., a Canadian cloud and colocation company, to provide cloud-based enterprise backup as a service in Canada. BlackBridge Stratus - Powered by Quantum™ enables customers to protect data both locally and in the BlackBridge secure cloud, leveraging Quantum's DXi and vmPRO technologies.
• Revenue from sales of the company's Scalar i500 tape library surpassed $1 billion. The Scalar i500, which offers best-in-class scalability, reliability, intelligence and management for midrange and enterprise environments, is the highest selling library in Quantum's history. In addition, Quantum's Scalar i6000 was named "Tape Based Product of the Year" at the 2013 Storage Awards: The Storries X.
• A lab evaluation conducted by industry analyst firm Enterprise Strategy Group affirmed the market-leading performance, scalability and security of Quantum's DXi6800 backup and deduplication appliance as well as the strength of the company's overall data protection portfolio in meeting customers' needs across physical, virtual and cloud environments.
  

Conference Call and Audio Webcast Notification
Quantum will hold a conference call today, Aug. 1, 2013, at 2:00 p.m. PDT, to discuss its fiscal first quarter results. Press and industry analysts are invited to attend in listen-only mode. Dial-in number: (480) 629-9867 (U.S. & International). Quantum will provide a live audio webcast of the conference call beginning today, Aug. 1, 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.

Quantum, the Quantum logo, Be Certain, DXi, Lattus, Scalar, StorNext, vmPRO and BlackBridge Stratus - Powered by Quantum 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 regarding our go-forward business approaches and priorities, our product and technology expansion plans, expected product features and performance 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 7, 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, restructuring charges and share-based compensation expense 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.

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.

Note 1

In the first quarter of fiscal year 2014, Quantum identified an error related to the accounting for certain allowances for estimated future price adjustments to customers which impacted prior reporting periods. In addition, the company had previously identified errors related to the accrual for sales commissions that also impacted prior reporting periods. While these errors were not material to any previously issued annual or quarterly consolidated financial statements, management concluded that correcting the errors in the current quarter would be material to the current quarter's consolidated financial statements. Quantum will revise its prior period annual and quarterly consolidated financial statements to correct the errors when next presented in future SEC filings.

In this earnings release, the company has revised the March 31, 2013 Condensed Consolidated Balance Sheet and the Condensed Consolidated Statements of Operations and Cash Flows for the quarter ended June 30, 2012 to record additional accounts receivable allowance for future price adjustments and revised sales commission expense. The net impact of the revision was to reduce the previously reported net loss for the quarter ended June 30, 2012 by $800,000 and increase the previously reported accumulated deficit and stockholders' deficit at March 31, 2013 by $2.2 million.

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

                                                Three Months Ended June 30,
                                                    2013           2012
                                               -------------  -------------
                                                                  (Revised)
                                                                     Note 1
Revenue:
  Product                                      $      85,969  $      93,785
  Service                                             36,492         36,087
  Royalty                                             25,508         10,981
                                               -------------  -------------
    Total revenue                                    147,969        140,853
Cost of revenue:
  Product                                             58,783         64,750
  Service                                             19,231         20,304
                                               -------------  -------------
    Total cost of revenue                             78,014         85,054
                                               -------------  -------------
      Gross margin                                    69,955         55,799

  Operating expenses:
    Research and development                          16,694         18,549
    Sales and marketing                               30,158         34,444
    General and administrative                        14,697         16,780
    Restructuring charges                              2,559             --
                                               -------------  -------------
                                                      64,108         69,773
                                               -------------  -------------
      Income (loss) from operations                    5,847        (13,974)
  Other income and expense                               375           (338)
  Interest expense                                    (2,439)        (1,849)
                                               -------------  -------------
      Income (loss) before income taxes                3,783        (16,161)
  Income tax provision                                   390            499
                                               -------------  -------------
      Net income (loss)                        $       3,393  $     (16,660)
                                               =============  =============

  Basic and diluted net income (loss) per
   share                                       $        0.01  $       (0.07)

  Weighted average common and common
   equivalent shares:
      Basic                                          243,309        236,628
      Diluted                                        245,844        236,628



  Included in the above Statements of
   Operations:

  Amortization of intangibles:
      Cost of revenue                          $         368  $       1,362
      Sales and marketing                              1,856          3,256
                                               -------------  -------------
                                                       2,224          4,618
  Share-based compensation:
      Cost of revenue                                    528            571
      Research and development                           868            900
      Sales and marketing                              1,074          1,084
      General and administrative                         886          1,732
                                               -------------  -------------
                                                       3,356          4,287

Note 1 is presented above, before the Condensed Consolidated Statements of
Operations.



