Quantum's Scale-Out Storage Segment Driving Growth
Tue, May 10, 4:19 PM
Mon, May 9, 5:35 PM
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Mon, Apr. 18, 11:31 AM
- Fuad Ahmad, a partner at CFO consulting firm FLG Partners and before that a CFO at multiple tech companies, has been named Quantum's (QTM -0.5%) CFO, effective April 15. The hiring comes three months after Quantum announced Linda Breard had resigned as CFO to "pursue another opportunity."
- Also: Quantum says it expects to report FQ4 (calendar Q1) revenue of $120M and EPS of $0.02. Prior guidance was $118M-$122M and $0.00-$0.01; consensus was $121.5M and $0.01.
- The company adds its credit line with Wells Fargo has been extended to Aug. 10, 2017, and that it has secured "a major, multi-year scale-out storage win for a large cloud project that is expected to contribute significant revenue over the course of [FY17]." The win is expected to help Quantum deliver positive revenue growth in FY17 (ends March '17), as well as higher profits and cash flow. The FY17 revenue growth consensus is at 0.8%.
Mon, Feb. 1, 1:10 PM
- Crosssroads (CRDS -22.7%) is now down 67% from Thursday's close, following Friday's news (confirmed in a PR issued after the close) the USPTO ruled (via inter partes reviews) challenged claims in the company's '035 and '147 patents are unpatentable.
- Quantum (QTM -14%) is down 40% since posting an FQ3 miss, issuing soft FQ4 guidance, and disclosing CFO Linda Breard has resigned on Thursday afternoon.
- Crossroads' market cap now stands at $9M, less than the $11.8M cash balance it had as of Oct. 31. Quantum's market cap is down to $125M; the company had $35.6M in cash, $68.9M in long-term debt, and $69.1M in convertible subordinated debt as of Dec. 31.
Fri, Jan. 29, 11:53 AM
- Quantum (QTM -22.8%) has tumbled towards $0.50 after missing FQ3 estimates (moreso on revenue than EPS) and guiding for FQ4 revenue of $118M-$122M and EPS of $0.00-$0.01, below a consensus of $140.2M and $0.02.
- The storage hardware/software vendor also disclosed CFO Linda Breard has resigned to "pursue another opportunity." Financial planning/analysis VP Chris Willis will serve as interim CFO while Quantum searches for Breard's successor.
- CEO Jon Gacek tries to put a positive spin on the FQ3 numbers. "We are pleased with our overall results and the continued scale-out revenue growth this quarter, to a new record high, especially given the overall weakness in the broad storage market environment. In response to the market conditions, we also successfully implemented significant operational changes during the quarter that improved our profitability."
- Cost controls - GAAP operating expenses fell by $800K Y/Y to $54.7M - limited the size of Quantum's EPS miss. GAAP opex is expected to drop to $50M-$51M in FQ4; non-GAAP opex is expected to total $48M-$49M.
- On the earnings call (transcript), Gacek stated tape automation, backup, and data protection/devices/media revenue each fell Y/Y. He added Quantum continues to see "significant pricing pressure on tape media products and [continues] to make conscious decisions to not pursue unprofitable revenue opportunities" Scale-out storage revenue (up 31% to $8.5M) remains a strong point.
- Quantum's FQ3 results, earnings release
Thu, Jan. 28, 4:22 PM
- Quantum (NYSE:QTM): FQ3 EPS of $0.02 misses by $0.01.
- Revenue of $128.05M (-9.9% Y/Y) misses by $7.19M.
Wed, Jan. 27, 5:35 PM| Wed, Jan. 27, 5:35 PM | 9 Comments
Nov. 18, 2015, 1:42 PM| Nov. 18, 2015, 1:42 PM
Oct. 30, 2015, 1:13 PM
- While Quantum's (NYSE:QTM) FQ2 results officially missed consensus, it meshed with the guidance provided in the company's Oct. 6 warning. Meanwhile, the beaten-down storage hardware vendor guided for FQ3 revenue of $130M-$140M and EPS of $0.02-$0.03 vs.a consensus of $138.4M and $0.02.
- Top-line performance: Scale-out storage product/service revenue remained a strong point in FQ2, rising 17% Y/Y to $29.9M; growth was 33% after factoring a $4.1M backlog. Tape automation revenue fell 25% to $48.7M, disk system backup revenue fell 14% to $18.2M, and devices/media revenue fell 12% to $11.5M. Royalty revenue fell 19% to $8.7M.
