Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)

Quantum Corp. (NYSE:QTM)

F2Q08 (Qtr End 9/30/07)Earnings Call

October 24, 20075:00 pm ET

Executives

Shawn Hall - General Counsel

Rick Belluzzo - Executive Chairman and CEO

Jon Gacek - CFO

Bill Britts - EVP, Sale,Marketing and Service.

Analysts

Mark Moskowitz - J.P. Morgan

Brian Freed - Morgan Keegan

Glen Hanus - Needham& Company

J.D. Padgett - Boston Company

Operator

Good afternoon, ladies and gentlemen. Thank you so much forstanding by and welcome to the Quantum Corporation Second Quarter Fiscal 2008Conference Call. During today's presentation, all parties will be in alisten-only mode. Following the presentation, the conference will be opened forquestions. (Operator Instructions). As a reminder this conference is being recordedtoday Wednesday, the 24th of October, 2007.

I would like to turn the conference over to Mr. Shawn Hall,General Counsel. Please go ahead.

Shawn Hall

Thank you. Good afternoon and welcome. Here with me todayare Rick Belluzzo our CEO, Jon Gacek our CFO and Bill Britts, our ExecutiveVice President for Sale, Marketingand Service.

The webcast of this call, our earnings release and aquantitative reconciliation of any GAAP and non-GAAP financial measuresdiscussed today can be accessed at the Investor Relations section of ourwebsite at www.quantum.com and will be archived for one year.

During the course of today's discussion, we will makeforward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995.

The forward-looking statements include our businessprospects, priorities and opportunities, our target business model, andanticipated future revenue, gross margin, operating expense, and incomeperformance, trends in our business and the markets in which we compete, andtrends impacting our media royalties and the expected timing and features ofnew product launches.

We'd like to caution you that our statements are based oncurrent expectations and involved risks and uncertainties that could causeactual results to differ materially. We refer you to the risk factors andcautionary language contained in today's press release announcing our fiscalQ2, 2008 results, as well as to our reports filed with the Securities andExchange Commission from time to time, including our most recent 10-K filed onJune 13, 2007, and 10-Q filed on August 9, 2007.

Such reports contain and identify important factors thatcould cause actual results to differ materially from those contained in ourforward-looking statements. All such risk factors identified in our please andin our filings with the SEC are incorporated by reference in today'sdiscussion. We undertake no obligation to update these forward-lookingstatements in the future.

And with that I'll turn the call over to Rick Belluzzo.

Rick Belluzzo

Thank you, Shawn. Good afternoon and thank you for joiningus for the Quantum Q2 earnings call. This fiscal year is a critical year fortransitioning Quantum into a higher-value storage company with a solid businessmodel and a revenue composition that yields improved longer-term opportunityfor growth and margin improvement.

This transition has been greatly facilitated as a result ofthe combination with ADIC, which we completed just over one year ago. To thisend, we had outlined a couple of critical goals for this year, includingchanges in our revenue mix and continued work in improving our operate modelthrough gross margin and OpEx improvements.

On the revenue side, we are focused on growing our brandedbusiness and the higher margin revenue it represents, while allowinglower-margin revenue to decline. At the same time, we are aggressively seekingto build a strong revenue position in our growing disk systems and softwarebusiness.

On the operating model front, we established a goal to reachnon-GAAP operating income of 10% and then exceed this level as we exited fiscal'08. Achievement of these goals will position Quantum well in terms ofdelivering consistent profitability and cash flow and playing a significantrole in the growth segments of the storage industry.

This has been an ambitious plan requiring the Quantum teamto continue to drive significant change.

The Q2 results we are announcing today again demonstratesolid progress towards achieving these goals. Since the merger, we have beenfocused on making incremental improvement each and every quarter and our Q2results are no exception. Let me provide some detail. At $248.5 million, ourrevenue was up only slightly on a sequential basis, but within this our brandedrevenue grew 9% or $11 million, bringing our branded revenue, excludingroyalties, to a historic high of 63%.

We are investing to ensure that our sales and servicecapability can achieve stronger revenue performance, especially as we driverevenue in the emerging disk systems and software segment. We expect the trendtowards a higher branded revenue mix to continue in coming quarters.

Furthermore, in Q2 our disk systems and software businessexperienced sequential growth of just over 60% to $14.8 million. This waslargely the result of increased momentum in our disk systems product line.Growing our disk systems and software business has been and will remain a majorpriority for the company.

We also made excellent progress in our business model. Q2non-GAAP operating income came in at 8%, the highest in at least five years.This represents a significant improvement over Q1's 5% level and our guidanceof 6%.

The improvement in operating income was driven by continuedsolid gross margins and a significant reduction in operating expenses. Non-GAAPoperating expenses declined over $7 million from last quarter and reflect thecontinued synergy impact from the ADIC merger and more importantly the strategyand investment shifts that we have been implementing over the last threequarters.

The net impact of these results demonstrates solid progressin shifting the revenue stream to a stronger branded revenue mix, along withthe increasing revenue contributions from the disk systems and softwarebusiness, which we have established as the primary growth platform for thecompany. After John provides more details on our Q2 results, I will providemore color on the progress in building this business.

While the revenue mix shift and small overall improvementwas welcome, we still feel that we are not capturing all of the revenueopportunities available to the company. This represents our primarydisappointment in terms of overall performance. However, note that we havesolid momentum in our operating model. We will now focus heavily on closingthis revenue gap. We feel that the addition of new products, continuedenhancements to our existing offerings, incremental hiring in sales and changesin our marketing structure will help us do so.

Our new products include StorageCare Vision, a new solutionintroduced in Q2 that automates the management of the customer's entire dataprotection environment, including disk and tape systems, backup applications,and San switches through a single pane of glass.

We also recently introduced the Q-EKM, an encryption keymanagement solutions for our Scalar libraries. These management and securityproducts reflect our efforts to provide higher value, integrated solutions tomeet customers evolving backup recovery and archive needs.

In addition, in September, we began shipping the scale of50, which strengthens our competitive position in the entry-level tapeautomation market. I would also add that our DXi series of disk-based systemswith de-duplication, positions us to be a leader in one of the fastest-growingsegments in the storage industry.

