Overland: Fiscal 4Q10 Financial Results

(in US$ millions)	4Q09	4Q10	FY09	FY10
Revenues	22.1	19.3	105.6	77.7
*Growth*		-13%		*-26*%
Net income (loss)	(2.7)	(4.2)	(18.0)	(13.0)

Overland Storage, Inc. announced its financial results for the fourth quarter and fiscal year ended June 30, 2010.

Overland Storage reported revenue of $19.3 million for the quarter ended June 30, 2010, an increase of 3.7% from the prior quarter. The net loss for the fourth fiscal quarter was $4.2 million. This includes $1.2 million of non-cash, stock compensation expense.

For the twelve months ended June 30, 2010, the company reported revenue of $77.7 million, compared with $105.6 million for the twelve months ended June 30, 2009. The net loss for fiscal year 2010 was $13.0 million, compared with a net loss of $18.0 million in the prior fiscal year.

Cash and cash equivalents as of June 30, 2010 were $8.9 million compared with $5.5 million as of June 30, 2009.

Eric Kelly, President and Chief Executive Officer of Overland Storage, said: "We are pleased to have stabilized revenues, as the growth of our strategic branded products and stability of our service business has helped to compensate for continuing declines in the OEM business and challenging global economic conditions. This provides the foundation necessary to drive future revenue growth."

Kelly added: "Looking ahead, we remain focused on three strategic priorities – implementing a new asset light business model, driving innovation and expanding our addressable markets. We look forward to describing key milestones in upcoming months and are pleased to resume providing forecasts of certain operating metrics."

Business Outlook
Based on information available as of August 26, 2010, Overland Storage is issuing guidance for the first half of fiscal 2011 as follows: the company expects first half revenue to be in the range of $35 million to $38 million, gross margin in the range of 27 to 31 percent and operating expenses in the range of $18 million to $20 million, including non cash stock compensation charges of $1 to $2 million. Our ability to continue to execute and hit our targeted milestones will assist us in our goal of becoming profitable during fiscal 2011.