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Quantum Reports Q2

SAN JOSE, Calif. -- Quantum Corp. (NYSE:QTM), the leading global specialist in backup, recovery and archive, today announced that revenue for its fiscal second quarter (FQ208), ended Sept. 30, 2007, was $249 million. Although this was roughly flat with the same quarter last year , the company increased its GAAP gross margin rate from 28.2 percent to*(FQ2’07) 31.5 percent, reflecting its focus on pursuing higher margin sales over low-margin revenue opportunities.

The company reported a GAAP net loss of $20 million for FQ2’08, or 10 cents per share, compared to a $31 million net loss (16 cents per share) in FQ2’07. The $20 million net loss in FQ2’08 included a number of major expense items totaling $29 million: $13 million in costs primarily associated with refinancing the ADIC acquisition-related debt on more favorable terms; $12 million in amortization of intangibles; and $4 million in stock-based compensation charges. The net impact of these items reduced earnings per share on a diluted basis by approximately 14 cents.
In addition to Quantum’s strong gross margin performance, the company continued to reduce its operating expenses. In FQ2’08, GAAP operating expenses totaled $75 million, down from $92 million in the same quarter last year.

“Our September quarter results demonstrate the solid progress we’re making in executing on our strategic goals,” said Rick Belluzzo, chairman and CEO of Quantum. “Our operating income as a percentage of revenue was the highest it’s been in more than five years, when intangible amortization, stock-based compensation and acquisition-related expenses are excluded. In addition, we increased our disk systems and software revenue by nearly 100 percent year-over-year, with growing momentum behind our DXi-Series disk-based solutions featuring data de-duplication and replication.”

Quantum Corp.