The de-duplication or capacity optimized storage market isexpected to grow more than 100% this year. While we have only been in themarket for two full quarters, we are seeing tremendous opportunity and weexpect this to be a significant part of our revenue stream.

Our focus on this business segment can be seen acrossvirtually the entire company, as we drive product enhancements, sales andmarketing expertise and increased market awareness of Quantum's leadership inthis emerging category.

In summary, it was a good quarter for Quantum. We are makingsolid progress in delivering on our FY ‘08 goals. To this end, the primaryongoing focus of the company will be to improved revenue performance, mostspecifically in branded products and the disk systems and software category.

With that let me turn the call over to John and then I willreturn to provide more detail on our disk systems and software business.

Jon Gacek

Thanks, Rick. I'm going to provide additional detail onindividual income statement line items, as well as on significant balance sheetchanges for the quarter, but before I do, I want to emphasize several keybusiness points from Q2.

First: is our debt and refinancing. During the quarter, wesuccessfully refinanced our ADIC acquisition debt with a $400 million term loanand a $50 million undrawn revolver. Our new debt has a seven-year term and aninterest rate of LIBOR plus 3.5. During the quarter, we paid down $20 millionof the new term loan, leaving a balance of $380 million as of September 30.

You will also note that during the quarter, we incurred$12.6 million of refinancing expenses from retiring our prior debt facility, ofwhich $8.1 million related to writing off the prior debt's capitalized fees and$4.5 million was related to prepayment penalty we incurred in doing so. Theseamounts are secluded from our non-GAAP results.

Next: is branded revenue. At the last quarter call, we saidwe expected branded business to grow in total and in all geographies. In fact,the U.S. and Europeboth were up and Asia was flat. Branded product was 63%of our total non-royalty revenue, up from 58% in Q1 and totaled $140 millionversus $129 million in Q1. Sequentially, this is a 9% increase.

Growing the branded mix is key to our strategy and toimproving our profitability. We expect to continue to invest in sales, oursales team, presales engineers, and service infrastructure to support thisobjective.

The third key point I want to emphasize is: growth in ourdisk systems and software revenue. As Rick mentioned, our product revenue inthis category was $14.8 million, up approximately 62% sequentially.

This space is growing very quickly and we continue to gaintraction, including the emerging de-duplication market. One item of note, inaddition to the disk system and software product’s revenue of $14.8 million, wealso had $1.1 million in related service revenue, which is included in ourtotal service revenue.

Because of our scale and the significance of our servicerevenue, SEC rules require us to break out service separately, but to compareus to the smaller scale pure play companies you need to add the $1.1 million tothe $14.8 for total revenue of $15.9 in this important and fast-growing productarea.

The final key point is: our non-GAAP operating income forthe quarter, which was 8% on non-GAAP OpEx of $67.1 million. Our guidance thisquarter was to achieve 6% operating income. We clearly exceeded that goal. Wemade many changes in our expense and operating model over the past year and arebeginning to see the benefits we have been discussing.

By improving the model, we have the flexibility to spendmore money in areas of strategic focus. Number one: growing our branded revenueand number two: growing our disk systems and software revenue.

Now I'll move to second quarter results and go through theincome statement line items and the non-GAAP amounts. Starting with revenue,total revenue for the quarter was $248.5 million. Royalty revenue was $24.5, productrevenue was $185 million, and service revenue totaled $39 million for thequarter.

DLT royalties were flat sequentially and LTO royaltiesincreased slightly as LTO-4 shipments began to ramp. As a reminder, when welook forward we expect the LTO royalty will increase as the installed basegrows and the DLT royalty will decrease overtime.

For the September quarter, non-royalty revenue was $224million, of which 63% was branded, 37% OEM. For the prior quarter, non-royaltyrevenue was $221.7 million, of which 58% was branded, 42% OEM. Rick mentionedpreviously that is ahead of our target and ahead of anything the company hasdone in its past.

Now let me move to the three product revenue groupings. Disksystems and software, which we began disclosing this last category as acombined category to allow you to turn our progress. Tape automation systemsand devices and media. Disk and software category includes our de-duplicationDXi products, our enterprise VTL products, PVX and DX, our StorNext software license,maintenance, and related disk revenue as well.

Product revenue in this category was 14.8 for the quarter.This is a significant increase over the 9.1 in Q1, reflecting growth in ourmidrange disk products, including the new DXi 3500 and 5500 and some strengthin our enterprise VTL products. Our software revenue increased approximately12% sequentially as well.

We plan to expand our DXi product family in fiscal '08 byadding our DXi 7500 enterprise product. Tape automation systems revenue was$110.6 million in Q2 compared to $108.4 million for the prior quarter, upslightly. Branded revenue increased some and was offset by a small decline inour OEM automation.

Final group is devices and media. Q2 revenue for this groupwas $59.5 million compared to $64.1 million for the prior quarter, a decline of$4.6 million. Branded devices and media were up $2.7 million, while OEM devicesand media revenue was down $7.3. We will expect to see additional declines inOEM devices, as products roll off and we focus on more profitable revenuesegments.

As I mentioned earlier, services now a separate line item inour P&L. It includes hardware service contracts, repair, installation, andprofessional services. Service revenue totaled $39 million for the secondquarter compared to $40.1 in Q1. The decrease was primarily due to the declineof out of warranty repair on our legacy devices.

Now I'll move to cost of revenue and gross margin, which forthe second quarter of fiscal '08 were as follows. This is on a GAAP basis. Costof revenue was $170.2 million. Gross margin dollars generated were $78.3million, and the gross margin percentage was $31.5 million. For the Q1 grossmargin percentage was $31.8. So, on a GAAP basis, we were basically flat withQ1. On a non-GAAP basis, second quarter cost of revenue was $161.5 million.

Q2 gross margin was $87 million, or 35% compared to non-GAAPgross margin in Q1 of $87.3 million or 35.5%. The slight margin decline onessentially flat revenue, but with improved mix in Q2 is the net result ofrecognizing some costs and some cost savings for several clean up items fromour manufacturing and operational changes, as well as the IT system integrationwe just completed.

We believe that, we will continue to see improvement inmargin as our branded revenue grows as a percentage of total revenue, asservice revenue increases, and as our disk systems and software business grows.

