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SAN JOSE, CA -- (Marketwire) -- 05/09/12 -- Quantum Corp. (NYSE: QTM)

Earnings Highlights:

• Fiscal year revenue of $652 million, with branded growth of 2% over fiscal 2011
• Total disk systems and software revenue of $137 million in fiscal 2012 and $38 million in fourth quarter -- record branded disk systems and software sales, up 18% for the year and 28% for the quarter over respective prior year periods
• Third consecutive year of GAAP operating profit and ninth straight year of non-GAAP operating profit
• Year of continued product innovation, with enhancements to entire DXi deduplication portfolio, launch of StorNext big data appliance family and extension of data protection leadership into virtual and cloud environments

Quantum Corp. (NYSE: QTM), a proven global expert in data protection and big data management, today reported results for fiscal 2012 (FY12) and the fourth quarter (FQ4'12), ended March 31, 2012. Revenue for the year totaled $652 million, down 3 percent from fiscal 2011 (FY11), primarily due to expected decreases in OEM deduplication software revenue and royalty revenue. For FQ4'12, Quantum reported $160 million in revenue, a 3 percent decrease from the same period last year (FQ4'11). Branded revenue, which represented 81 percent of total non-royalty revenue for the year, grew 2 percent over FY11. Branded disk systems and software sales, including related service revenue, were a key contributor to this year-over-year growth, increasing 18 percent for FY12 and 28 percent for the fourth quarter.

Quantum reported a GAAP net loss for FY12 of $9 million (4 cents per diluted share), compared to net income of $5 million in the prior year. On a non-GAAP basis, Quantum generated $30 million in net income for the year (12 cents per diluted share), down from $49 million in FY11. For FQ4'12, Quantum had a GAAP net loss of $11 million (5 cents per diluted share), compared to a net loss of $2 million in FQ4'11. Non-GAAP net income for the quarter was $1 million (less than 1 cent per diluted share), down from $10 million in the same quarter of FY11. The year-over-year declines were largely due to expected reductions in OEM deduplication software revenue and royalty revenue for FY12 and decreased tape automation systems revenue for FQ4'12. Quantum's results also reflected a decision to increase sales and marketing spending in the fourth quarter to provide a stronger foundation for driving overall growth from the start of the new fiscal year. Finally, Quantum's GAAP results included a $2.3 million loss in FQ4'12 related to the refinancing of its senior debt, which is expected to save the company approximately $2 million in annual interest expense and bank fees, beginning with the current fiscal year.

"The March quarter capped off a year of strong performance in key growth areas," said Jon Gacek, president and CEO of Quantum. "In fiscal 2012, we increased overall branded revenue for the second consecutive year, with record revenues from both branded DXi® and branded StorNext® sales. It was also a year of continued technology and product innovation, as we enhanced our entire DXi product line, introduced a series of new StorNext appliances and added new features to our Scalar tape libraries. Shortly after acquiring Pancetera Software last June, we also launched Quantum vmPRO™ virtual server protection solutions and laid the groundwork for our recently announced cloud-based data protection platform.

"As we enter the new fiscal year, we are well-positioned to drive overall revenue growth, with industry-leading technology and products in some of the hottest segments of the storage market, including deduplication, virtualization and cloud services. We also are continuing to build on this leadership, as demonstrated by today's announcement regarding a new category of solutions that uniquely address the physical storage challenges in big data management and cloud environments. All of this reflects Quantum's transformation over the last few years and our ability to address a much broader range of customer needs in data protection and big data management with highly differentiated solutions optimized to deliver greater business value."

Quantum ended FY12 with $55 million in total cash and cash equivalents and $184 million in total debt. For the full year, the company generated $46 million in cash from operations and reduced its total debt by $55 million.

Outlook
For the full 2013 fiscal year, Quantum expects:

• Total revenue growth over FY12.
• GAAP and non-GAAP gross margin rates in the mid-40 percent range.
• GAAP and non-GAAP operating expenses of $280 million to $285 million and $255 million to $260 million, respectively.
• Interest expense of $8 million and taxes of $4 million.