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

                                                                March 31,
                                               June 30, 2013      2013*
                                               -------------  -------------
                                                                  (Revised)
                                                                     Note 1
                    Assets
Current assets:
  Cash and cash equivalents                    $      76,731  $      68,976
  Restricted cash                                      3,104          3,023
  Accounts receivable                                 86,967         97,546
  Manufacturing inventories                           51,290         53,075
  Service parts inventories                           31,876         35,368
  Other current assets                                12,760         12,192
                                               -------------  -------------
    Total current assets                             262,728        270,180

Long-term assets:
  Property and equipment                              20,216         21,456
  Intangible assets                                   10,589         12,813
  Goodwill                                            55,613         55,613
  Other long-term assets                               9,264          9,531
                                               -------------  -------------
    Total long-term assets                            95,682         99,413

                                               -------------  -------------
                                               $     358,410  $     369,593
                                               =============  =============

     Liabilities and Stockholders' Deficit
Current liabilities:
  Accounts payable                             $      35,274  $      47,634
  Accrued warranty                                     7,015          7,520
  Deferred revenue, current                           88,321         91,108
  Accrued restructuring charges, current               4,117          3,021
  Accrued compensation                                28,599         30,964
  Other accrued liabilities                           18,842         20,188
                                               -------------  -------------
    Total current liabilities                        182,168        200,435

Long-term liabilities:
  Deferred revenue, long-term                         39,011         38,393
  Convertible subordinated debt                      205,000        205,000
  Other long-term liabilities                          9,540          9,547
                                               -------------  -------------
    Total long-term liabilities                      253,551        252,940

  Stockholders' deficit                              (77,309)       (83,782)

                                               -------------  -------------
                                               $     358,410  $     369,593
                                               =============  =============

*Derived from the March 31, 2013 audited Consolidated Financial Statements.
Note 1 is presented above, before the Condensed Consolidated Statements of
Operations.



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

                                                Three Months Ended June 30,
                                                    2013           2012
                                               -------------  -------------
                                                                (Revised)
                                                                  Note 1

Cash flows from operating activities:
  Net income (loss)                            $       3,393  $     (16,660)
    Adjustment to reconcile net income (loss)
     to net cash provided by (used in)
     operating activities:
      Depreciation                                     2,872          3,021
      Amortization                                     2,633          4,912
      Service parts lower of cost or market
       adjustment                                      4,028          2,029
      Deferred income taxes                              128            382
      Share-based compensation                         3,356          4,287
      Changes in assets and liabilities:
        Accounts receivable                           10,579         24,009
        Manufacturing inventories                        337         (4,603)
        Service parts inventories                        913            722
        Accounts payable                             (12,372)        (8,891)
        Accrued warranty                                (505)           211
        Deferred revenue                              (2,169)        (7,351)
        Accrued restructuring charges                  1,026           (484)
        Accrued compensation                          (2,370)        (1,138)
        Other assets and liabilities                  (2,676)        (1,555)
                                               -------------  -------------
Net cash provided by (used in) operating
 activities                                            9,173         (1,109)

Cash flows from investing activities:
  Purchases of property and equipment                 (1,230)        (3,984)
  (Increase) decrease in restricted cash                 (37)           109
  Return of principal from other investments               -            208
                                               -------------  -------------
Net cash used in investing activities                 (1,267)        (3,667)

Cash flows from financing activities:
  Payment of taxes due upon vesting of
   restricted stock                                     (203)          (321)
  Proceeds from issuance of common stock                  60            176
                                               -------------  -------------
Net cash used in financing activities                   (143)          (145)

Effect of exchange rate changes on cash and
 cash equivalents                                         (8)           (70)

Net increase (decrease) in cash and cash
 equivalents                                           7,755         (4,991)
Cash and cash equivalents at beginning of
 period                                               68,976         51,261
                                               -------------  -------------
Cash and cash equivalents at end of period     $      76,731  $      46,270
                                               =============  =============

Note 1 is presented above, before the Condensed Consolidated Statements of
Operations.



