Quantum Revenue to Be Approximately $120 Million for March Quarter, Down 7% Q/Q

Quantum Corp. has amended its credit agreement with Wells Fargo Capital Finance, LLC to extend the availability of its credit line to August 10, 2017.

In addition to the amended credit agreement, Quantum also announced preliminary results for the fiscal fourth quarter 2016 ended March 31, 2016:

• Total revenue was approximately $120 million, the midpoint of the company’s January guidance range.
• On a GAAP basis, Quantum expects operating income of approximately $5 million and earnings per diluted share of approximately $0.01, excluding a possible non-cash goodwill impairment charge for the quarter. The amount of the charge will be finalized during the company’s annual audit and could range from $0 to $56 million, as stated in Quantum’s Form 10-Q filing on February 5, 2016.
• On a non-GAAP basis, Quantum expects operating income of approximately $8.5 million and earnings per diluted share of approximately $0.02 for the fiscal fourth quarter.

“I’m pleased with the progress we made in the quarter, including the combination of solid revenue and profitability which again demonstrated the leverage in our financial model,” said Jon Gacek, president and CEO, Quantum. “We also built a strong foundation for fiscal 2017, extending our credit line beyond the current year and securing a major, multi-year scale-out storage win for a large cloud project that is expected to contribute significant revenue over the course of fiscal 2017. In fact, we expect this win and our overall scale-out storage opportunity will result in year-over-year total revenue growth in fiscal 2017 as well as higher profitability and cash flow.”