For the first quarter of fiscal 2013, the company expects:

• Year-over-year revenue growth to approximately $155 million.
• GAAP gross margin rate of approximately 41 percent and non-GAAP gross margin rate of
  42 percent.
• GAAP and non-GAAP operating expenses of $70 million to $72 million and $63 million to $65 million, respectively.
• Interest expense of $2 million and taxes of $1 million.

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

• Quantum launched a new, all-virtual software platform to help customers take advantage of cloud-based data protection through a highly optimized, flexible approach that overcomes the limitations of other cloud offerings. Centered on Quantum vmPRO technology and a new virtual deduplication appliance, DXi V1000, this platform is a key component of Xerox's cloud backup and disaster recovery (DR) services announced earlier this year. It also serves as the foundation of a multi-faceted plan to make the benefits of Quantum's cloud-optimized technology available through other public and private cloud services, including new Quantum-branded offerings.
• Storage magazine and SearchStorage.com named Quantum's vmPRO 4000 virtual server protection appliance as "2011 Backup Hardware Product of the Year" in their annual awards, reflecting the company's success in extending its data protection leadership beyond physical environments. The vmPRO 4000 was recognized for superior innovation, performance, ease of integration and use, manageability, functionality and value.
• The DXi6700 family of midrange disk backup and deduplication appliances was named Storage Product of the Year at the 2012 Network Computing Awards in London. The awards recognize the hardware, software and services which have most impressed the readers of Network Computing, the UK's longest established computer networking publication. In addition, the DXi6700 was a finalist in the Storage magazine/SearchStorage.com Product of the Year awards.
• Quantum began shipping its StorNext G300 Gateway appliances which simplify and leverage high-speed networking technologies to provide virtual, highly available access over an IP connection to large data sets managed by the high-performance StorNext file system. In addition, the company added the new StorNext QS2400 Storage System to its primary disk product line, further building out its StorNext appliance offerings.
• Quantum also prepared for launch of its Scalar LTFS (Linear Tape File System) appliance, announced shortly after the quarter ended. Scalar LTFS, which is based on the LTFS open-standard for content formatting, offers new modes of portability and user accessibility for archived content on LTO tape. Because it works with existing application and file system tools, LTFS-based content can be easily managed, transported and accessed for long-term data protection and archival storage.

Conference Call and Audio Webcast Notification
Quantum will hold a conference call today, May 9, 2012, 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 9, 2012, at 2:00 p.m. PDT. Site for the webcast and related information: http://www.quantum.com/investors.

About Quantum
Quantum Corp. (NYSE: QTM) is a proven global expert in data protection and big data management that provides a unique combination of intelligent storage solutions and unmatched value for traditional, virtual and cloud environments. From small businesses to multinational enterprises, more than 50,000 customers trust Quantum to help cost effectively manage data growth and extract the full value from their digital assets. The company's offerings include: DXi®-Series disk-based deduplication and replication systems for fast backup and restore, Quantum vmPRO™ solutions for protecting virtual machine data, Scalar® tape automation products for disaster recovery and long-term data retention, and StorNext® big data management software and appliances for high-performance file sharing and archiving. Quantum Corp., 1650 Technology Drive, Suite 800, San Jose, CA 95110, (408) 944-4000, www.quantum.com.

Quantum, the Quantum logo, DXi, Scalar, StorNext and vmPRO 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 regarding driving revenue growth, our statements regarding new product offerings 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 "Item 1A. Risk Factors," in Quantum's Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 14, 2011 and Quantum's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 9, 2012. 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, senior debt amendment fees 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.

Senior Debt Amendment Fees
The senior debt amendment fees relate to a specific amendment fee and are not part of Quantum's future core 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,
                                    2012       2011       2012       2011
                                 ---------  ---------  ---------  ---------

Revenue:
  Product                        $ 109,865  $ 112,902  $ 451,340  $ 456,903
  Service                           36,408     37,365    144,364    151,095
  Royalty                           14,031     14,830     56,666     64,272
                                 ---------  ---------  ---------  ---------
    Total revenue                  160,304    165,097    652,370    672,270
Cost of revenue:
  Product                           72,332     73,217    290,376    294,375
  Service                           22,727     22,716     88,459     94,311
  Restructuring charges
   (benefit) related to cost of
   revenue                              --        602       (300)       602
                                 ---------  ---------  ---------  ---------
    Total cost of revenue           95,059     96,535    378,535    389,288
                                 ---------  ---------  ---------  ---------
      Gross margin                  65,245     68,562    273,835    282,982

