Overland: Preliminary Fiscal 2Q12 Financial Results

Overland Storage, Inc. announced preliminary financial results for its fiscal 2012 second quarter ended December 31, 2011. Based on preliminary financial results, the company expects to exceed its operating efficiency improvement guidance and meet its prior expectations for second quarter revenue.

Based on preliminary financial results,
the company expects:

• Second quarter revenue of approximately $15.0 million
• A more than 5% sequential reduction in second quarter operating expenses
• A more than 10% reduction in operating expenses for third quarter fiscal 2012 when compared to the first quarter

Overland reported during the second fiscal quarter that the International Trade Commission (ITC) action and district court action against IBM and Dell had been resolved by settlement. Overland’s infringement suit against BDT is ongoing, with an initial determination date from the ITC scheduled to be released on January 26, 2012. The company remains optimistic about the case and is represented by DLA Piper LLP.

"We are pleased to announce that our preliminary revenue for the second quarter is in line with expectations and our preliminary and future operating expense improvements will exceed our guidance," said Eric Kelly, President and CEO of Overland Storage. "While we have seen an industry-wide increase in the price of disk drives as a result of supply shortages caused by the devastating flood in Thailand, we were able to procure adequate quantities during the quarter to meet demand. We continue to see strong customer acceptance for our new SnapServer DX storage solution and look forward to giving more detail in the coming months."