- Gross margin (non-GAAP) fell to 39.9% from 46.3% a year ago. Operating expenses fell by $600K to $52.5M. FQ3 GM and opex guidance is respectively at 42%-43% and $48M-$50M.
- FQ2 results, PR
Oct. 29, 2015, 4:47 PM
- Quantum (NYSE:QTM): FQ2 EPS of -$0.03 misses by $0.01.
- Revenue of $117.03M (-13.4% Y/Y) misses by $4.74M.
Oct. 28, 2015, 5:35 PM
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Oct. 6, 2015, 11:51 AM
- Quantum (QTM -3%) has paid down $81M worth of convertible notes due Nov. 15. $66M of the debt was paid using a $75M revolving credit facility; the remaining debt and interest was paid via $16M in cash. The company had $56.4M in cash at the end of June, and $152M in debt.
- Quantum now expects FQ2 (calendar Q3) revenue of $116M-$118M, below prior guidance of $120M-$130M and a $125.2M consensus. At the same time, Quantum's quarter-ending revenue backlog was $8M-$9M, larger than the typical $1M.
- The company attributes the backlog to "strong end-of-quarter demand, particularly in scale-out storage, with an unusually high number of customers placing orders in the last three days of the quarter," and states "a shortage of parts available from Quantum's disk suppliers" affected its ability to ship the orders before quarter's end. FQ2 results arrive on Oct. 29.
- Separately, the NYSE has notified Qunatum it's in violation of the exchange's $1 minimum average closing price rule. The company has 6 months to regain complain. A reverse split is an option if it doesn't.
- Update: Lake Street Capital (Buy, $2 target) is defending Quantum. "We were disappointed by the Q2 (Sep) revenue shortfall, but believe the stock anticipated worse and may find support with the news ... In FY16 we expect a manageable decline in data protection offerings and substantial growth in scale-out products. The company has a market-leading installed base in tape and two state of the art scale-out products in StorNext and Lattus. Our BUY rating reflects our belief the company will return to meaningful earnings growth."
Sep. 28, 2015, 4:32 PM
- Bassam Tabbara, who joined Quantum (NYSE:QTM) through its 2014 acquisition of cloud storage/backup service provider Symform, has been appointed to the newly-created position of CTO.
- Tabbara will be responsible for "driving [Quantum's] long-term technology strategy as it builds on its leadership in scale-out storage, archive and data protection." Before working at Symform, he spent 12 years at Microsoft.
- Quantum is coming off a June quarter in which its sales fell 13% Y/Y, as declining tape system and media sales offset scale-out storage growth.
Sep. 21, 2015, 2:54 PM
- Quantum (QTM -9.7%) has fallen to its lowest levels since 2009. 1.89M shares have been traded thus far, nearly matching a 3-month daily average of 1.99M.
- The storage hardware/media vendor is now down 30% YTD, and 62% from a May peak of $2.22. Shares go for only 0.4x an FY17 (ends March '17) sales consensus of $557.2M.
- Quantum tumbled in July due to an FQ1 warning, and again due to soft FQ2 guidance.
Jul. 31, 2015, 2:46 PM
- Though officially missing consensus, Quantum's (NYSE:QTM) FQ1 revenue was roughly in-line with the guidance provided in its July 16 warning. However, the company also guided for FQ2 revenue of $120M-$130M, below a $141.2M consensus, and declined to provide FY16 (ends March '16) sales guidance.
- Scale-out storage hardware/service revenue rose 54% Y/Y in FQ1 to $27.8M; Quantum still expects 50% growth for the business in FY16. But branded tape automation hardware/service revenue fell 30% to $15.1M, OEM tape automation 39% to $9.5M, and devices/media 39% to $10.9M. Disk backup system/service revenue was nearly flat at $17.3M.
- Shares are $0.05 above a 52-week low of $1.02.
- FQ1 results, PR
Jul. 30, 2015, 4:41 PM
- Quantum (NYSE:QTM): FQ1 EPS of -$0.03 misses by $0.02.
- Revenue of $110.9M (-13.4% Y/Y) misses by $6.01M.
Quantum Corp. engages in manufacturing of computer storage device. It engages in scale-out storage, archive and data protection, providing solutions for capturing, sharing and preserving digital assets over the entire data lifecycle. The company provides solutions for storing and protecting... More
Industry: Data Storage Devices
Country: United States
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