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Overland Storage Reports Brisk Storage Sales

Overland Storage reported record revenue and earnings for its second fiscal quarter of 2004--and has the channel to thank for it.

Revenue for the quarter was $67.8 million, up 39 percent from the $48.6 million reported for the same quarter last year. Income more than doubled to $3.4 million, or 24 cents per share, compared to $1.5 million a year ago.

Christopher Calisi, president and CEO, said that while the storage market in general is doing well, the company's sales of branded storage products, including tape automation and backup appliance systems, did exceptionally well.

Calisi said 67 percent of Overland's revenue came from OEM sales compared to 33 percent from solution providers. However, the OEM portion of sales was unusually high for the quarter because of surprisingly strong business from HP, the company's largest single customer, he said.

Solution provider sales were $21 million for the quarter, up 34 percent over the same period last year and up 12 percent on a quarter-to-quarter basis, Calisi said. The company has no direct sales. "A lot of resellers are switching to lead with Overland Storage," he said. "This is due to their comfort level with our quality and reliability. Also, we are the only leading vendor to focus on the channel."

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