Quantum: Preliminary Results For 3FQ15

Quantum Corp. announced preliminary results for the fiscal third quarter 2015 ended December 31, 2014 (unless otherwise noted, all comparisons are relative to the fiscal third quarter 2014).

Total revenue was approximately $142 million, slightly below the low end of the company’s October guidance range of $145 million to $150 million.

This was down slightly year-over-year, primarily due to a 31% decline in revenue from OEM tape automation partners.

Total OEM revenue was approximately $15 million for the quarter, representing 12% of overall non-royalty revenue.

Total branded revenue was approximately $116 million, an increase of 2% and the third consecutive quarter of year-over-year growth.

Scale-out storage and related service revenue was approximately $27 million, up from $15 million.

Revenue from DXi and related service revenue was approximately $24 million, an increase of $1 million.

GAAP operating income was approximately $10 million, up from a GAAP operating loss of $80 thousand.

GAAP net income was approximately $7 million, resulting in $0.03 per diluted share which was in line with the company’s guidance. This was up from a GAAP net loss of $2 million, or $0.01 per diluted share.

Non-GAAP operating income was approximately $14 million, an increase of $5 million.

Non-GAAP net income was approximately $11 million, or $0.04 per diluted share, which was in line with the company’s guidance. This was up from $6 million, or $0.02 per diluted share.

Total cash and cash equivalents were approximately $110 million as of December 31, 2014.

“Our preliminary third quarter results again demonstrate the leverage in our financial model – while total revenue was slightly below our guidance, we still delivered bottom line results in line with guidance,” said Jon Gacek, president and CEO. “In fact, GAAP net income was the highest in more than five years as we continued to capitalize on the strategic improvements we’ve made over the last 18 months and drive further operational efficiencies throughout the business.

“We’re also pleased with the growth in our branded business, which makes up an increasing%age of our total revenue. A key driver of our branded growth is the tremendous market momentum our scale-out storage solutions continue to achieve. With year-over-year revenue increasing almost 80% for the quarter, scale-out storage revenue in the first three quarters of our fiscal year grew nearly 60% over the comparable period the year before. In addition, we had our second consecutive quarter of year-over-year growth in DXi revenue.”

Quantum will provide more details on its third quarter results in its earnings announcement on January 29.