The vendor's quarterly revenue was $37.8 million, down from $48.2 million in the same period last year, and well below analyst estimates of $40.75 million.
Overland also reported a net loss for the quarter of $9.2 million, or 72 cents a share, compared to $7 million and 52 cents per share in the year-ago quarter. On a non-GAAP basis, analysts had estimated a loss of 47 cents.
Execs on a conference call this morning blamed the revenue decrease on "softness" in Overland's OEM business, citing a 32 percent decline in sales from the prior quarter. "Sales were softer than we expected across all geographies," said Vern LoForti, the Overland CFO, adding that many users delayed their buying decisions during the last few months. "We believe that we will be able to convert many of these [opportunities] to sales so that we will have a strong fourth quarter," he explained.
A number of storage vendors, including Sun, Isilon, and LSI, have also identified users' unwillingness to part with their cash this quarter, citing a cautious spending climate and anticipation of next-generation products. (See Sun Slips on Storage, Isilon: The Honeymoon's Over, and LSI Promises Better.)