"While these remain difficult economic times, Overland is focused on what will enable us to succeed in the long term - rightsizing our operations to bring them more in line with expectations and innovating for future growth," said Eric L. Kelly CEO of
Net revenue for the fiscal 2010 first quarter was
Compared to the prior-year quarter, branded-product sales declined 48.8 percent and service-related sales were constant at
Gross-profit margin percentage of 27.0 percent remained unchanged compared to the same period a year ago due primarily to cost-saving initiatives and improved operational efficiencies implemented during fiscal 2009.
Operating expenses decreased for the fiscal 2010 first quarter to
Cash at
About
As a leading, global specialist in backup, recovery and archive,
Except for the factual statements made herein, the information contained in this news release consists of forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as "believes," "hopes," "intends," "estimates," "expects," "projects," "plans," "anticipates" and variations thereof, or the use of future tense, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Such forward-looking statements are not guarantees of performance and our actual results could differ materially from those contained in such statements. Factors that could cause or contribute to such differences include: our ability to maintain and increase sales volumes of our products; our ability to continue to aggressively control costs; the continued availability of our non-OEM accounts receivable financing arrangements; our ability to achieve the intended cost savings and maintain quality with our new manufacturing partner; our ability to generate cash from operations or raise outside capital to service and repay debt as it comes due; our ability to introduce new competitive products and the degree of market acceptance of such new products; the timing and market acceptance of new products introduced by our competitors; our ability to maintain strong relationships with branded channel partners; customers', suppliers' and creditors' perceptions of our continued viability; rescheduling or cancellation of customer orders; loss of a major customer; general competition and price measures in the market place; unexpected shortages of critical components; worldwide information technology spending levels; and general economic conditions. Reference is also made to other factors detailed from time to time in the company's periodic reports filed with the
Overland,
- Financial Tables Follow -
OVERLAND STORAGE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
September 30,
-------------
2009 2008
---- ----
(Unaudited)
Net revenue $19,313 $32,303
Cost of revenue 14,105 23,581
------ ------
Gross profit 5,208 8,722
----- -----
Operating expenses:
Sales and marketing 4,274 9,425
Research and development 1,457 3,177
General and administrative 2,679 3,027
Impairment of long-lived assets -
----- ---
Total expenses 8,410 15,629
----- ------
Operating loss (3,202) (6,907)
Interest (expense) income, net (384) 64
Other expense, net (34) (187)
--- ----
Loss before income taxes (3,620) (7,030)
Income taxes 72 (124)
--- ----
Net loss $(3,692) $(6,906)
======= =======
Net loss per share:
Basic and Diluted $(0.29) $(0.54)
====== ======
Shares used in computing net loss per share:
Basic and Diluted 12,778 12,768
OVERLAND STORAGE, INC.
SELECTED BALANCE SHEET INFORMATION
(In thousands)
September 30, June 30,
2009 2009
---- ----
(unaudited)
ASSETS
--------
Cash $3,997 $5,456
Accounts receivable, net 12,155 12,690
Inventories 11,742 12,492
Other current assets 7,366 7,410
----- -----
Total current assets 35,260 38,048
Property, plant and equipment, net 952 1,107
Other assets 7,788 7,897
----- -----
Total assets $44,000 $47,052
======= =======
LIABILITIES & EQUITY
----------------------
Current liabilities, excluding debt $34,421 $33,647
Debt, current portion 7,332 7,025
Long-term debt, net of current portion - 693
Other long-term liabilities 5,681 5,802
Shareholders' equity (3,434) (115)
------ ----
Total liabilities and equity $44,000 $47,052
======= =======
SOURCE
Kurt L. Kalbfleisch,
VP Finance and CFO
of Overland Storage, Inc.,
+1-858-571-5555,
kkalbfleisch@overlandstorage.com;
or
Sue Hetzel
of HetzelMeade Communications,
+1-760-434-9927,
sue@hetzelmeade.com,
for Overland Storage, Inc.
