Quantum Corporation reports fiscal four quarter and full year 05 results

Quantum Corporation reports fiscal fourth quarter and full year 2015 results 07 May 2015

Quantum Corporation reports fiscal fourth quarter and full year 2015 results

Fiscal 2015 year-over-year highlights:

Total revenue of $553.1 million, with branded revenue up 7% to $448.0 million after growing 20% in fourth quarter

Scale-out storage revenue up 74% to record $102.4 million, with 116% growth in

fourth quarter

DXi deduplication revenue up 10% to $88.2 million, with 30% growth in fourth quarter

GAAP and non-GAAP net income of $16.8 million and $38.1 million, up $38.2 million and $24.4 million, respectively

SAN JOSE, Calif. 7 May 2015 Quantum Corp. (NYSE: QTM) reported results for the fiscal fourth quarter and full year 2015 ended 31 March 2015.

Fiscal fourth quarter 2015 results

(All comparisons are relative to the fiscal fourth quarter of 2014.)

Revenue was $147.8 million, up 15 percent, primarily driven by strong sales of scale-out storage and DXi deduplication solutions.

Total branded revenue grew to $122.1 million, a 20 percent increase.

Scale-out storage and related service revenue increased 116 percent, to a record

$31.7 million.

DXi deduplication appliance and related service revenue was $25.2 million, an increase of

30 percent.

GAAP operating income was $2.5 million, up from an operating loss of $12.5 million.

GAAP net income was $12.9 million, or $0.04 per diluted share. This included $13.6 million from the gain on sale of Quantum's investment in a privately held company. In the fiscal fourth quarter 2014, the company had a net loss of $14.4 million, or $0.06 per diluted share.

Non-GAAP operating income was $6.3 million, up from an operating loss of $159,000.

Non-GAAP net income was $18.0 million, or $0.06 per diluted share, again including $13.6 million from the gain on sale of Quantum's investment in a privately held company. In the fiscal fourth quarter 2014, Quantum had a net loss of $2.1 million, or $0.01 per diluted share.

Fiscal 2015 results

(All comparisons are relative to fiscal 2014, which included a one-time $15 million royalty payment to Quantum.)

Revenue was $553.1 million, compared to $553.2 million, as Quantum's $29.8 million in branded revenue growth offset the combination of a $14.0 million decline in OEM revenue and a $15.8 million reduction in royalty revenue.

Total branded revenue grew to $448.0 million, a 7 percent increase.

Scale-out storage revenue reached a record level of $102.4 million, growing 74 percent.

DXi revenue was $88.2 million, a 10 percent increase.

GAAP operating income was $14.4 million, up from an operating loss of $11.8 million.

GAAP net income was $16.8 million, or $0.06 per diluted share, compared to a net loss of $21.5 million, or $0.09 per diluted share.

Non-GAAP operating income was $34.4 million, up from $23.3 million.

Non-GAAP net income was $38.1 million, or $0.14 per diluted share, up from $13.7 million, or $0.05 per diluted share.

Quantum ended the fiscal year with $70.6 million in total cash and cash equivalents, which reflected the early repurchase of $50 million of convertible notes due November 2015 in an all-cash transaction completed during the fourth quarter.

Our fourth quarter capped off a year that was a key turning point for Quantum, as we generated strong revenue and profit results that reflect the strategic actions we've taken over the last several years to improve our financial and operational performance, deliver even greater value to customers and position the company for the future, said Linda Breard, cfo. Branded revenue grew year-over-year in all four quarters, driven by growth rates in scale-out storage increasing each quarter ultimately to 116 percent in Q4. We also returned to generating annual growth in DXi revenue, and our full year GAAP net income was the highest it's been in more than five years.

We are well positioned to build on this momentum and drive increased growth and profit in fiscal 2016, said Jon Gacek, president and ceo. Our scale-out storage solutions offer a unique combination of industry-leading performance and low-cost retention through multi-tier storage across sites and the cloud all managed by our StorNext platform. This makes them ideal for addressing increased demands for re-monetising and analysing digital content. As a result, we plan to expand our leadership in media and entertainment and also extend our expertise to other markets such as video surveillance, corporate video and high performance computing applications.

At the same time, we will leverage our long-standing leadership in data protection technology, recently expanded archive offerings and incorporation of Dot Hill disk arrays into our product line to provide our large install base of users and future customers with an even broader range of data centre solutions.

Finally, we will continue to invest in delivering further differentiated solutions, capitalising on new opportunities through sales and marketing initiatives and driving long-term growth.

Fiscal 2016 outlook

For the fiscal first quarter, Quantum expects:

Revenue of approximately $125 million to $130 million, reflecting typical seasonality and the strength of the prior quarter, including the large number of significant deals that closed toward the end of the quarter.

Scale-out storage revenue growth of 50 percent over the fiscal first quarter of 2015.

GAAP and non-GAAP gross margin of approximately 45-46 percent.

GAAP and non-GAAP operating expenses of approximately $57 million and

$54 million, respectively.

GAAP operating loss of $100,000 to operating income of $1.9 million and non-GAAP operating income of $3 million to $5 million.

Interest expense of $1.9 million and taxes of $400,000.

GAAP net loss of $2.1 million to $100,000, or a loss of $0.01 to $0.00 per diluted share, and no

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