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Poor Execution Hurts Quantum

Poor execution in the U.S. has hurt backup specialist Quantum, which released its third-quarter results last night, dipping below both its own and analysts' revenue estimates.

The vendor posted third-quarter revenues of $253 million, down from $302 million in the same period last year and below analyst estimates of $267.02 million. Quantum itself had estimated a quarterly revenue figure between $265 million and $275 million.

On the upside, the vendor's losses narrowed. On a GAAP basis, Quantum reported a net loss of $2 million, or 1 cent per share, compared to a loss of $10 million and 5 cents per share in the year-ago quarter. Excluding stock-based compensation charges and amortization of intangibles, Quantum's earnings would have been 7 cents per share, in line with analyst estimates.

Quantum also doubled its GAAP operating income to $9 million during the quarter, its highest level in three years, and the vendor paid down $20 million of its debt related to the 2006 ADIC acquisition.

The company has now reduced its debt by 27 percent since the acquisition and had a balance of $360 million at the end of the quarter, according to execs on last night's call.

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