Quantum Corp. has reported results for the fiscal fourth quarter and full year 2017 ending Friday 31 March 2017. Quantum is an expert in scale-out tiered storage, archive and data protection, providing intelligent solutions for capturing, sharing and preserving digital assets over the entire data lifecycle. Fiscal fourth quarter 2017 financial results(All comparisons are relative to the fiscal fourth quarter 2016 unless otherwise stated. Total revenue was $120.8 million, up from $120.0 million. Branded revenue was $103.5 million, a 7 per cent increase. Scale-out tiered storage revenue was $31.0 million, compared to $33.1 million, primarily reflecting fewer large deals than the same quarter a year earlier. Total data protection revenue grew 5 per cent to $79.7 million, consisting of $21.5 million in disk backup systems revenue (up 19 per cent), $40.2 million in tape automation revenue (down 10 per cent overall, with OEM revenue down 45 per cent and branded revenue flat) and $18.1 million in devices and media revenue (up 38 per cent). Royalty revenue was $10.1 million, compared to $11.0 million. GAAP operating income was $1.1 million, and non-GAAP operating income was $4.2 million, compared to a loss of $50.1 million and income of $8.2 million, respectively. (Fiscal fourth quarter 2016 results included a non-cash goodwill impairment charge of $55.6 million.) GAAP net loss was $1.9 million, or $0.06 per diluted share, compared to GAAP net loss of $52.9 million, and non-GAAP net income was $1.6 million, or $0.05 per diluted share, compared to non-GAAP net income of $6.2 million. Fiscal 2017 full year financial results(All comparisons are relative to the fiscal 2016 full year results unless otherwise stated.) Total revenue grew 6 per cent to $505.3 million, up from $476.0 million. Branded revenue grew 11 per cent to $432.1 million, up from $388.3 million. Scale-out tiered storage revenue grew 17 per cent to $148.4 million, up from $126.5 million. Total data protection revenue grew 3 per cent to $318.2 million, consisting of $84.6 million in disk backup systems revenue (up 16 per cent), $172.7 million in tape automation revenue (down 9 per cent overall, with OEM revenue down 27 per cent and branded revenue down 3 per cent) and $60.9 million in devices and media revenue (up 33 per cent). Royalty revenue was $38.8 million, compared to $41.2 million. GAAP operating income was $12.1 million, and non-GAAP operating income was $23.0 million, compared to a loss of $67.8 million and income of $3.9 million, respectively. GAAP net income was $3.6 million, or $0.11 per diluted share, and non-GAAP net income was $15.8 million, or $0.46 per diluted share, compared to a loss of $76.4 million and $3.3 million, respectively. Leveraging flash technology "Our solid fourth quarter results closed out a year of strong overall performance and execution" “Our solid fourth quarter results closed out a year of strong overall performance and execution,” said Jon Gacek, President and CEO of Quantum. “We generated year-over-year growth and significantly improved profitability in a year of ongoing industry disruption. One of the keys to this success was the fact that we grew scale-out tiered storage revenue for the ninth consecutive year, building on our leadership in traditional rich media markets and expanding our footprint in new verticals and use cases. In addition, despite continuing challenges in the data protection market, we turned around this part of our business in fiscal 2017, driving significant growth in disk backup systems and extending our position as the market leader in tape automation.” “From a product standpoint, we delivered innovative new solutions and features for scale-out tiered storage, disk backup and tape archive, including new ways to leverage flash technology and the cloud. Finally, we secured a large financing package that addresses our November 2017 convertible debt and provides a stable, more flexible capital structure over the next five years. All of this makes us well-positioned for further success in fiscal 2018 and beyond.” Updating strategic direction for 2018 “We are also excited about the addition of Adalio Sanchez and Marc Rothman to our board of directors and expect to add the final director in our reconstituted board this month. As soon as the new board is fully in place, we will go through a comprehensive strategic review—taking a detailed look at the market and its trends, our product and solution capabilities, our sales model, R&D roadmaps, expenses and areas of investment, and capital structure—and then make decisions on how to take Quantum to the next level and drive increased shareholder value.”“When that process is complete, we will provide guidance for fiscal 2018 and update our strategic direction for the year and beyond. In the meantime, our current expectation is that we will grow total revenue year-over-year in the fiscal first quarter, driven by growth in scale-out tiered storage revenue.”Other recent business highlights Building on its momentum in video surveillance, Quantum closed the highest number of surveillance deals in a quarter to date, which included its first surveillance sales wins in life sciences use cases. Four additional video management software (VMS) partners were also certified to support the company’s full range of scale-out storage tiers, bringing the total number of VMS partners certified for full tiering to 20 and covering 80 per cent of the market. Adding to Quantum’s industry accolades, Milestone Systems—one of the top VMS providers—named Quantum ‘Technology Partner of the Year’ for 2016 in the Americas and, for the second consecutive year, ‘Best Solution Partner’ in the Asia Pacific region. Quantum announced purpose-built 4K video reference architectures