SAN JOSE, Calif. -- Quantum Corp. (NYSE: QTM - News), the leading global specialist in backup, recovery and archive, today announced that revenue for its fiscal first quarter (FQ1'08), ended June 30, 2007, was $246 million. This represented a 32 percent increase over the same quarter last year (FQ1'07), largely resulting from Quantum's acquisition of Advanced Digital Information Corp. (ADIC) in August 2006.
The company reported a GAAP net loss of $23 million for FQ1'08, or 11 cents per share, compared to a 2-cent loss in FQ1'07. The $23 million net loss in FQ1'08 and year-over-year earnings per share decline reflected a number of major expense items totaling $28 million, much of which was also driven by the ADIC acquisition: $13 million in amortization of intangibles, $12 million in restructuring and other transition expenses related to the acquisition, and $3 million in stock-based compensation charges. The net impact of these items reduced earnings per share on a diluted basis by approximately 14 cents.
One of the highlights of the June quarter was Quantum's gross margin results. The company's GAAP gross margin rate was 31.8 percent, a significant increase over the 27.9 percent rate in the same quarter last year and its best performance in three years. Operating expenses were $92 million, up from $55 million in FQ1'07 primarily as a result of the ADIC acquisition.
"It has been just under a year since we completed the ADIC acquisition, and we are very pleased with what we have been able to achieve as a combined company in this relatively short time," said Rick Belluzzo, chairman and CEO of Quantum. "As in previous years, the June quarter was challenging from a revenue standpoint, but our operating income as a percentage of revenue over the last three quarters has been the best we've achieved in more than five years, when amortization, stock-based compensation and acquisition-related expenses are excluded. In addition, we've completed the vast majority of the integration and strategic actions that will now allow us to focus on growing the business by taking advantage of our expanded opportunities."