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Quantum Corporation Reports Fiscal Third Quarter 2015 Results
Highlights:
- Delivered Branded Revenue of $116 Million, Up 2% Year-over-Year
- Grew Scale-out Storage Revenue 77% Year-over-Year to $27 Million
- Increased DXi Deduplication Revenue 5% Year-over-Year to $24 Million
- Generated GAAP and Non-GAAP Net Income of $7 Million and $11 Million, Up $9 Million and $5 Million Year-over-Year, Respectively

Company Also Announces $50 Million Cash Repurchase of Convertible Notes Due November 2015

SAN JOSE, Calif., Jan. 29, 2015 /PRNewswire/ -- Quantum Corp. (NYSE: QTM) today reported results for the fiscal third quarter 2015 ended Dec. 31, 2014.

Fiscal Third Quarter 2015 Results

(Unless otherwise noted, all comparisons are relative to the fiscal third quarter 2014.)

  • Total revenue was $142.1 million, down slightly due primarily to a 33 percent decline in OEM tape automation revenue. In addition, total revenue was $1.4 million lower than it would have been had foreign exchange rates remained the same year-over-year.
  • Total branded revenue grew to $116.2 million, a 2 percent increase.
  • Scale-out storage and related service revenue increased 77 percent to a record $27 million, with significant contributions from both StorNext Pro™ Solutions and Lattus™ extended online storage systems.
  • DXi® backup and deduplication appliance revenue increased 5 percent to $24 million, driven by the strong performance of Quantum's new DXi6900 platform.
  • GAAP operating income was $9.6 million, up from an operating loss of $0.1 million.
  • GAAP net income was $6.9 million, or $0.03 per diluted share, up from a net loss of
    $2.5 million, or $0.01 per diluted share.
  • Non-GAAP operating income increased to $13.6 million, from $8.6 million.
  • Non-GAAP net income improved to $10.9 million, or $0.04 per diluted share, up from
    $6.2 million, or $0.02 per diluted share.
  • Quantum generated $2.6 million in cash from operations and ended the quarter with nearly
    $110 million in total cash and cash equivalents.

"We are very pleased with our strong third quarter results, as we continued to build on the momentum we saw in the first half of our fiscal year," said Jon Gacek, president and CEO of Quantum. "Branded revenue increased year-over-year for the third consecutive quarter, driven by scale-out storage revenue growth of nearly 80 percent as well as higher DXi revenue. Reflecting the improvements we've made in our operating model, we also significantly increased net income year-over-year and delivered our best operating margins in four years — nearly
7 percent and 10 percent on a GAAP and non-GAAP basis, respectively.

"With our market momentum, our strong solutions portfolio and the significant leverage our financial model provides, we are well-positioned to drive year-over-year growth and increased profit in the final quarter of fiscal 2015 and in the coming year."

In addition to reporting its third quarter results, Quantum also announced that it has entered into an agreement to repurchase $50 million of its convertible notes due November 2015 in an all-cash transaction expected to close on Jan. 30, 2015. (For additional information, see Quantum's SEC Form 8-K filed today.)

Fiscal Fourth Quarter 2015 Outlook

For the fiscal fourth quarter, Quantum expects:

  • Revenue of approximately $130 million to $135 million, based on typical seasonality.
  • GAAP and non-GAAP gross margin of approximately 43-45 percent.
  • GAAP operating expenses of approximately $55 million to $56 million and non-GAAP operating expenses of $52 million to $53 million.
  • GAAP operating income of $2.5 million to $3.5 million and non-GAAP operating income of
    $6 million to $7 million.
  • Interest expense of $2.1 million and taxes of $0.5 million.
  • GAAP net loss of $0.8 million to $1.8 million, or a loss of less than $0.01 to a loss of $0.01 per diluted share, and non-GAAP net income of $3 million to $4 million, or $0.01 to $0.02 per diluted share.