The non-GAAP reconciling items are included in the detailedsheet on our website and in the press release. They include stock compensation,amortization of acquisition intangibles and the debt refinancing. I'm not goingto go through each of those here individually.

Moving to operating expenses, I'm going to walk throughthese on a GAAP basis. Research and development expenses for the quarter were$22.5 million compared to $26.4. This decline is the result of decreasing ourinvestment in the development of tape drives and restructuring our R&Dsupport services model, significant sequential decline.

Sales and marketing expenses were $34.3 million compared to$35.4 million in Q1. This decline is the result of lower spending on marketing,offset by increased labor costs due to increasing sales headcount.

For G&A, expenses were $18 million for the quartercompared to $21.5 million for the prior quarter. The decline here was theresult of one-time accelerated depreciation on our IT infrastructure lastquarter, as well as we're starting to see the benefit of declining facilitiescosts. Restructuring costs were $200,000 for the quarter compared to $9.1million in Q1. Total GAAP operating expenses were $75 million in Q2 compared to$92.3 in Q1.

A few more numbers for you on the non-GAAP items: amortizationof intangibles included in operating expenses totaled $4.5 million for Q2 andQ1. Stock-based compensation included in OpEx for Q2 in Q1 was $3.1 million and$2.5 million, respectively. So, excluding restructuring and transition expensesand amortization of stock comp, non-GAAP operating expenses totaled $67.1million in Q2 compared to $74.1 in Q1.

For the second quarter, we reported GAAP operating income of$3.3 million compared to an operating loss of $14.3 million for Q1. Adjustingfor the previously-mentioned non-GAAP reconciling items, we generated non-GAAPoperating income of $19.9 million or 8% of revenue for our fiscal Q2. Thiscompares to $13.2 million of operating income in Q1 or 5.4% of revenue. Onemore measure, EBITDA for the quarter was around, in other words 30.0 million,so that will be 30.0 million compared to 27.4 million in the prior quarter.

Moving on to non-operating items, interest income and otherwas $1.5 million and interest expense was $24.2 million for a net interest andother expense of $19.4. As previously mentioned, included in interest expense was-- there was $12.6 million of refinancing costs related to our recentrefinancing.

Our weighted average interest rate for the quarter was 7.72%compared to 8.72 %in Q1. Our quarterly income tax expense was $1.1 millioncompared to a benefit of $1 million in Q1. The Q1 benefit was primarily theresult of closure of a foreign tax audit and the release of a relatedcontingency of $2 million, which offset our normal quarterly cost of $1 millionfor foreign and state income taxes.

Our tax rate will continue to fluctuate quarter-over-quarter,as we integrate the legal and tax structures. I actually think this is thefirst quarter where we’ve actually hit the million that we've estimated. So,maybe, we will be standardizing here so $1 million a quarter, for those of youwho are doing models.

Moving on to the balance sheet, as of September 30, cash andcash equivalents and marketable securities totaled $83.6 million. We used $3million of cash to fund operations during the quarter compared to cash used inoperations of approximately $21 million in Q1.

Accounts receivable was $198.9 million, an increase ofapproximately $23.7 million from the prior quarter. DSOs were 71 days comparedto 60 days last quarter. The cash collection cycle continues to be an area wherewe have a lot of room for improvement and candidly, we need to improve ourperformance here. We are working on multiple fronts to generate more velocityin this area and to pull more cash in from the balance sheet.

I want to go back to the P&L on one item; I missed animportant paragraph I wanted to pass along. When you get to the bottom line,for the second quarter, we had a GAAP net loss of $0.10 per share and anon-GAAP profit of $0.04 per diluted share, a $0.14 impact for the combinedintangible amortization stock comp and refinancing expenses. This is comparedto Q1's GAAP loss of $0.11 per share and non-GAAP profit of $0.03 per share. So,sorry I skipped over that.

Moving back to the balance sheet, inventory was $69 million,representing a decrease of $7.3 million from the prior quarter. We continue tomake good improvements in this area and we still think we have some room tofurther lower that number.

Since the start of the fiscal year, raw materials and workin process have declined $26 million and finished goods were up slightly by $3million. Fixed asset purchases for the quarter amounted to $9.1 million anddepreciation expense was $5.6. The bulk of the additions are related to ourOracle consolidation project and we had some engineering test equipment aswell.

Moving on to liabilities, accounts payable were $84.5million at September 30, an increase of $7.4 million over the prior quarter dueto timing of payments. Total deferred revenue was $90 million compared with$84.8 million in Q1. The increase was primarily due to the growth in servicecontracts associated with our larger installed base of branded automationproducts.

As a reminder, the vast majority of our deferred revenue isgenerated from Quantum branded products and is the result of selling anadditional service contract above and beyond the product's standard warranty,or selling ongoing software maintenance.

We expect that our deferred revenue will grow as our brandedbusiness continues to grow. Interestingly, this quarter it actually grew morethan our branded business and that's just a function of how big our installedbase is and how our service contracts roll over.

Looking forward to Q3, we expect increases in brandedrevenue and disk systems and software revenue and expect total revenue in therange of $265 to $275 million. This is for Q3. We expect non-GAAP gross marginto increase slightly and non-GAAP operating income to be approximately 10% forthe third quarter.

For the year, we expect revenue in the range of $1 billionto $1.1 billion and non-GAAP operating income of 8% to 10%. This is an updateto our previous annual guidance of 10%. However, this is not a change inconfidence in our long-term business model, but reflects some caution on howquickly, we can execute on the necessary growth in the branded business toachieve the 10% non-GAAP operating income target for fiscal '08.

The fact is that in the first six months, we have met ournon-GAAP operating plan, despite lower than expected branded revenue by havinghigher gross margin and lower operating expenses. But to make the next step toget to 10%, branded revenue must grow.

Finally, with the $16 million of total disks systemssoftware and related service revenue in Q2, we believe, we can achieve a $30million run-rate for these products and services in fiscal Q4. Our launch of DXi7500will be a key element in achieving that goal.

With that, I'll turn it back over to Rick.

Rick Belluzzo

Thanks, John. As, I said earlier, we are pleased with theprogress of our disk systems and software business and I wanted to provide abit more detail on this progress. This business has several components.

