As part of his plan to rescue Overland Storage, interim CEO Scott McClendon is looking to rekindle the firm's tape library relationship with Hewlett-Packard.
Overland's directors removed Chris Calisi as CEO in November after a 17-month period that began when Overland lost its tape OEM deal with HP, and grew worse. (See Overland Loses HP OEM Deal and Overland's Woes Widen.) Chairman McClendon returned as CEO, a post he held from 1991-2001, after spending 32 years at HP.
"My first goal is to stabilize the company," McClendon said today during the company's earnings report call.
Part of that stabilization plan is to cozy up to HP, which replaced Overland as an OEM partner for its midrange tape libraries with Quantum but continues to resell Overland NEO libraries. Overland execs say their revenue from HP hasn't dropped as much as expected, and they hope to get a bump when the next generation of LTO tape drives -- LTO-4 -- roll out this year. (See LTO Hits 1.5M Drives.)
"I'm intent on strengthening our HP relationship," McClendon said. "I believe we have the opportunity in the face of the impeding launch of the LTO-4 tape drive to stabilize revenue stream from HP, and even foster new business. I'm trying to re-establish it as total relationship, and not just a vendor-supplier relationship."
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