that leverage the company’s StorNext-powered, disk- and flash-based workflow storage systems to maximise 4K stream counts and optimise performance levels in accordance with users’ specific needs. Based on exhaustive testing with real-world metrics, the new reference architectures empower media facilities to make better-informed investments in 4K storage infrastructure. Quantum announced a strategic relationship with Veritone Inc., a provider of cognitive analytics Quantum announced a strategic relationship with Veritone Inc., a provider of cognitive analytics. Veritone aiWARE—a hybrid on-premise and cloud version of Veritone’s best-in-class, cloud-based artificial intelligence platform—will be offered as an integrated solution with StorNext. This combination will allow users to leverage the power of Veritone’s cognitive analytics—along with top cognitive engines in areas such as face detection, object recognition and transcription—to extract new value from their on-premise video and audio content without having to move it to the cloud.The company introduced StorNext 6, a major new release of the StorNext platform that provides a unique combination of performance and advanced data management It is designed to help users overcome the challenges of working with growing volumes of higher-resolution content and enable them to capitalise on the opportunities to re-monetise or re-purpose that content. Features include more efficient and cost-effective ways to meet project performance demands, share and access content across geographically distributed teams, and manage and protect archived content. Quantum’s board of directors approved a 1-for-8 reverse stock split of its common stock, which began trading on a split-adjusted basis on Wednesday, 19 April 2017. The company appointed Adalio Sanchez and Marc Rothman to its board of directors. Sanchez is a 35-year information technology industry veteran who spent most of his career at IBM Corp., including 16 years in senior executive and global general management roles. He is currently president of S Group Advisory LLC, a firm providing expertise and management consulting services. Rothman is the Executive Vice President and Chief Financial Officer at VeriFone Inc., responsible for leading the company’s finance, information technology, and real estate organisations, and has more than 30 years of global finance and merger and acquisition experience.
Quantum Corp. announces the appointments of Adalio Sanchez and Marc Rothman to Quantum’s board of directors. Sanchez is a 35-year information technology industry veteran who spent most of his career at IBM Corp., including 16 years in senior executive and global general management roles. He is currently president of S Group Advisory LLC, a firm providing expertise and management consulting services. Rothman is executive vice president and chief financial officer at VeriFone Inc., responsible for leading the company’s finance, information technology, and real estate organisations, and has more than 30 years of global finance and merger and acquisition experience. “Adalio and Marc bring a broad range of business and technology experience to Quantum’s board,” said Paul Auvil, Quantum’s chairman of the board. “Along with the other directors and Quantum management team, I look forward to drawing on their knowledge and expertise as the company strives to build on its positive market momentum over the past year in scale-out tiered storage and data protection and deliver increased shareholder value.” Adalio Sanchez previous experience Prior to assuming his current position at S Group Advisory in 2015, Sanchez served as senior vice president/officer at Lenovo Group Ltd. for a year. In that role, he led Lenovo’s $5 billion global division focused on enterprise server/storage, cloud and data centre technologies. From 1982 to 2014, Sanchez worked at IBM, rising to become general manager, modular systems, where he ran two divisions with total annual revenues of $6 billion. Other leadership positions he held at IBM included vice president of corporate strategy and various general manager roles, including general manager of UNIX Systems and chief operating officer of IBM’s personal computer (PC) business. Sanchez began his career as an engineer working on IBM’s second PC. Marc Rothman previous experience Prior to joining VeriFone in 2013, Rothman served as the chief financial officer of Motorola Mobility Inc., where he played a central role in Motorola Mobility’s spinoff from its former parent company, Motorola Inc., as well as its sale to Google in 2012. During his 12-year tenure at Motorola, he also served in a number of senior finance leadership positions across the company, including chief financial officer in several of its global business segments (public safety, networks and enterprise, and mobile devices) and senior vice president and corporate controller. He began his career at Deloitte & Touche, Audit Advisory Services. Sanchez and Rothman were appointed to Quantum’s board as part of an agreement the company reached with VIEX Capital Advisors in early March of this year to reconstitute the board with a majority of new, independent directors. They replaced current board members John Mutch and Jon Gacek (Gacek remains president and CEO of Quantum). “The director search process went well, resulting in a pool of highly qualified and capable candidates,” said Eric Singer, founder and managing member of VIEX. “I appreciate this constructive collaboration with Quantum and look forward to identifying a third new board member. We strongly support all members of the reconstituted board as they build on the company’s industry leadership and market opportunities to generate significant value for all Quantum shareholders.”