First, the StorNext software offering, which is focused onproviding high performance, data sharing and intelligent archiving forheterogeneous environments. Next, the older virtual tape libraries for both ADICand Quantum and last, but certainly not least, the new DXi family, whichcombines de-duplication, replication, a high performance file system and otherintegrated software components in a disk-base platform that spans distributedsize mid-range environments and primary data centers.

During Q2, we saw growth in all three categories, but theprimary contributor to growth was the DXi series. And as I mentioned, we havenow been in the market with this product line for two full quarters. And in Q2,we achieved solid progress in a number of fronts.

We now have exceeded a customer base of over 120 customersacross multiple industries and geographies. In the development phase of thismarket, the key priority is to win new customers with typically a smallerinstallation of one or two systems. The goal is to then add customers at anincreasing rate and then drive repeat purchases as they experienced a strongvalue proposition and gain confidence in the technology.

In Q2, the repeat purchases started to gain significance. Infact, about a third of our revenue was represented by repeat purchases. Theaverage deal size also more than doubled as we made progress, especially in ourinstalled base obtained customers. This larger account allows us to build onour strong reputation and implement larger solutions earlier in the process.

Leveraging our install base of over 60,000 branded tapeautomation systems and 3,600 other disk systems and software deployments willcontinue to be a focus moving forward. We also will continue to capitalize onthe many customers that we find looking for combined disk and tape solutions. Diskpositions Quantum well as we continue to deliver solid technical and businesssolutions that allow disk systems and tape to integrate well in customerenvironments.

Yet another side of our DXi momentum is the fact that anumber of large accounts have standardized in our solution. These include afortune 500 beverage company, a U.S.government security agency, a major international telecommunications provider,a regional healthcare benefits provider in the U.S.and one of the leading international broadcast companies to name just a few.

The overall revenue base with these accounts is stillrelatively small, but we expect this to grow and become an increasing portionof our future revenue stream as these customers deploy DXi units across theirdistributed environments.

We are also in the final stages of delivering our DXi7500,which provides unmatched performance and functionality for enterpriseenvironments. Once this solution begins shipping, we will be the only companythat can deliver an integrated solution from remote sites to mid-sized datacenters and to primary data center environments. We are actively marketing thissolution and already have a series of wins in hand.

Finally, we can't minimize the importance of our StorNextsoftware, which is also the core clustered file system for our DXi-series. Wecontinue to expand StorNext market presence in Q2 and with particularly stronggrowth in EMEA and APAC.

This was the first full quarters of shipments withdistributed LAN client capability, which extends high performance and resilientdata sharing beyond fiber channel SAN environments to clients connecting via NASbased networks. This let to a range of new customer wins including a major U.S.government agency, a large oil and gas company in China,and two leading defense and technology companies.

Also during this period, Quantum worked with HP, to extendHP sales and StorNext beyond the media and entertainment industry to federalgovernment and high performance computer environments. All of this willcontribute to more than a 100, will contribute to the more than 100 petabytesof data already managed by StorNext around the world.

As I mentioned earlier, the DXi product line and our overalldisk systems and software business is the growth focus for the company. To thisend, we have made significant decisions to prioritize this part of thebusiness.

Furthermore, the disk systems and software business is verysynergistic with our mission to grow our branded tape business and that itrelies on the same infrastructure, channel model, and customer base. As aresult, this represents a significant advantage for Quantum.

In closing, we feel that our Q2 results continue todemonstrate the progress on the critical priorities of the company. Changingthe revenue composition into higher growth and higher margin business andachieving the business model that entails double-digit non-GAAP operatingincome margins. We still have a lot of work ahead of us, but our ongoingpriorities are to continue the development of our disk systems and softwarebusiness and grow our branded revenue base. Progress in these areas is centralto achieving our overall goals.

Thank you for joining us. Let me turn the call now back overto the operator for questions.

Question-and-AnswerSession

Operator

(Operator Instructions). Our first question coming from MarkMoskowitz with J.P.Morgan. Please go ahead.

Mark Moskowitz - J.P.Morgan

Yes. Thank you. Good afternoon, Rick and John. A fewquestions here first on the overall top-line. You've characterized yourdisappointment with the top-line in terms of maybe not capturing all theopportunities. Rick: can you maybe just put a little more context around howmuch of this is? Because you're still filling in some holes, or adding newproducts to your portfolio, and customers are waiting, versus needing to put morefeet on the ground, as far as sales force.

Rick Belluzzo

Sure. I'll let Bill Britts, who ishere, who will give the details, provides you more of a summary on that. Ithink it's a complex set of activities that we have been pursuing. We have beenworking to build our sales force, as you mentioned. We've been working,completing now the integration process has certainly had a set of issuesassociated with it.

Having said all of that, I really feel like over the lastquarter, we have addressed some of the gaps that we had. And not all of them,but I think we've addressed the gaps, we've restructured and refocused ourmarketing teams and we’ve made really good progress on adding headcount. Ourproduct line is really probably the strongest now than it's been since we'vebeen a combined company, across the board between tape, as well as thedisk-based products. We're heading into a seasonally better period.

So, our minds are really driven around, we've made a lot ofprogress, we've closed some gaps, we still have more work to do, but we'rereally driving the revenue piece, because the rest of the business is cometogether quite well.

Bill Britts

So, let me just amplify on what Rick said. First of all,we're largely through the integration phase in terms of the sales and marketingintegration with the acquisition of ADIC. We're really talking at this point ofexpanding our investments and sales, marketing and services.

If you kind of take the customer base the side of servicealong with our sales and marketing, we have over 900 people in thatorganization. Roughly a third of that organization is in the sales that's fieldsales, inside sales, channel sales, presale system engineering and technicalsales.

We have made significant investments in that area. We havesomewhere in the order of a 30% increase in the number of sales positions thatwere built into our fiscal year plan. So, we're about halfway through the year.We've made significant progress on that hiring. We anticipate that we'llcontinue to see productivity gains from those new hires that we've added overthe last several quarters.