Fiscal Third Quarter 2015 Business Highlights

  • Quantum extended its line of high-performance StorNext Pro Solutions with the introduction of StorNext Pro Foundation, a low-cost, integrated shared storage system designed specifically for smaller workgroups. Built on proven StorNext 5 collaboration and workflow software, StorNext Pro Foundation brings the capabilities of Quantum's award-winning StorNext Pro Solutions to a new audience of media professionals in post and broadcast as well as those managing corporate and government video.
  • Avere Systems and Quantum announced a joint storage solution designed to optimize workflows for the oil and gas industry. Leveraging Quantum's Lattus system, the combination extends online storage by delivering fast access to seismic data via a cost-effective private cloud solution with the extreme scalability and performance needed in the oil and gas market.
  • Reflecting the strength of Quantum's solutions in helping enterprise customers manage and protect their data in some of the most demanding environments, revenue from deals over $200,000 increased by more than 20 percent. These wins included a $4 million StorNext-Lattus deal for managing video at one of the world's largest consumer electronics companies ($3 million of which was recognized in the quarter) and StorNext® deals of more than $300,000 each to two of the top U.S. broadcast networks and an international radio broadcaster. Other wins over $200,000 included DXi6900 sales to a large European banking group, a multinational biopharmaceutical company and a major Asian insurance provider as well as tape automation deals with one of the top international shipping companies, a leading business process and document management firm, and a major American cable network.
  • For the second consecutive year, Quantum won top honors for "Vendor's Reseller Channel Programme of the Year" at the Storage Virtualisation Cloud Awards. The company was recognized for ongoing dedication to the channel through its Quantum Alliance global partner program.

Conference Call and Audio Webcast Notification

Quantum will hold a conference call today, Jan. 29, 2015, at 2:00 p.m. PST to discuss its fiscal third quarter results. Press and industry analysts are invited to attend in listen-only mode. Dial-in number: 719-325-2448, conference ID: 5771187. Quantum will provide a live audio webcast of the conference call beginning today, Jan. 29, 2015, at 2:00 p.m. PST. Site for the webcast and related information: www.quantum.com/investors.

Following completion of the call, a recorded replay of the webcast will be available at www.quantum.com/investors. For those without access to the Internet, a replay of the call will be available beginning at 5:00 p.m. PST on Jan. 29, 2015 through Feb. 3, 2015 at 5:00 p.m. PST. To listen to the telephonic replay, call 719-457-0820, replay passcode: 5771187.

About Quantum

Quantum is a leading expert in scale-out storage, archive and data protection, providing solutions for capturing, sharing and preserving digital assets over the entire data lifecycle. From small businesses to major enterprises, more than 100,000 customers have trusted Quantum to address their most demanding data workflow challenges. With Quantum, customers can Be Certain™ they have the end-to-end storage foundation to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. See how at www.quantum.com/customerstories.

Quantum, the Quantum logo, Be Certain, DXi, StorNext, StorNext Pro and Lattus are either registered trademarks or trademarks of Quantum Corporation and its affiliates in the United States and/or other countries. All other trademarks are the property of their respective owners.

"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, without limitation, our statement that we are well-positioned to drive year-over-year growth and increased profit in the final quarter of fiscal 2015 and in the coming year and all of our statements under the section titled Fiscal Fourth Quarter 2015 Outlook are forward-looking statements within the meaning of the Safe Harbor. All forward-looking statements in this press release are based on information available to Quantum on the date hereof. These statements involve known and unknown risks, uncertainties and other factors that may cause Quantum's actual results to differ materially from those implied by the forward-looking statement. More detailed information about these risk factors, and additional risk factors are set forth in Quantum's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Risk Factors" in Quantum's Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 6, 2014 and in Quantum's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 7, 2014. Quantum expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

Quantum believes that the non-GAAP financial measures disclosed above provide useful and supplemental information to investors regarding its quarterly financial performance. Quantum management and Board of Directors use these non-GAAP financial measures internally to understand, manage and evaluate the company's business results and make operating decisions. For instance, Quantum management often makes decisions regarding staffing, future management priorities and how the company will direct future operating expenses on the basis of non-GAAP financial measures. In addition, compensation of our employees is based in part on the performance of our business based on non-GAAP operating income.

The non-GAAP financial measures used in this press release exclude the impact of the items below for the following reasons:

Amortization of Intangible Assets

This includes acquired intangibles such as purchased technology and customer relationships in connection with prior acquisitions. These expenses are not factored into management's evaluation of potential acquisitions or Quantum's performance after completion of the acquisitions because they are not related to Quantum's core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related charges from non-GAAP measures provides investors with a basis to compare Quantum against the performance of other companies without the variability caused by purchase accounting.

Share-Based Compensation Expense

Share-based compensation expense relates primarily to equity awards such as stock options and restricted stock units. Share-based compensation is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond Quantum's control. Management believes that non-GAAP measures adjusted for share-based compensation provide investors with a basis to measure Quantum's core performance against the performance of other companies without the variability created by share-based compensation as a result of the variety of equity awards used by other companies and the varying methodologies and assumptions used.