A broad range of organisations turned to Quantum for help managing their growing unstructured data archives Quantum Corporation today reported results for the fiscal third quarter 2017 ending 31st December 2016 (all comparisons are relative to the fiscal third quarter 2016 unless otherwise stated). Fiscal third quarter 2017 results Total revenue was $133.5 million, an increase of $5.4 million. For the first three quarters of fiscal 2017 (YTD), total revenue was up 8 per cent over the same period in fiscal 2016. Branded revenue grew to $115.2 million, up $11.5 million, or 11 per cent. Scale-out tiered storage revenue increased to $39.8 million, up $4.1 million and contributing to a 26 per cent YTD growth rate. Total data protection revenue grew 3 per cent to $83.1 million, consisting of $22.9 million in disk backup systems revenue (up 17 per cent), $44.8 million in tape automation revenue (down 13 per cent overall, with OEM revenue down 42 per cent and branded revenue down 3 per cent) and $15.4 million in devices and media revenue (up 51 per cent). Royalty revenue was $10.5 million, a decrease of $750,000. GAAP operating income was $7.3 million, and non-GAAP operating income was $8.8 million, an improvement of $5.8 million and $2.1 million, respectively. GAAP net income was $5.0 million, or $0.02 per diluted share, and non-GAAP net income was $6.6 million, or $0.02 per diluted share. This represented an improvement of $5.8 million and $1.8 million, respectively. Aims for the fourth quarter “Following up on our revenue growth and improved profitability in the first half of the fiscal year, we again delivered solid results in the December quarter,” said Jon Gacek, president and CEO of Quantum. “On a year-over-year basis, we generated our 22nd consecutive quarter of scale-out tiered storage revenue growth and increased total revenue, data protection sales and overall profitability for the third straight quarter. As a result of our strong execution and the leverage our financial model provides, year-to-date GAAP and non-GAAP net income also improved $29 million and $24 million, respectively, on a total revenue increase of $29 million. "In the fourth quarter, our focus is to continue providing customers with the opportunity to achieve their business or mission objectives" “In the fourth quarter, our focus is to continue building on our momentum by providing customers with the optimal combination of high performance, low-cost capacity and ready access to meet their increasing data management demands and achieve their business or mission objectives. We are well-positioned to capitalise on the opportunities across our target markets, having expanded our product offerings, sales capabilities and ecosystem partnerships over the past nine months. As a result, we are raising our revenue and profitability guidance for fiscal 2017.” Fiscal fourth quarter 2017 outlook Quantum provided the following guidance for the fiscal fourth quarter: Total revenue of $120 million to $125 million. GAAP and non-GAAP gross margin of 41-43 per cent. GAAP and non-GAAP operating expenses of $49 million to $50 million and $47 million to $48 million, respectively. Interest expense of $2.4 million and taxes of $400,000. GAAP loss per share of $0.01 and non-GAAP earnings per share of $0.00. Quantum also updated its fiscal 2017 guidance. The company now expects: Total revenue of $505 million to $510 million, an increase over its initial guidance. Royalty revenue of at least $35 million. GAAP and non-GAAP gross margin of approximately 42 per cent. GAAP and non-GAAP operating expense of approximately $201 million and approximately $192 million, respectively. Interest expense of $8.0 million and taxes of approximately $1.5 million. GAAP earnings per share of $0.01 to $0.02 and non-GAAP earnings per share of $0.04 to $0.05, respectively — an increase over its initial guidance on both a GAAP and non-GAAP basis. 2017 business highlights Quantum concluded definitive agreements with PNC Bank and TCW Direct Lending on a $170 million financing package. The agreement with PNC includes an $80 million revolving credit facility and an additional $20 million credit line available under an accordion feature. The agreement with TCW provides for a $50 million term loan with TCW that was drawn upon closing and a $20 million delayed draw term loan available through 31st December 2017. The new Scalar platform offers a range of benefits which enable organisations to reduce their data centre footprint and storage costs The company announced StorNext 5.4, the latest version of its award-winning StorNext® file system and data management software. StorNext 5.4 enables customers to integrate their existing public cloud storage accounts and/or third-party, object storage-based private clouds as tiers in a StorNext-managed environment. As a result, users can get all the benefits of StorNext while protecting prior investments and reducing the cost and complexity of cloud administration. Another feature provides the ability to embed asset manager, data management and data sharing applications in StorNext-powered appliances, thereby reducing the time, cost and complexity of