From product portfolio standpoint, we have, as Rick said, wehave a significant opportunity with our DXi products, but also the ability tosell solutions that include both disk and tape and using some of our recentlyintroduced management tools, like StorageCare Vision in order to really pulltogether a complete solution. This really differentiates us from thecompetition that's more single point product focus.

So, we see just kind of in summary, we see a bigopportunity. We need to continue to drive against the investments that we'remaking to take advantage of this opportunity and it's really on the basis ofthat position that we feel confident that those investments will pay off.

Rick Belluzzo

I would also add another thing that what it was is not anissue today, and that is we feel that the market is fine. I know there's a lotof nervousness about the economy, but we feel like the market is fine. Thede-duplication opportunity and the DXi opportunity are very significant. And,even on the tape side, we think it's fine. There are certainly challenges,sometimes with sales cycles and some of the complexity issues, but I think thebusiness is out there. So, I would not tell you that we think there's somemarket weakness. We view this as our opportunity, we have the ingredients tomake it happen, we have to execute and we're pretty focused on that goingforward.

Mark Moskowitz - J.P.Morgan

Okay. Just then you mentioned the macro, so you're saying:there has been no change to customer tone or any sort of elongation of thesales cycle?

Rick Belluzzo

I would say, let me be clear, in terms of the overallmarket, both for tape and -- it says we'd characterize it over the last severalquarters. In terms of the sales cycle, there is an element of as people reallystart to try to understand what they're going to do with this new de-duplicationand replication technology for disk-based backup, customers are looking attheir architectures. As we mentioned in the release or in the earlier comments,we have a number of very large customers that are in the process or have madestandardization decisions around what they're doing with disk-based backups. Insome cases, they started that deployments in other cases those deployments willbe starting soon.

But, it really is because of the economics and the fact thatyou've got the ability to combine WAN optimized reapplication with disk-basedbackup, people are really looking at the backup architectures, how they solvethis problem, which has elongated sales cycles that we've been involved withduring this uptake phase of de-duplication.

Mark Moskowitz - J.P.Morgan

Okay. And, while we're talking about data, can you eitherBill or Rick, can you maybe help us understand, obviously it's more earlystages for Quantum versus say Data Domain, but, not trying to compare your newcustomer reference points versus theirs. I think you guys have a little moreleeway, just given you are newer to the party, but it does seem like thedirectional indications within Quantum are pointing in the right direction.

You've got DXi7500 coming out here later where are you interms of having enough gas in the tank to go after the competition? And then Iguess the second part would be, of these new wins: are these head to headcompetitions versus some of the entrenched players? Or: can you give us alittle more color behind that as well?

Rick Belluzzo

So you've got a lot of questions going on there, but let me seeif I can characterize it. Number one is, we actually see accelerated adoptionof our DXi technology and it really boils down to several key point, one is thebreadth of our portfolio and I am talking about our focus, our specializationon backup recovery and archive and the ability to sell not just a pointproduct, but again, this idea of tape will continue to have an important rollin backup architectures. There are very, very few people, very few end usersthat envision a totally tapeless type of backup. And in fact, what they'relooking at doing is changing the roll of that in order to improve the recoverycharacteristics. That's why disk-based backup has a very, very important rolein these next generation backup architectures.

We win in part, because we have this broader portfolio. Wewin also because we have the scale, we have the infrastructure, we have a verylarge installed base of customers that have come to trust us for backupsolutions and we have the service global scale in our service and supportorganizations to be able to support these larger customers that are looking atdeployments that go across different geographies.

The last point, and this is an important point inunderstanding why we're optimistic about our position, vis-à-vis the competitorsin this space is the fact that with the 7500, we really have a product roadmapfor disk-based backup that really nobody else has an equivalent kind ofhead-to-head type of comparison.

The reason for that is because we can scale from a remote officesingle node, less than a couple terabytes, all the way up into a very largescale data center enterprise type of disk-based backup solution that integratestape and allows you to scale across multiple nodes, there's really no directcompetitor that has that same software platform that will enable this. So that'swhy we're very optimistic, as we kind of look out over the long-term how thisall shapes up.

Mark Moskowitz - J.P.Morgan

Okay, great. And two more questions and then I'll cede thefloor. John, can you maybe, I guess, get follow up on your prepared remarks:can you clarify? Did you say that the disk offer piece would be $30 million inrevenues?

Rick Belluzzo

Yes. We've been talking since the beginning of the year thatour disk-based systems and software combined, that group, would be $30 millionin Q4, candidly, we did 9 last quarter and many of you are listening, asking mea lot of questions about are we going to get there. This quarter we did a justlittle bit south of 16, and so the gap now is from 16 to 30.

We look at our funnels, we look at our plan and we thinkthat 30 June is achievable in Q4. The point is that at 30, 625 to 30, a $100million business that's not even a year old in the products that are there,that's why we're excited about our position.

Mark Moskowitz - J.P.Morgan

Sure and I appreciate that. I guess the follow-on would be:as you try to get to that bogey, is that partly why you're introducing a littlemore caution on the gross -- on the operating margin targets? And: that you mayhave to spend a little more on sales and marketing, maybe a little more onR&D, to kind of get that trust behind you?

Rick Belluzzo

It's a little bit of a trade-off. Let me see if I canclarify my prepared remarks. I don’t think that we've done a really good job ofreducing our OpEx across the country. And this quarter, we're quite a bit belowlast, $7 million. We can't continue to cut costs and grow. So, while I feelgood about our ability to execute on cost cutting and I also feel good on ourability to spend money, that's also a joke. It's hard to know whether or notit's going to translate into branded revenue right away.

But, I think, the 10% is absolutely going to happen. I thinkit will happen this quarter for the discreet period and I think it will happenafter that as well, but we have to have this business move to the next level,the branded business absolutely has to grow and the disk and software piece isa key element of that. And we see it coming, it's just a matter of when does itcome and that's really what the caution comes from.

Mark Moskowitz - J.P.Morgan

Okay. And then just lastly, on the DSOs: did you say that'sprimarily driven because of cash collections? Or: was it because of linearityin the quarter?

Rick Belluzzo

No, it's good cash collections. The one place we'vestruggled internally with the IT conversion, in the last quarter we had problemgetting invoices out, this quarter we have I can't remember what the issue is, someother technically issuer that we're working. So, it's just a matter of gettingthe cash in the door.