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

                                 Three Months Ended June 30, 2013
                      -----------------------------------------------------
                                                       Per Share  Per Share
                                    Gross                 Net        Net
                         Gross     Margin      Net      Income,    Income,
                        Margin      Rate      Income     Basic     Diluted
                      ---------- ---------- ---------  ---------  ---------
GAAP                  $   69,955      47.3% $   3,393  $    0.01  $    0.01
Non-GAAP Reconciling
 Items:
  Amortization of
   intangibles               368                2,224
  Share-based
   compensation              528                3,356
  Restructuring
   charges                                      2,559
                      ----------            ---------
Non-GAAP              $   70,851      47.9% $  11,532  $    0.05  $    0.04

    Computation of
     basic and
     diluted net
     income per
     share:                                               GAAP     Non-GAAP
                                                       ---------  ---------
      Net income                                       $   3,393  $  11,532
        Interest on
         dilutive
         convertible
         notes                                                 -      1,969
                                                       ---------  ---------
      Income for
       purposes of
       computing
       income per
       diluted share                                   $   3,393  $  13,501
                                                       =========  =========

    Weighted average
     shares:
      Basic                                              243,309    243,309
        Dilutive
         shares from
         stock plans                                       2,535      2,535
        Dilutive
         shares from
         convertible
         notes                                                 -     73,660
                                                       ---------  ---------
      Diluted                                            245,844    319,504
                                                       =========  =========


                        Three Months Ended June 30, 2012 (Revised) Note 1
                      -----------------------------------------------------
                                    Gross              Per Share  Per Share
                         Gross     Margin              Net Loss,  Net Loss,
                        Margin      Rate     Net Loss    Basic     Diluted
                      ---------- ---------- ---------  ---------  ---------
GAAP                  $   55,799      39.6% $ (16,660) $   (0.07) $   (0.07)
Non-GAAP Reconciling
 Items:
  Amortization of
   intangibles             1,362                4,618
  Share-based
   compensation              571                4,287
                      ----------            ---------
Non-GAAP              $   57,732      41.0% $  (7,755) $   (0.03) $   (0.03)

    Computation of
     basic and
     diluted net loss
     per share:                                           GAAP     Non-GAAP
                                                       ---------  ---------
      Net loss                                         $ (16,660) $  (7,755)
        Interest on
         dilutive
         convertible
         notes                                                 -          -
                                                       ---------  ---------
      Loss for
       purposes of
       computing loss
       per diluted
       share                                           $ (16,660) $  (7,755)
                                                       =========  =========

    Weighted average
     shares:
      Basic                                              236,628    236,628
        Dilutive
         shares from
         stock plans                                           -          -
        Dilutive
         shares from
         convertible
         notes                                                 -          -
                                                       ---------  ---------
      Diluted                                            236,628    236,628
                                                       =========  =========

Note 1 is presented above, before the Condensed Consolidated Statements of
Operations.


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
                     FORECAST SECOND QUARTER FISCAL 2014
                       GAAP TO NON-GAAP RECONCILIATION
                            (Dollars in millions)

                                                        --------------------
                                                          Percentage range
                                                        --------------------

Forecast second quarter gross margin rate on a GAAP
 basis                                                      41.2% - 42.3%

Forecast amortization of intangibles                            0.3%
Forecast share-based compensation                            0.4% - 0.5%

                                                        --------------------
Forecast second quarter gross margin rate on a non-GAAP
 basis                                                      42.0% - 43.0%
                                                        ====================


                                                        --------------------
                                                            Dollar range
                                                        --------------------

Forecast second quarter operating expense on a GAAP
 basis                                                     $ 63.0 - $ 65.0

Forecast amortization of intangibles                             1.9
Forecast share-based compensation                                3.1

                                                        --------------------
Forecast second quarter operating expense on a non-GAAP
 basis                                                     $ 58.0 - $ 60.0
                                                        ====================

Estimates based on current (August 1, 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 7, 2013. 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.