deploying and maintaining applications. Quantum introduces new Scalar storage platform Quantum introduced a new Scalar® storage platform optimised for storing and managing the ever-increasing volumes of unstructured data. The first new products based on this platform are the Scalar i6 and Scalar i3 tape libraries and the StorNext AEL6 purpose-built rich media archive appliance. The new Scalar platform offers a range of benefits, including best-in-class storage density — twice that of earlier-generation rack-mounted libraries — which enables organisations of all sizes to reduce their data centre footprint and further reduce their storage costs. Notable scale-out tiered storage customer wins included large deals with several leading broadcasters and postproduction companies, two police departments seeking video surveillance solutions and a broad range of organisations that turned to Quantum for help managing their growing unstructured data archives. These organisations included a major government agency, an automotive electronics supplier that is one of the leaders in self-driving technology, an international weather forecasting agency and a top medical research institute. In data protection, Quantum had a series of notable DXi6900 product family wins, including million dollar-plus deals at an Asian taxation department, a major European insurance company and two big banks, as well as other large deals at a state-owned energy provider in Asia and a leading U.S. telecom company.
Quantum announced joint development initiatives with industry-leading VMS providers Quantum reported results for the fiscal second quarter 2017 that ended 30 September 2016 (all comparisons are relative to the fiscal second quarter 2016 unless otherwise stated) : Total revenue was $134.7 million, an increase of $17.7 million. Scale-out storage revenue grew to a record $46.7 million, up from $29.9 million and the 21st consecutive quarter of year-over-year growth. Total data protection revenue was flat at $78.5 million, consisting of $18.7 million in disk backup systems revenue (up 3 per cent), $45.2 million in tape automation revenue (down 7 per cent) and $14.6 million in devices and media revenue (up 26 per cent). Royalty revenue was $9.5 million, an increase of 9 per cent. GAAP gross margin was 41.2 per cent, and non-GAAP gross margin was 41.4 per cent, up from 39.6 per cent and 39.9 per cent, respectively. GAAP operating income was $5.3 million, and non-GAAP operating income was $7.5 million, an improvement of $15.0 million and $13.3 million, respectively. GAAP net income was $3.8 million, or $0.01 per diluted share, and non-GAAP net income was $6.0 million, or $0.02 per diluted share. This represented an improvement of $0.05 per diluted share on both a GAAP and non-GAAP basis. Extending media & entertainment leadership “We began this fiscal year with a clear focus on delivering solid growth and profitability, and our results in the first two quarters demonstrate our strong execution and increasing momentum,” said Jon Gacek, president and CEO of Quantum. “For the first half of the fiscal year, we’ve increased total revenue by $23 million over the same period last year, growing scale-out storage by 34 per cent and data protection — where the market remains challenging — by 3 per cent. On this $23 million of additional revenue, we’ve improved net income by more than $20 million, reflecting the significant leverage our financial model provides as we grow.” "For data protection, we’re continuing to leverage our technology leadership, extensive customer base, and channel and technology partnerships to generate profit and cash" “As we start the second half of fiscal 2017, we’re focused on continuing to drive scale-out storage growth by further extending our media and entertainment leadership and expanding our footprint in video surveillance and in technical workflows with large unstructured data archive needs. For data protection, we’re continuing to leverage our technology leadership, extensive customer base, and channel and technology partnerships to generate profit and cash.” Fiscal third quarter 2017 outlook Quantum provided the following guidance for the fiscal third quarter: Total revenue of $125 million to $130 million. GAAP and non-GAAP gross margin of 41-43 per cent. GAAP and non-GAAP operating expenses of $49 million to $51 million and $47 million to $49 million, respectively. Interest expense of $2.4 million and taxes of $400,000. GAAP loss per share of $0.01 to GAAP earnings per share of $0.01 and non-GAAP earnings per share of $0.00 to $0.02. Fiscal second quarter 2017 business highlights Other notable scale-out storage wins included large deals involving technical workflows and management of unstructured data archives at a U.S. military agency, an electric power administrator and a global laboratory testing services provider Quantum announced a new media reference architecture for animation and visual effects workflows that is built on the company’s award-winning Xcellis high-performance storage. This architecture overcomes the time- and resource-consuming challenge of transferring content between animation and editorial