From a linearity perspective this quarter was pretty normal;our OEM business is pretty spread out across the quarter. Our branded businesstends to be more backend loaded in the quarter this one was not unusual thatway. And it really is as matters of we just have to do a better job on thecollection side.

Mark Moskowitz - J.P.Morgan

Okay. Thank you, good afternoon.

Rick Belluzzo

Thanks for the questions.

Operator

Right. Thank you. Your next question is from the line ofBrian Freed with Morgan Keegan. Please go ahead.

Brian Freed - MorganKeegan

Hey, guys, great quarter! I was far impressed with your datade-duplication business. I was thinking, maybe, $12 million; $15 pretty muchblew me away. So, very good job there! Real quick on, I think, you've answeredmost of my questions, but when you look at your operating structure and yourguidance there, I think, to get to the 10% full year, it looks like you had toget to the mid-teens, maybe the high-teens in the fourth quarter to get thereand I can see how that would have been a pretty aggressive target.

Is your longer-term view on the potential operating marginsof the company diminished at all? Or: is it more a function of you think atthis point in the company's life you're better off to balance reasonableoperating margins with the growth opportunities that exist?

Jon Gacek

So, I'm going to answer that in two ways and I'll let Rick sortthe cap it off. We think that we've done the things to business model that willmake us a more profitable company. If you think back a year, the distance we'vecome is incredibly huge. And we have to transition the company to be, to think about and be agrowth company in certain aspects of the business. And to do that, we've got toinvest the money. We think the opportunity has never been better than either alegacy company, depending on what period you look at.

We have a great product portfolio, we have the rightroadmap, we have the good cost infrastructure. So, we're now teed up, we thinkwe can go on beyond that 10% and we know what it takes to drive that. So we'reactually, I would say, more excited about the upside and more excited about theprogress, it's just a matter of time for when we break through the 10%. As Imentioned, I think in my prepared remarks, I said approximately 10. I thinkit's very likely we'll be over 10 this quarter. We'll see how it plays out.It's a seasonally strong quarter, our cost structure is inline, but we've gotto demonstrate to ourselves and to you guys that we can do that and then fromthere we think we can move further.

Brian Freed - MorganKeegan

Okay.

Rick Belluzzo

Yes, I would add, I'm not sure we know how far we can drivethe margin of this business. It really is going to be dependent upon how webuild the revenue base of the new business. And that I think is a transition,we talk about transition a lot. That is a transition in our minds, becausewe're -- there are a lot of people that we've kind of gone through this verytough kind of market decline environment, we now find ourselves in the middleof the fastest growing segment of storage. And we're proud of the fact thatwe've been able to get there. But now, the model is going to be impacted bygrowing that business, because the margin on that business is so much betterthan the margin on other businesses that we've had.

And so, I think that still -- I think we're very positiveabout that, but we're pretty clear that trying to take another couple millionout of our cost structure, if it minimizes or reduces our ability to grow thisrevenue stream would not be the right thing to do. So, we've kind of made thatshift.

To Jon's point, in the last year, the changes that that wehave made both from an integration perspective and our changes in strategy havebeen profound and we've tried to follow all of that, not just slide ware, thoughwe've actually gone through program by program, department-by-department andworked to change everything in the company to take advantage of thatopportunity. That's why expenses went down $7 million. And there are justthings that we look at today and say given that the opportunity we have, we'vegot to drive that opportunity and as a result of that, we're leaving things outof the investment portfolio than in the past we might have taken on and that’s reallywhy the expense number declined as much as it did. And so we just think there'sa lot of positive trends that can help us improve that margin over time.

Brian Freed - MorganKeegan

Okay. And then on the non-royalty device and media segment,I mean: that segment's been in pretty rapid decline over the last few quarters.And frankly, given that its an affordable gross margin business, I am not thattoo concerned about it. But what's, kind of, your view in terms of where you'dlike your revenue mix to be? Or: are you more concerned about that top line orreally the gross margin number you get off to top line?

Rick Belluzzo

So, I say this in each quarter and I am going to say itagain, we don't have any revenue covenants. We are about making money, but thatdoesn't mean we're going to pursue incrementally profitable business. And,right now, the cycle is such that we're having products roll off and we're notgoing to reduce our margin on those products.

We have had a number of new opportunities and we've won afew new products in our existing OEMs and those are going to be betterbusinesses for us going forward. We also are going to be launching new devicesand we'll be judicious about how we do this. So I would like to see revenuegrow there. I just want it to be profitable revenue and the team understandsthat, we're working hard at it. I give you an example of our media business,you heard me talk about it, the media team did a great job this quarter.

They, I believe, increased both margin and revenue insomething that is very, very commoditized and it's really about attaching tothe right types of sales, going to the right kinds of channels, and we'restarting to do those things.

So, I think that it will plateau here and then it will startto build itself back up some, but it's really just about adding profitableincremental revenue, no target.

Brian Freed - MorganKeegan

And lastly, on the de-duplication segment, your disk andsoftware services, you're about half the size of Data Domain, who's kind ofviewed as the market leader. You're three quarters in; they are three yearsinto the market. Do you, ultimately, think you can catch up to still?

Jon Gacek

That would be a good goal. I think that’s where we, you knowwe're a $1 billion company, and as Bill I think talked about very well, we havea product roadmap that is unique. We have an infrastructure and scale that isunique to some of the competitors in the space, but this is a hot space. Thereis going to be other people joining it over time.

The big guys really don't have a play here yet and theylikely will. So, there're a lot, a lot of games to be played in this particulararena. I'm not sure in the long-term, I'm going to answer it slightly differentto what Bill and Rick said. I'm not sure in the long-term Data Domain is reallythe ultimate competition here. Some of the bigger companies will have played inhere.

Rick Belluzzo

I think it's still very early on. People have talked aboutthe fact that de-duplication will become a feature that all storage systems,primary, secondary, archiving, backup, will have. I think if you kind of lookedcarefully at the landscape, it mean certainly Data Domain did a very good jobof establishing the category for a disk-based, NAS interfaced kind of low tomid range type of system and they've done very well in kind of proving thecategory and building, I think a very good and solid installed base. But if youlook at the big scale of our installed base or the System OEM, or the EMCs netups, I think to Jon's point, this competition is far from over and it's goingto be important to figure out which parts of the market you're going to focuson and what you're going to leverage. We, basically, stated our strategy fromthe very beginning, it’s been focused on backup recovery and archive.

