Quantum took a revenue hit in its Q1 results last night, although the vendors losses narrowed in what it described as a transitional quarter.
The de-dupe specialists revenues were $222 million, 10 percent down on the same period last year, and below analyst estimates of $225.1 million, although CEO Rick Belluzzo put a positive spin on the results.
It was a transitional quarter in that we launched the [latest] DXi7500 disk device at the end of the quarter -- there is a lot of really good progress in [Quantum] becoming a systems company, he told Byte & Switch, explaining that tape sales were largely to blame for the revenue shortfall. We were a bit short in the U.S. for tape automation -- that was a problem that we have had for a few quarters.
On a GAAP basis, Quantum reported a net loss of $14 million, or a loss of 7 cents per share, compared to a net loss of $22.5 million and a loss of 11 cents per share in the first quarter of 2007. Without $11 million in intangibles costs and $3 million in stock-based compensation charges, the vendor would have reported break-even per share, although this would have still been below analysts 1 cent EPS estimate.
The Quantum CEO admitted that the vendor is still in the throes of its corporate makeover, shifting its focus from selling components to OEMs to branded systems sold via VARs and the likes of EMC.