departments over a network by optimising storage capabilities for both operations in a single shared environment, thereby streamlining workflows and boosting overall efficiency and productivity. The company introduced the DXi6900-S, the first deduplication appliance to incorporate 8TB self-encrypting drives, delivering the highest density backup available and enabling customers to reduce power consumption by 50 per cent, compared to competing deduplication appliances. It also integrates the latest SSD technology to provide metadata storage and access. As a result, the DXi6900-S dramatically speeds ingest, read, replication and space reclamation performance, allowing users to complete all these tasks several times faster than with previous DXi systems and numerous competitive products. Continuing to expand its ecosystem partnerships in video surveillance, Quantum announced joint development initiatives with four industry-leading Video Management System (VMS) providers — Aimetis Corp., On-Net Surveillance Systems Inc. (OnSSI), Qognify and Verint Systems Inc. Under the initiatives, these partners have certified interoperability with Quantum multi-tier storage offerings, including StorNext 5 data management and QXS hybrid storage, ensuring that users have access to thoroughly tested and integrated storage solutions suited to their unique environment. Key scale-out storage customer wins included million dollar-plus deals with a major media company for a multi-faceted project and a global consumer electronics company for corporate video, as well as large deals with a leading car company using video surveillance in its manufacturing facility and a solar company that uses surveillance for product line quality control. Other notable scale-out storage wins included large deals involving technical workflows and management of unstructured data archives at a U.S. military agency, an electric power administrator and a global laboratory testing services provider. In data protection, major customer wins included million dollar-plus deals at a European banking IT support operation, a large supermarket chain and a U.S. government department, with the first two involving Quantum’s new DXi6900-S deduplication appliance.
Rector has than 15 years of enterprise storage experience, including 12 years as a Chief Marketing Officer Quantum Corporation announced that Molly Rector has joined the company as the Vice President of Marketing. Rector brings more than 15 years of enterprise storage experience to the role, including 12 years as a Chief Marketing Officer—most recently at DataDirect Networks (DDN), an HPC storage provider, and previously at archive storage vendor Spectra Logic. Her appointment comes as Quantum continues to expand its portfolio of scale-out storage, data protection and archive solutions, providing a unique combination of high performance, low-cost capacity, and fast access to meet increasing business demands.Deep understanding of customers“Molly has a deep understanding of customers, their workflows and what it takes to address their evolving storage and data management challenges,” said Jon Gacek, President and CEO of Quantum. “She also has a demonstrated record of success in expanding market opportunities and working closely with sales teams to drive profitable growth. I’m excited about drawing on her extensive experience as we look to build on our market momentum and deliver increased value to our customers, partners, and shareholders.”Extensive experienceJust prior to joining Quantum, Rector spent nearly three years at DDN as CMO and Executive Vice President of Global Marketing and Product Management. During her tenure, she led the company’s successful expansion into five new vertical markets, helping to increase the company’s customer base by 14 percent a year and contributing to its double-digit revenue growth. "Molly has a deep understandingof customers, their workflowsand what it takes to addresstheir evolving storage and data management challenges" Before DDN, from 2004 to 2014, Rector was CMO and Executive Vice President of Worldwide Marketing and Product Management at Spectra Logic, where she drove the company’s strategy shift from a point technology focus to a solution-centric approach and increased the sales funnel by more than 40 percent. As part of an initiative to expand Spectra Logic’s market, she also founded the Active Archive Alliance, an industry coalition formed to educate end users on the evolving new technologies that enable reliable, online, and efficient access to archived data. She continues to serve on the Alliance board, as well as the board of the Storage Networking Industry Association.Quantum's growth objectives“Having both competed against and partnered with Quantum over the years, I know what a strong technology and product portfolio the company has and how uniquely suited it is to meeting some of the most difficult storage challenges organisations are facing,” said Rector. “I look forward to bringing this message and the benefits of Quantum’s solutions to a broader range of customers and working with the rest of the leadership team to achieve the company’s growth objectives.” Save