Already, I think in part, because of the way that they'veset up their product structure or product strategy, Data Domain has said thatthey're going to move into some adjacent markets that are not just necessarilyfor secondary storage and I think that, part of this competitive landscape thatwe see out there is that their going to be different competitors that are goingto be the strongest players in the different segment, its going to be veryimportant to have a coherent strategy that lines up the assets of what you havefor a channel, what you have for service to support, what you're reallybringing to the table in terms of your installed base and the competition willreally be based off of that.

Brian Freed - MorganKeegan

Okay. Great! And then one quick housekeeping item, on thegross margin: you said there were some clean up items and kind of tossed intothat. Can you give us some sense what the magnitude of those were? Because itlooks like from a product perspective, your brand versus OEM, you actuallyshould have had a slightly upward bias to your gross margin versus a slightdowntick, drove with the OpEx line, so just kind of wondered: what the clean upitems were in terms magnitude?

Jon Gacek

Yes. This is kind of off a top of my head. I can see there istwo items: one went one way, one went the other. The net of that was around$1.5 million type of range of expense, additional expense.

Brian Freed - MorganKeegan

All right.

Jon Gacek

So, [inaudible].

Brian Freed - MorganKeegan

Great! Well, good job and I am thrilled with the success youguys are having in de-dup! From my perspective, looking at your valuation, I'mnot sure: whether you're buying the tape business and getting an option on thede-dup business or paying fair value for the de dupe business and getting tapefor free? But, when I look at you guys and Data Domain, it sure seems like abig imbalance in valuation. Would you agree?

Jon Gacek

Well, I think we've to just, I think we've made a lot ofprogress. I think the $16 million will definitely makes us more credible inthat space and the $30 million doesn't look as far away and I think investors,we have to execute and I think ultimately investors will figure it out.

Bill Britts

You guys make that decision, we don't.

Jon Gacek

Right.

Brian Freed - MorganKeegan

All right.

Jon Gacek

Thanks, Brian.

Brian Freed - MorganKeegan

All right. Thanks again.

Operator

All right, thank you. Glen Hanus with Needham & Company.Please go ahead with your question.

Glen Hanus - Needham & Company

Good afternoon. Any update on Europe?I guess last quarter that was a little bit of an issue. And: how do you feellike you're executing in Europe?

Jon Gacek

Let me start and I'll let Bill continue: Europewas better. Even in a seasonally difficult quarter in Europe,third quarter is usually tough. Europe did improve. Wehave a new guy in there leading it. I think, he's not quite been in a quarter,but it's one of the places where we have the most open territories, I think. Doyou want to add to that?

Bill Britts

Yes. We characterize Europe, as anarea that we're investing and hiring has been more difficult. We have startedto make some progress on that front. We anticipate we'll continue to makeprogress on the hiring front and that will be a key part of how we drive theperformance there. We were up this last quarter and we anticipate that thebranded business in Europe will be up again.

Glen Hanus - Needham & Company

How do you guys feel about the de-duplication disk? Actuallyeating into your tape library opportunity?

Bill Britts

I think, it's important to understand that, first of all, wedon't control how the end user customers are viewing systems like tape or diskto a great extent. Disk-based backup has been a hot topic for several years.De-duplication has really made the economics, such that it really can become avital part of these backup architectures.

One other key aspect that is important to understand, withrespect to how people make decisions on tape is that at the edge, we see thatthe administrative costs, the management costs of getting the tapes off-site,all of those things really add additional cost, operating cost, to the model. Andthat's why we see tape really becoming less over the long-term, less effectiveat the edge.

At the core data center, you're talking about major, majorinitiatives. Whether you think of them as green initiatives or you think ofthem as how do I reduce my overall power and cooling footprint?

Tape plays a really, really critical role in the centralizeddata center in the consolidated storage area networking types of backup schemesand we see that as a critical part of our strategy of people will continue tobuy tape systems. That the role will be a little bit different, you'll still beusing tape, but you'll be using disk to manage your service levels forrecovery. And that's why over the long-term, tape will continue, especially inthe midrange and low-end of the enterprise with open system, nonproprietarytape formats.

Jon Gacek

Well, one of the things that drove us to reduce ourinvestment in tape drives was the point that Bill just made, is that the edge,tape was becoming less and less relevant and out at the edge, it's typically atape drive and a server or in a very, very small power supply, maybe an autoloader, but probably not. So that trend out on the edge, we've seen coming fora while and that was one of the key attributes that caused us to say we need toinvest less money there and focus more on the place where you havedifferentiation, which is in the automation and more enterprise-class tapeproducts.

Rick Belluzzo

But, I think it would be fair to say in the short-term, ifwe were only selling tape automation, we would probably sell more than we donow.

Jon Gacek

That's true.

Rick Belluzzo

Because we are adding complexity into the sales cycle, whenwe sit down with a customer, we think, of course, we replace some of that losttape with the DXi revenue, but we probably don't replace it all. But we'rebuilding a foundation for ongoing sales and growth potential. We feel like wehave to do that. We're trying to balance and optimize that well. I just thinkthere's, historically some of these large tape purchases in a quarter. A dealcould be very large that I think we are causing to be pushed at times. We thinkthat what tape is there we'll still get, but we are changing the configurationof that because we have new technology.

We just think strategically, that's absolutely the rightthing to do. It makes things a little more complex. But it ultimately is astrong hand that we can play, because we have the opportunity to be anobjective provider of both systems over time like in our 7500, we havetechnology that allows you to integrate better with tape.

So, it's all going in the right direction, but I'm sure thatwe've made our key prospects more difficult than pure tape players which don'thave a viable de-duplication solution. But we think that's something we'llbalance carefully in order to get the best overall results.

Glen Hanus - Needham & Company

And lastly, from a “feet on the street” standpoint andramped up expertise selling DXi, how do you -- where are you at? Is there a lotto go? Or: do you feel pretty good about where you are or can you give somesense of that?

