History (1992): Quantum Become $1 Billion Company

Quantum Corp. (Milpitas, CA) reported record sales for the fourth quarter and fiscal 1992, pushing the company past the $1 billion mark.

Sales for the year ended March 31, 1992 were $1.13 billion, an increase of 28% over the $878 million reported for FY91. But net income decreased 37%, from $73.9 million to $46.8 million.

European sales represented approximately 32% of total sales during FY92. The company’s sales in 45FQ92 were also a record at $345 million, up 19% from the $291 million reported in 4Q91, but still with net profits decreasing 14%, from $20 million to $17.2 million.

According to Stephen M. Berkley, COB: “Our sales of $345 million were up 21% from our third quarter sales, which is a significantly higher rate of sequential growth than was achieved by others in our industry. Our profitability also improved this quarter relative to our third quarter. Our gross margin increased to 19.7% from the 16.3% we reported for our third quarter, reflecting favorable shifts in product mix, moderation in the price declines the industry experience over the past year, and cost reductions. Net income also improved significantly on a sequential basis, up 82% from the previous quarter.“

Quantum completed an offering of convertible debentures on April 6, 1992, raising $213 million.

As for Maxtor (San Jose, CA), for its FY92, ended March 31, Maxtor Corp. reported $1.04 billion sales compared to $871.3 million in FY91, a 19.1% improvement. Net loss of $45.4 million changed into a $7.1 million income in one year. In its last quarter, sales and net income had reached $300.0 million and $23.9 million respectively, compared with $223.6 million revenues and $49.8 million net loss in 4091.

This article is an abstract of news published on the former paper version of Computer Data Storage Newsletter on issue ≠52, published on May 1992.