Quantum Corporation has filed a Form 12b-25 Notification of Late Filing because it is unable to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 by November 9, 2023, the original due date for such filing.
As a result, it is postponing its 2FQ24 earnings announcement and conference call, which are typically held in the second week of November.
It has delayed filing the Form 10-Q because it is re-evaluating its application of Standalone Selling Price as part of Accounting Standards Codification (ASC) Topic 606.
It does not have a set date for completing this re-evaluation but is working to finish it ASAP.
The company’s current method of accounting was adopted in August 2019 after it finalized a restatement of its financial statements. It has applied that method consistently since then but has decided that it is appropriate to re-evaluate its methodology for accounting under ASC 606. At the conclusion of this re-evaluation, it intends to announce the results and have a conference call to discuss full financials for 2FQ24. It is providing its cash and long-term debt balances as of September 30, 2023, which are unaudited below.
In conjunction with this announcement, it has worked with its lenders under its Term Loan Credit Agreement and Amended and Restated Revolving Credit Agreement. Those lenders have granted waivers with respect to Quantum’s financials for 2FQ24 while it re-evaluates its methodology for accounting under ASC 606. The waivers are described in an SEC Form 8-K that also was filed today.
Liquidity and debt
- Cash and cash equivalents were $25.6 million, compared to $25.7 million as of September 30, 2022.
- Outstanding term loan debt was $87.9 million, compared to $77.2 million as of September 30, 2022. Outstanding borrowings under the revolving credit facility was $21.5 million, compared to $21.5 million as of September 30, 2022.
- Total interest expense for the three-month period ended September 30, 2023 was $3.9 million, compared to $2.7 million for the same period a year ago.