Restructuring Charges

Restructuring charges primarily relate to expenses associated with changes to Quantum's operating structure. Restructuring charges are excluded from non-GAAP financial measures because they are not considered core operating activities. Although Quantum has engaged in various restructuring activities in the past, each has been a discrete event based on a unique set of business objectives. Management believes that it is appropriate to exclude restructuring charges from Quantum's non-GAAP financial measures, as it enhances the ability of investors to compare Quantum's period-over-period operating results from continuing operations.

Outsourcing Transition Costs

Outsourcing transition costs are expenses attributable to transitioning our manufacturing to an outsourced model. These costs are excluded from non-GAAP financial measures because they are not considered core operating activities, and management believes that it is appropriate to exclude these costs in order to provide investors the ability to compare Quantum's period-over-period operating results from continuing operations.

Proxy Contest and Related Costs

Proxy contest and related costs are expenses incurred to respond to activities and inquiries of Starboard Value LP, including their proxy solicitation. The Company has not incurred significant expenses in connection with such matters in historical periods and these costs are not considered core operating activities. Management believes that it is appropriate to exclude these costs in order to provide investors the ability to compare Quantum's period-over-period operating results from continuing operations.

Crossroads Patent Litigation Costs

Crossroads patent litigation costs are expenses incurred to defend ourselves and perform other activities related to a patent infringement lawsuit filed by Crossroads Systems, Inc. These costs are excluded from non-GAAP financial measures because they are not considered core operating activities, and management believes that it is appropriate to exclude these costs in order to provide investors the ability to compare Quantum's period-over-period operating results from continuing operations.

Acquisition Expenses

The acquisition expenses were those expenses incurred to acquire Symform, Inc. and are not part of Quantum's future core operations.

Symform Expenses, Net

Quantum acquired a cloud storage services platform from Symform, Inc. ("Symform") in July 2014. Symform revenue comprises revenue generated from the Symform cloud storage services platform. Symform expenses consist of costs related to running, maintaining and further developing the Symform cloud storage services platform as well as the costs of integrating Symform into Quantum's business. Net Symform expenses represent Symform expenses less Symform revenue, and non-GAAP gross margin excludes both Symform revenue and cost of revenue. Management believes that it is appropriate to exclude these amounts in order to provide investors with a view of Quantum's results consistent with how management views and is running the business.

Loss on Debt Extinguishment

The loss on debt extinguishment relates to a specific debt repurchase action undertaken in January 2015. The loss is excluded from non-GAAP financial measures because it is not considered a core operating activity and management believes that it is appropriate to exclude the loss in order to provide investors the ability to compare Quantum's period-over-period results from continuing operations.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material impact on the company's reported financial results and, therefore, should not be relied upon as the sole financial measures to evaluate the company. The non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, GAAP financial measures. Investors are encouraged to review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

Note 1

In the fourth quarter of fiscal year 2014, Quantum identified errors related to the accounting for rent expense and certain allowances for estimated future price adjustments to customers which impacted prior reporting periods. As a result, the company's financial statements for the third quarter of fiscal 2014 have been revised. Revenue for the third quarter of fiscal 2014 has been reduced by $0.1 million and general and administrative expense has been reduced by less than $0.1 million. For additional information, refer to our Form 10-K filed with the Securities and Exchange Commission on June 6, 2014.

Contact:
Brad Cohen
Public Relations
Quantum Corp.
(408) 944-4044
brad.cohen@quantum.com

Brinlea Johnson or Allise Furlani
Investor Relations
The Blueshirt Group
(212) 331-8424 or (212) 331-8433
brinlea@blueshirtgroup.com or allise@blueshirtgroup.com

 

QUANTUM CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)







December 31, 2014


March 31,  2014*







Assets





Current assets:





    Cash and cash equivalents 

$                 106,983


$                99,125


    Restricted cash 

2,677


2,760


    Accounts receivable 

110,628


101,605


    Manufacturing inventories 

38,298


34,815


    Service parts inventories 

24,361


25,629


    Other current assets 

10,174


10,161


  Total current assets

293,121


274,095







Long-term assets:





 Property and equipment 

15,292


17,574


 Intangible assets 

891


3,911


 Goodwill 

55,613


55,613


 Other long-term assets 

9,030


10,605


Total long-term assets

80,826


87,703








$                 373,947


$              361,798







Liabilities and Stockholders' Deficit





Current liabilities:





 Accounts payable 

$                   51,081


$                41,792


 Accrued warranty 

4,788


6,116


 Deferred revenue, current 

89,973


98,098


 Accrued restructuring charges, current 

3,136


4,345


 Convertible subordinated debt, current 

133,735


-


 Accrued compensation 

31,270


25,036


 Other accrued liabilities 

13,901


15,168


Total current liabilities

327,884


190,555







Long-term liabilities:





  Deferred revenue, long-term 

39,251


40,054


  Accrued restructuring charges, long-term 

3,061


4,023


  Convertible subordinated debt, long-term 

70,000


203,735


  Other long-term liabilities 

10,423


10,831


Total long-term liabilities

122,735


258,643







  Stockholders' deficit

(76,672)


(87,400)








$                 373,947


$              361,798




*

Derived from the March 31, 2014 audited Consolidated Financial Statements.

 


QUANTUM CORPORATION



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



(In thousands, except per share amounts)



(Unaudited)
















 Three Months Ended  




 Nine Months Ended 




December 31, 2014


December 31, 2013




December 31, 2014


December 31, 2013






(Revised)  Note 1






(Revised)  Note 1


Revenue:












Product 

$                             92,166


$                             98,287




$                           257,576


$                           268,892



Service 

39,191


36,926




116,848


109,612



Royalty 

10,706


10,656




30,873


46,693



Total revenue

142,063


145,869




405,297


425,197


Cost of revenue:












Product 

59,772


64,502




170,273


181,167



Service 

17,224


19,706




52,502


56,053



Restructuring charges related to cost of revenue

-


288




-


377



Total cost of revenue

76,996


84,496




222,775


237,597



  Gross margin

65,067


61,373




182,522


187,600















Operating expenses:












Research and development

13,969


16,010




43,680


49,063



Sales and marketing

27,494


29,424




83,417


89,577



General and administrative

13,815


14,261




42,271


43,745



Restructuring charges

187


1,758




1,676


4,525



Total operating expenses

55,465


61,453




171,044


186,910



Gain on sale of assets

-


-




462


-



Income (loss) from operations

9,602


(80)




11,940


690















Other income and expense

125


370




215


791



Interest expense

(2,460)


(2,440)




(7,360)


(7,319)



Income (loss) before income taxes

7,267


(2,150)




4,795


(5,838)



Income tax provision

336


308




940


1,232



Net income (loss)

$                                6,931


$                               (2,458)




$                                3,855


$                               (7,070)















Income (loss) per share:












Basic

$                                 0.03


$                                (0.01)




$                                 0.02


$                                (0.03)



Diluted

$                                 0.03


$                                (0.01)




$                                 0.01


$                                (0.03)















Weighted average shares:












Basic

255,860


248,135




253,773


246,183



Diluted

302,855


248,135




257,807


246,183



























Included in the above Statements of Operations:

















Amortization of intangibles:












Cost of revenue

$                                  160


$                                  368




$                                  753


$                               1,104



Sales and marketing

-


1,856




2,784


5,569




160


2,224




3,537


6,673



Share-based compensation:












Cost of revenue

362


509




1,109


1,560



Research and development

600


862




1,983


2,638



Sales and marketing

830


994




2,627


3,148



General and administrative

1,126


1,056




2,936


2,922




2,918


3,421




8,655


10,268



Outsourcing transition costs:












Cost of revenue

-


952




126


952




-


952




126


952



Proxy contest and related costs:












General and administrative

125


-




972


-




125


-




972


-



Crossroads patent litigation costs:












General and administrative

325


-




744


-




325


-




744


-



Acquisition expenses:












General and administrative

-


-




4


-




-


-




4


-



Symform expenses, net:












Gross margin

30


-




50


-



Research and development

131


-




241


-



Sales and marketing

104


-




195


-




265


-




486


-

















 Note 1 is presented above, before the Condensed Consolidated Balance Sheets.

 

QUANTUM CORPORATION

GAAP TO NON-GAAP RECONCILIATION

(In thousands, except per share amounts)

(Unaudited)

















Three Months Ended December 31, 2014


Gross Margin


Gross Margin Rate



Income From Operations


Operating Margin


Net Income


Per Share Net Income, Basic


Per Share Net Income, Diluted

GAAP 

$   65,067


45.8%



$                 9,602


6.8%


$      6,931


$               0.03


$                 0.03

Non-GAAP Reconciling Items:















Amortization of intangibles

160





160




160





Share-based compensation

362





2,918




2,918





Restructuring charges

-





187




187





Proxy contest and related costs

-





125




125





Crossroads patent litigation costs

-





325




325





Symform expenses, net

30





265




265





Non-GAAP

$     65,619


46.2%



$                 13,582


9.6%


$      10,911


$                0.04


$                  0.04































 Computation of basic and diluted net income per share: 



