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Overland Looks for Rebound

It was obvious that Overland Storage was in for a rough year after it lost its major OEM tape library customer last August. Today, Overland disclosed just how rough it was when it reported a $14.6 million loss.

Still, CEO Chris Calisi predicts it can return to profitability this year by moving hard into the primary storage space.

Overland's revenue of $209 million for its fiscal year that ended June 30 was down from $235.7 million last year, and the $1.07 per share compared to net income of $5.9 million or $0.41 earnings per share (EPS) last year.

Last quarter alone Overland lost $5.1 million on $41.7 million in revenue compared with a loss of $924,000 or $0.07 per share on $55.4 million in revenue a year ago.

Hewlett-Packard pulled the plug on a tape library OEM deal last August that had provided more than half of Overland's revenue. (See Overland Loses HP OEM Deal.) The expected loss was made worse last quarter due to manufacturing problems that forced Overland to start this quarter with a $5.1 million inventory backlog.

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