  Operating expenses:
    Research and development        19,153     18,518     74,365     73,008
    Sales and marketing             35,948     31,795    130,938    122,768
    General and administrative      15,919     14,860     62,910     59,460
    Restructuring charges            1,231      3,031      1,930      3,042
                                 ---------  ---------  ---------  ---------
      Total operating expenses      72,251     68,204    270,143    258,278
  Gain on sale of patents               --         --      1,500          -
                                 ---------  ---------  ---------  ---------
      Income (loss) from
       operations                   (7,006)       358      5,192     24,704

  Other income and expense             304      1,175       (118)     1,199
  Interest expense                  (2,575)    (3,286)   (10,686)   (20,163)
  Loss on debt extinguishment       (2,310)        --     (2,310)    (1,186)
                                 ---------  ---------  ---------  ---------
      Income (loss) before
       income taxes                (11,587)    (1,753)    (7,922)     4,554
  Income tax provision (benefit)      (529)      (101)       887         13
                                 ---------  ---------  ---------  ---------
      Net income (loss)          $ (11,058) $  (1,652) $  (8,809) $   4,541
                                 =========  =========  =========  =========


  Basic and diluted net income
   (loss) per share              $   (0.05) $   (0.01) $   (0.04) $    0.02

  Weighted average common and common
   equivalent shares:
        Basic                      235,429    226,496    232,599    220,888
        Diluted                    235,429    226,496    232,599    229,738

----------------------------------------------------------------------------

  Included in the above Statements of
   Operations:

  Amortization of intangibles:
      Cost of revenue            $   1,435  $   2,575  $   7,583  $  14,662
      Research and development          --         --         --        200
      Sales and marketing            3,256      3,331     13,128     13,419
      General and administrative        --         25         32        100
                                 ---------  ---------  ---------  ---------
                                     4,691      5,931     20,743     28,381
  Share-based compensation:
      Cost of revenue                  685        405      2,203      1,768
      Research and development         784        553      3,250      2,486
      Sales and marketing              989        730      4,048      3,121
      General and administrative     1,033        683      4,236      3,046
                                 ---------  ---------  ---------  ---------
                                     3,491      2,371     13,737     10,421

  Senior debt amendment fees            --         --         --        861

  Acquisition expenses                  --         --        325         --
----------------------------------------------------------------------------

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

                                                    March 31,    March 31,
                                                       2012        2011*
                                                   -----------  -----------

                      Assets
Current assets:
  Cash and cash equivalents                        $    51,261  $    76,010
  Restricted cash                                        4,230        1,863
  Accounts receivable                                  110,840      114,969
  Manufacturing inventories                             61,111       48,131
  Service parts inventories                             39,050       45,036
  Deferred income taxes                                  5,295        6,271
  Other current assets                                   9,434       11,274
                                                   -----------  -----------
    Total current assets                               281,221      303,554

Long-term assets:
  Property and equipment                                25,440       24,980
  Intangible assets and goodwill                        81,725       91,481
  Other long-term assets                                 6,962       10,950
                                                   -----------  -----------
    Total long-term assets                             114,127      127,411

                                                   -----------  -----------
                                                   $   395,348  $   430,965
                                                   ===========  ===========

       Liabilities and Stockholders' Deficit
Current liabilities:
  Accounts payable                                 $    56,304  $    52,203
  Accrued warranty                                       7,586        7,034
  Deferred revenue, current                             93,441       87,488
  Current portion of long-term debt                         --        1,067
  Accrued restructuring charges                          1,752        4,028
  Accrued compensation                                  31,971       31,249
  Income taxes payable                                   1,133        1,172
  Other accrued liabilities                             17,866       21,418
                                                   -----------  -----------
    Total current liabilities                          210,053      205,659

Long-term liabilities:
  Deferred revenue, long-term                           36,430       34,281
  Deferred income taxes                                  4,564        6,820
  Long-term debt                                        49,495      103,267
  Convertible subordinated debt                        135,000      135,000
  Other long-term liabilities                            6,486        7,049
                                                   -----------  -----------
    Total long-term liabilities                        231,975      286,417

  Stockholders' deficit                                (46,680)     (61,111)

                                                   -----------  -----------
                                                   $   395,348  $   430,965
                                                   ===========  ===========

* Derived from the March 31, 2011 audited Consolidated
 Financial Statements.