 GAAP 


 Non-GAAP 

 Net income 








$              6,931


$              10,911

 Interest on dilutive convertible notes 



902


902

 Income for purposes of computing income per diluted share 



$              7,833


$              11,813
















 Weighted average shares: 










 Basic  












255,860


255,860

 Dilutive shares from stock plans 





4,493


4,493

 Dilutive shares from convertible notes 





42,502


42,502

 Diluted 












302,855


302,855
































Nine Months Ended December 31, 2014


Gross Margin


Gross Margin Rate



Income From Operations


Operating Margin


Net Income 


Per Share Net Income, Basic


Per Share Net Income, Diluted

GAAP 

$ 182,522


45.0%



$               11,940


2.9%


$      3,855


$               0.02


$                 0.01

Non-GAAP Reconciling Items:















Amortization of intangibles

753





3,537




3,537





Share-based compensation

1,109





8,655




8,655





Restructuring charges

-





1,676




1,676





Outsourcing transition costs

126





126




126





Proxy contest and related costs

-





972




972





Crossroads patent litigation costs

-





744




744





Acquisition expenses

-





4




4





Symform expenses, net

50





486




486





Non-GAAP

$   184,560


45.5%



$                 28,140


6.9%


$      20,055


$                0.08


$                  0.08
















 Computation of basic and diluted net income per share: 


 GAAP 


 Non-GAAP 

 Net income 








$              3,855


$              20,055

 Interest on dilutive convertible notes 






-


2,707

 Income for purposes of computing income per diluted share 




$              3,855


$              22,762
















 Weighted average shares: 







 Basic  









253,773


253,773

 Dilutive shares from stock plans 




4,034


4,034

 Dilutive shares from convertible notes 


-


42,502

 Diluted 












257,807


300,309































The non-GAAP financial information set forth in this table is not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial information used by other companies.















































Three Months Ended December 31, 2013


(Revised)  Note 1


Gross Margin


Gross Margin Rate



Income (Loss) From Operations


Operating Margin


Net Income (Loss )


Per Share Net Income (Loss), Basic


Per Share Net Income (Loss), Diluted

 GAAP  

$   61,373


42.1%



$                     (80)


(0.1)%


$    (2,458)


$             (0.01)


$               (0.01)

 Non-GAAP Reconciling Items: 















 Amortization of intangibles 

368





2,224




2,224





 Share-based compensation 

509





3,421




3,421





 Restructuring charges 

288





2,046




2,046





Outsourcing transition costs

952





952




952





 Non-GAAP 

$     63,490


43.5%



$                   8,563


5.9%


$        6,185


$                0.02


$                  0.02
















 Computation of basic and diluted net income (loss) per share: 




 GAAP 


 Non-GAAP 

 Net income (loss) 







$            (2,458)


$                6,185

 Interest on dilutive convertible notes 




-


902

 Income (loss) for purposes of computing income (loss) per diluted share 


$            (2,458)


$                7,087
















 Weighted average shares: 











 Basic 












248,135


248,135

 Dilutive shares from stock plans 



-


1,952

 Dilutive shares from convertible notes 





-


42,502

 Diluted 












248,135


292,589

















 Nine Months Ended December 31, 2013 


(Revised)  Note 1


Gross Margin


Gross Margin Rate



Income From Operations


Operating Margin


Net Income (Loss)


Per Share Net Income (Loss), Basic


Per Share Net Income (Loss), Diluted

 GAAP  

$ 187,600


44.1%



$                    690


0.2%


$    (7,070)


$             (0.03)


$               (0.03)

 Non-GAAP Reconciling Items: 















 Amortization of intangibles 

1,104





6,673




6,673





 Share-based compensation 

1,560





10,268




10,268





 Restructuring charges 

377





4,902




4,902





Outsourcing transition costs

952





952




952





 Non-GAAP 

$   191,593


45.1%



$                 23,485


5.5%


$      15,725


$                0.06


$                  0.06
















 Computation of basic and diluted net income (loss) per share: 









 GAAP 


 Non-GAAP 

 Net income (loss) 








$            (7,070)


$              15,725
















 Weighted average shares: 










 Basic 










246,183


246,183

 Dilutive shares from stock plans 







-


2,925

 Diluted 








246,183


249,108
































 Note 1 is presented above, before the Condensed Consolidated Balance Sheets.
















