Overland: Fiscal 3Q10 Financial Results

(in US$ millions)	3Q09	3Q10	9 mo. 09	9 mo. 10
Revenues	22.3	18.6	83.5	58.4
*Growth*		-17%		*-30*%
Net income (loss)	(3.3)	(2.5)	(15.4)	(8.8)

Overland Storage, Inc. reported third quarter results for its fiscal quarter ended March 31, 2010.

"We are excited about the progress we are making. We are executing as planned with a focus on growing revenue from our branded products and improving operating efficiencies of the business," said Eric Kelly, President and CEO of Overland Storage. "Historically, revenue in our third fiscal quarter is lower than revenue from our second fiscal quarter. During fiscal 2010, revenue declined only 8.8% compared to 19.6% in fiscal 2009. Helping to minimize the decline were successful market acceptance of our new NEO S product, growth of sales in our base SNAP products and continued increases in service revenue."

Selected third quarter results:

Revenue for the third quarter of fiscal 2010 declined 8.8% to $18.6 million from $20.4 million for the prior quarter and 16.6% from $22.3million for the third fiscal quarter of 2009.
Net loss remained relatively flat at $2.5 million for the third quarter of fiscal 2010, or $0.42 per share, compared to $2.6 million, or $0.47 per share, for the prior quarter.
Cash and cash equivalents as of March 31, 2010 were $9.9 million, an increase of 73.7% from $5.7 million as of December 31, 2009.
Income tax receivable of $2.0 million resulting from a change in tax law which allows us to carry back our net operating losses five years.

"This past quarter marks the one-year anniversary of our embarking on our new strategy and transition plan. We have established several new strategic partnerships, successfully launched several new products, completed the financing required to execute on our business plan and aggressively cut expenses to decrease losses," remarked Mr. Kelly. "We believe that these efforts will enable us to position the Company for a successful future."