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

                                                      Twelve Months Ended
                                                   ------------------------
                                                    March 31,    March 31,
                                                       2012         2011
                                                   -----------  -----------
Cash flows from operating activities:
  Net income (loss)                                $    (8,809) $     4,541
  Adjustments to reconcile net income (loss) to
   net cash provided by operating activities:
    Depreciation                                        11,774       11,657
    Amortization                                        23,101       30,304
    Service parts lower of cost or market
     adjustment                                         10,736       13,796
    Loss on debt extinguishment                          2,310        1,186
    Deferred income taxes                               (1,280)        (184)
    Share-based compensation                            13,737       10,421
    Other non-cash writeoffs                                --          302
    Changes in assets and liabilities, net of
     effect of acquisition:
      Accounts receivable                                4,134      (14,935)
      Manufacturing inventories                        (21,373)      (1,460)
      Service parts inventories                          3,642        1,955
      Accounts payable                                   4,107       (1,466)
      Accrued warranty                                     552        1,150
      Deferred revenue                                   8,073       (3,876)
      Accrued restructuring charges                     (2,284)         227
      Accrued compensation                                 810         (302)
      Income taxes payable                                  12       (1,454)
      Other assets and liabilities                      (3,582)         465
                                                   -----------  -----------
Net cash provided by operating activities               45,660       52,327

Cash flows from investing activities:
  Purchases of property and equipment                  (11,414)     (12,339)
  (Increase) decrease in restricted cash                (2,505)          32
  Return of principal from other investments                97        2,204
  Payment for business acquisition, net of cash
   acquired                                             (8,152)          --
                                                   -----------  -----------
Net cash used in investing activities                  (21,974)     (10,103)

Cash flows from financing activities:
  Borrowings of long-term debt, net                     48,535           --
  Repayments of long-term debt                        (104,334)    (203,449)
  Borrowings of convertible subordinated debt, net          --      130,022
  Repayments of convertible subordinated debt               --      (22,099)
  Payment of taxes due upon vesting of restricted
   stock                                                (2,944)      (2,307)
  Proceeds from issuance of common stock                10,390       16,547
                                                   -----------  -----------
Net cash used in financing activities                  (48,353)     (81,286)

Effect of exchange rate changes on cash and cash
 equivalents                                               (82)         125
                                                   -----------  -----------

  Net decrease in cash and cash equivalents            (24,749)     (38,937)
Cash and cash equivalents at beginning of period        76,010      114,947
                                                   -----------  -----------
Cash and cash equivalents at end of period         $    51,261  $    76,010
                                                   ===========  ===========

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

                                    Three Months Ended March 31, 2012
                             ----------------------------------------------
                                                       Per Share  Per 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

      Computation of basic
       and diluted net
       income (loss) per
       share:                                             GAAP     Non-GAAP
                                                       ---------  ---------
        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 Share  Per 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
   (benefit)                  (300)             1,630
  Loss on debt
   extinguishment               --              2,310
  Acquisition expenses          --                325
                          --------           --------
Non-GAAP                  $283,321     43.4% $ 29,936  $    0.13  $    0.12

    Computation of basic
     and diluted net
     income (loss) per
     share:                                               GAAP     Non-GAAP
                                                       ---------  ---------
      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
                                                       =========  =========


                                    Three Months Ended March 31, 2011
                             ----------------------------------------------
                                                       Per Share  Per Share
                                                          Net        Net
                                      Gross     Net      Income     Income
                              Gross  Margin   Income    (Loss),    (Loss),
                              Margin  Rate    (Loss)     Basic     Diluted
                             ------- ------  --------  ---------  ---------
GAAP                         $68,562   41.5% $ (1,652) $   (0.01) $   (0.01)
Non-GAAP Reconciling Items:
  Amortization of
   intangibles                 2,575            5,931
  Share-based compensation       405            2,371
  Restructuring charges          602            3,633
                             -------         --------
Non-GAAP                     $72,144   43.7% $ 10,283  $    0.04  $    0.04