The non-GAAP financial information set forth in this table is not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial information used by other companies.

 

 

QUANTUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)








Nine Months Ended



December 31, 2014


December 31, 2013





(Revised)  Note 1

Cash flows from operating activities:





Net income (loss)


$                  3,855


$                (7,070)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:   





Depreciation 


6,364


8,217

Amortization of intangible assets


3,537


6,673

Amortization of debt issuance costs


1,246


1,225

Service parts lower of cost or market adjustment


2,690


8,715

Gain on sale of assets


(462)


-

Deferred income taxes 


(11)


86

Share-based compensation


8,655


10,268

Other non-cash 


(302)


-

Changes in assets and liabilities, net of effect of acquisition:





Accounts receivable


(9,023)


(7,443)

Manufacturing inventories


(6,145)


5,372

Service parts inventories


(686)


2,993

Accounts payable 


9,325


(8,672)

Accrued warranty 


(1,328)


(1,393)

Deferred revenue


(8,928)


(1,182)

Accrued restructuring charges


(2,197)


309

Accrued compensation


6,774


(1,786)

Other assets and liabilities 


(2,247)


(776)

Net cash provided by operating activities 


11,117


15,536






Cash flows from investing activities:





Purchases of property and equipment


(2,882)


(5,026)

Proceeds from sale of assets


462


-

Change in restricted cash    


(139)


517

Purchases of other investments


(22)


(534)

Return of principal from other investments


104


-

Payment for business acquisition, net of cash acquired


(517)


-

Net cash used in investing activities 


(2,994)


(5,043)






Cash flows from financing activities:





Payment of taxes due upon vesting of restricted stock


(2,212)


(1,807)

Proceeds from issuance of common stock


2,060


2,431

Net cash provided by (used in) financing activities


(152)


624






Effect of exchange rate changes on cash and cash equivalents


(113)


22






Net increase in cash and cash equivalents      


7,858


11,139

Cash and cash equivalents at beginning of period 


99,125


68,976

Cash and cash equivalents at end of period 


$                 106,983


$                   80,115






 Note 1 is presented above, before the Condensed Consolidated Balance Sheets.



 

 

QUANTUM CORPORATION

FORECAST FOURTH QUARTER FISCAL 2015

GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions, except per share amounts)











Percentage Range

Forecast gross margin rate on a GAAP basis

42.6%

-

44.6%

Forecast amortization of intangibles

0.1%

Forecast share-based compensation

0.3%

Forecast gross margin rate on a non-GAAP basis

43.0%

-

45.0%






Dollar Range

Forecast operating expense on a GAAP basis

$54.9

-

$55.9

Forecast share-based compensation

(2.4)

Forecast Crossroads patent litigation costs

(0.3)

Forecast Symform expenses, net

(0.2)

Forecast operating expense on a non-GAAP basis

$52.0

-

$53.0






Dollar Range

Forecast income from operations on a GAAP basis

$     2.5

-

$     3.5

Forecast amortization of intangibles

0.2

Forecast share-based compensation

2.8

Forecast Crossroads patent litigation costs

0.3

Forecast Symform expenses, net

0.2

Forecast income from operations on a non-GAAP basis

$     6.0

-

$     7.0






Dollar Range

Forecast net loss on a GAAP basis

$   (1.8)

-

$   (0.8)

Forecast amortization of intangibles

0.2

Forecast share-based compensation

2.8

Forecast Crossroads patent litigation costs

0.3

Forecast Symform expenses, net

0.2

Forecast loss on debt extinguishment

1.3

Forecast net income on a non-GAAP basis

$     3.0

-

$     4.0






Dollars per Share

Forecast diluted earnings per share on a GAAP basis

$ (0.01)

-

$ (0.00)

Forecast amortization of intangibles

0.00

Forecast share-based compensation

0.01

Forecast Crossroads patent litigation costs

0.00

Forecast Symform expenses, net

0.00

Forecast loss on debt extinguishment

0.01

Forecast diluted earnings per share on a non-GAAP basis

$   0.01

-

$   0.02













Estimates based on current (January 29, 2015) projections.  





The projected GAAP and non-GAAP financial information set forth in this table represent forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For risk factors that could impact these projections, see our Annual Report on Form 10-K as filed with the SEC on June 6, 2014.  We disclaim any obligation to update information in any forward-looking statement.





The non-GAAP financial information set forth in this table is not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial information used by other companies.

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/quantum-corporation-reports-fiscal-third-quarter-2015-results-300028137.html

SOURCE Quantum Corp.