Rick Belluzzo

I would say that -- I would characterize it as we've made alot of progress in the last several quarters. I think certainly we've had theconversations with customers, basically, ever since we brought the ADICacquisition in-house. We've had those discussions with customers about how theymight actually deploy these types of technologies. I think we've learned a lot-- we've learned a lot in part because data de-duplication is dependent on thisspecific data types it depend on your retention policies. There’s actuallyquite a bit of consultative work that can go into some of these larger scaletypes of deployments, and I think we've gotten a lot better that we still havea ways to go. The other part of it is we have hired quite a number of people togo back to fiscal of Q4 of last year.

We've added some more in the neighborhood of 50, 60 peopleto our sales organization broadly. We've add additional people in service andsupport. We've add a lot of expertise. The people that we're hiring into thosepositions typically have come from software or solutions background. So, we areabsolutely adding to our capability. I would say we've made a lot of progress,but there's still room for improvement from an execution standpoint.

Jon Gacek

So, I’d say, Glen, if you're thinking about expense, we'reprobably -- we're behind our plan from branded for the first six months, butwe're also behind our plan for sales and marketing expense.

Rick Belluzzo

Yes.

Jon Gacek

And, I think, Bill's team still has open wrecks that they'regoing to pursue to fill or extend our sales territories. I think we will spendsome more money there, but Bill used the execution point. We've hired a bunchof people, we expect them to get more productivity, and that's going to improvetoo. But, we will spend some more money here. We're just going to balance itbecause we've made a lot of progress on the spending side.

Glen Hanus - Needham & Company

Okay. Thank you.

Operator

(Operator Instructions). Our next question is coming fromthe line of J.D. Padgett with Boston Company. Please go ahead.

J.D. Padgett - BostonCompany

Yes. I had a couple quick ones. One was -- I think youaddressed this just with the slight negative revision on the full-year revenueguidance range. That was more, I guess, the branded effort that you're tryingto get back in full momentum right now?

Jon Gacek

It's across the branded spectrum, I guess, I would say. Andhow much it turns out to be, obviously, we moved the range down, as you pointedout, about $100,000. But its 100 - or I just lost my trail,

J.D. Padgett - BostonCompany

$100 million?

Jon Gacek

Yes, $100 million, I lost my zeros. If and that really hasto do with where we are on first half and how much we can grow up in of secondhalf. We still think we have upside there, but we don't want to build a modelaround unrealistic growth from here to there.

J.D. Padgett - BostonCompany

Sure. And what's the trick to getting that fixed? Is it justfilling the open wrecks and getting those people ramped up and productive andfilling the products?

Jon Gacek

I think Bill and I we covered to one is we need to havebetter utilization on what we've done, we need to hire and fill openterritories and we're going to -- we've made some changes in our product marketand marketing organization. We think that will help as well.

J.D. Padgett - BostonCompany

Is that globally or is that mostly internationally?

Jon Gacek

It's globally. Some of those will be more focused indifferent territories. Europe is a place we have to hiremore people. I would say, in the U.S.,we’re not hiring as much; we'll be hiring a few. Is that right?

Bill Britts

Yes.

J.D. Padgett - BostonCompany

Okay. And…

Bill Britts

I think the other part of this and this is just natural interms of kind of this type of product category and where we are in our cyclewith the product is, as we showed this kind of, we demonstrate this kind ofperformance with our disk-based backup solutions, we can get a lot moreleverage from channels and partners and to-date, we certainly focused on thechannel and trying to basically do business through them. But a lot of that hasbeen heavy lifting by our direct field and technical resources. We expect thatover the next several quarters we'll get leverage from the channel.

J.D. Padgett - BostonCompany

So, kind, of a halo effect on the de-dup stuff?

Bill Britts

And there is also the fact that because of the productroadmap that we have, because we're building that reference base and as weintroduce kind of additional products, it gives us a lot more channel power tobe able to get leveraged.

J.D. Padgett - BostonCompany

Okay. And the other question was, if I'm doing the mathright, even to get to $1 billion for the year, kind of, implies the Marchquarter is reasonably flat, sequentially, I think, and I know you'll probablyhave the de-dup stuff that will be up some, but: shouldn't that usually be aperiod where things are more challenged, seasonally?

Jon Gacek

We give a revenue range right for next quarter and pick your-- any number within that range, Q4 could be sequentially down and you'd stillbe over $1 billion.

J.D. Padgett - BostonCompany

Okay. I was doing the math wrong. I was thinking it neededto be like 260 or something to be at $1 billion, so that would be downslightly.

Jon Gacek

Yes, well, if you picked the low end of the range, then thatwould be the case. If you did it off of 265, even at 260, you would be over $1billion. So the $1 billion number is very, very low end.

J.D. Padgett - BostonCompany

Okay. Should we be thinking about the March quarter beingdown seasonally?

Jon Gacek

It's seasonally a tougher quarter, Q3 I'll say itdifferently. Q3 is by far in a way our best quarter. I'll put a positive spinon it.

J.D. Padgett - BostonCompany

Right.

Jon Gacek

Q4 is not as good. It's typically -- there's often thingslike product introduction cycles that make some of that stuff hard to see, butit would be unlikely that Q4 would be higher than Q3 in total revenue.

J.D. Padgett - BostonCompany

Okay. Thank you, guys.

Jon Gacek

Thank you.

Operator

All right. Thank you. Management, there are no furtherquestions at this time, please continue with any closing comments.

Shawn Hall

Well, thank you again for joining us for the call heretoday. We look forward to again discussion next quarter. And again, I wouldjust summarize, we feel good about the progress, we feel it's consistent, buthaving said that, I think you get the sense from this team that we're alsofacing into some of the continued challenges we have and we'll address those asaggressively as we have thus far on a go-forward basis. So we'll look forward toupdating you again in three months. Thanks.

Operator

All right. Thank you, ladies and gentlemen, this doesdiscuss conclude the Quantum Corporation second quarter fiscal 2008 conferencecall. At this time you may now disconnect. Thank you for using ACT conferencingand have a very pleasant rest of your day.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Quantum F2Q08 (Qtr End 9/30/07) Earnings Call Transcript
This Transcript
All Transcripts