    Computation of basic and
     diluted net income
     (loss) per share:                                    GAAP     Non-GAAP
                                                       ---------  ---------
      Net income (loss)                                $  (1,652) $  10,283
        Interest on dilutive
         convertible notes                                    --      1,166
                                                       ---------  ---------
      Income (loss) for
       purposes of computing
       income (loss) per
       diluted share                                   $  (1,652) $  11,449
                                                       =========  =========

    Weighted average shares:
      Basic                                              226,496    226,496
        Dilutive shares from
         stock plans                                          --      9,469
        Dilutive shares from
         convertible notes                                    --     31,158
                                                       ---------  ---------
      Diluted                                            226,496    267,123
                                                       =========  =========

                                    Twelve Months Ended March 31, 2011
                              ----------------------------------------------
                                                         Per Share Per Share
                                        Gross               Net       Net
                                Gross   Margin     Net    Income,   Income,
                               Margin    Rate    Income    Basic    Diluted
                              -------- -------  -------- --------- ---------
GAAP                          $282,982    42.1% $  4,541 $    0.02 $    0.02

Non-GAAP Reconciling Items:
  Amortization of intangibles   14,662            28,381
  Share-based compensation       1,768            10,421
  Restructuring charges            602             3,644
  Loss on debt extinguishment       --             1,186
  Senior debt amendment fees        --               861
                              --------          --------
Non-GAAP                      $300,014    44.6% $ 49,034 $    0.22 $    0.21

    Computation of basic and
     diluted net income per
     share:                                                 GAAP    Non-GAAP
                                                         --------- ---------
      Net income                                         $   4,541 $  49,034
        Interest on dilutive
         convertible notes                                      --     1,761
                                                         --------- ---------
      Income for purposes of
       computing income per
       diluted share                                     $   4,541 $  50,795
                                                         ========= =========

    Weighted average shares:
      Basic                                                220,888   220,888
        Dilutive shares from
         stock plans                                         8,850     8,850
        Dilutive shares from
         convertible notes                                      --    11,610
                                                         --------- ---------
      Diluted                                              229,738   241,348
                                                         ========= =========

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 2013 FORECASTS
                       GAAP TO NON-GAAP RECONCILIATION
                            (Dollars in millions)


                            FULL YEAR FISCAL 2013

For fiscal 2013, we forecast GAAP and non-GAAP gross margin rates in the
 mid-40 percent range, with non-GAAP gross margin approximately 100 basis
 points higher than GAAP gross margin, comprised of 0.6% for intangible
 amortization and 0.4% for share-based compensation.


                                                           -----------------
                                                              Dollar range
                                                           -----------------
Forecast fiscal 2013 operating expense on a GAAP basis      $279.6  - $284.6

Forecast amortization of intangibles                              9.5
Forecast share-based compensation                                 15.1

                                                           -----------------
Forecast fiscal 2013 operating expense on a non-GAAP basis  $255.0  - $260.0
                                                           =================


                          FIRST QUARTER FISCAL 2013

                                                           -----------------
                                                               Percentage
                                                           -----------------
Forecast first quarter fiscal 2013 gross margin rate on a
 GAAP basis                                                      40.7%

Forecast amortization of intangibles                              0.9%
Forecast share-based compensation                                 0.4%

                                                           -----------------
Forecast first quarter fiscal 2013 gross margin rate on a
 non-GAAP basis                                                  42.0%
                                                           =================


                                                           -----------------
                                                              Dollar range
                                                           -----------------
Forecast operating expense on a GAAP basis                   $69.6  - $71.6

Forecast amortization of intangibles                              3.3
Forecast share-based compensation                                 3.3

                                                           -----------------
Forecast operating expense on a non-GAAP basis               $63.0  - $65.0
                                                           =================


Estimates based on current (May 9, 2012) 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, 2011. 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.