It looks as if Overland Storage Inc. (Nasdaq: OVRL) has under-performed again this quarter.
The San Diego, Calif.-based tape library company slashed its guidance by 10 percent for the quarter that ends today, blaming the shortfall on lower OEM revenue. With that big of an impact, analysts say it's likely the OEM is Hewlett-Packard Co. (NYSE: HPQ), which contributed 59 percent of Overlands revenues last quarter. Overlands other major OEM, IBM Corp. (NYSE: IBM), accounted for only 7 percent of revenues.
Overland CEO Christopher Calisi said he now expects revenues of $54 million, down from the guidance of $60 million he gave in April. And that April figure was cut from previous guidance of $64 million after Overland failed to hit its numbers last quarter (see Overland Storage Posts Q3). Overland cut guidance for the year to $237 million, down from the $243 million forecast given in April. The company will announce its quarterly earnings on Aug. 13.
"We are disappointed with our performance for the fourth quarter, which ends today, Calisi said in a statement.
Last quarter, HP accounted for $34.7 million of Overlands $58.8 million revenue with IBM contributing $3.9 million. Analyst Thomas Curlin of RBC Capital Markets wrote in a research note today that he believes HPs contribution could be 20 percent below Overlands previous forecast. Curlin wrote that HPs server and storage business remains tepid due to product transition, increased competition and a realignment of the sales organization, as well as supply chain problems.