UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
___________________
FORM 8-K
___________________
CURRENT
REPORT
Pursuant to Section 13 or
15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of
earliest event reported): July
16, 2015
___________________
Quantum
Corporation
(Exact name of registrant
as specified in its charter)
___________________
Delaware
(State or other
jurisdiction of incorporation)
1-13449 |
94-2665054 |
(Commission File No.) |
(IRS Employer Identification
No.) |
224 Airport
Parkway, San Jose, CA 95110
(Address of principal
executive offices and zip code)
Registrants telephone
number, including area code: (408) 944-4000
___________________
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
☐ |
|
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425) |
☐ |
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12) |
☐ |
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of
Financial Operations and Financial Condition
On July 16, 2015, Quantum
Corporation issued a press release announcing preliminary earnings for its first
quarter of fiscal 2016, a copy of which is attached as Exhibit 99.1 hereto and
incorporated by reference.
This information shall not be
deemed filed for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the Exchange Act), or incorporated by reference in any filing
under the Securities Act of 1933, as amended, or the Exchange Act, except as
shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial
Statements and Exhibits
(d) Exhibits
99.1 |
|
Press Release, dated
July 16, 2015. |
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly
authorized.
|
QUANTUM CORPORATION |
|
|
|
|
|
/s/ SHAWN D.
HALL |
|
Shawn D. Hall |
|
Senior Vice President, General Counsel and |
|
Secretary |
Dated: July 16, 2015
EXHIBIT INDEX
Exhibit |
|
Description |
99.1 |
|
Press Release, dated July 16, 2015. |
Exhibit 99.1
|
News
Release |
Contact: Brad Cohen Public
Relations Quantum Corp. (408)
944-4044 brad.cohen@quantum.com
Brinlea Johnson or
Allise Furlani Investor Relations The Blueshirt Group (212)
331-8424 or (212) 331-8433 brinlea@blueshirtgroup.com or
allise@blueshirtgroup.com |
For
Release: July 16, 2015 6:00 a.m.
PDT |
Quantum Corporation
Announces Preliminary Fiscal First Quarter Results
SAN JOSE, Calif.
July 16, 2015 Quantum Corp. (NYSE:
QTM) today announced preliminary
results for the fiscal first quarter 2016
ended June 30, 2015 (unless otherwise noted, all comparisons are relative to the fiscal first quarter 2015). The companys total revenue was approximately $111 million, down from $128 million a year earlier and below the companys May guidance of $125 million to $130
million. Quantums scale-out storage and related service revenue grew year-over-year by approximately $10 million, or 54 percent, and royalty revenue increased approximately $1 million. However, this growth was offset by product and related service revenue declines of approximately $15 million in branded tape automation, $7 million in branded devices and media and $6 million in OEM tape sales. DXi® product and related
service revenue was roughly flat year-over-year. Quantum believes the lower-than-expected total revenue was largely due to overall weakness in the general-purpose storage market, as also indicated by other companies announcements over the last two weeks.
The lower revenue also
impacted Quantums bottom line, resulting in a GAAP net loss of approximately $11 million for the quarter and a non-GAAP
net loss of approximately $7
million.
-more-
Were pleased with our
continued growth and momentum in scale-out storage but found the overall storage
environment particularly challenging toward the end of the quarter, said Jon
Gacek, president and CEO of Quantum. Most notably, the market for data
protection in IT data centers was especially soft, as customers seemed to pull
back on planned purchases and pricing for low-margin devices and media was under
significant pressure. Based on discussions weve had with partners and
announcements by other storage providers, we believe the pull back in planned
purchases was consistent with a broader industry trend. At the same time, we see
significant opportunities for upside in scale-out storage that could more than
offset weakness elsewhere, and we remain focused on meeting our annual financial
targets announced in May. We will provide more detailed financial results for
the fiscal first quarter and further discuss the market environment and our
outlook in our earnings announcement at the end of the month.
Earnings
Conference Call and Audio Webcast Notification
Quantum will issue a news release on its
fiscal first quarter financial results on Thursday, July 30, 2015, after the
close of the market. The company will also hold a conference call and live audio
webcast to discuss these results that same day at 2:00 p.m. PDT. Press and
industry analysts are invited to attend in listen-only
mode.
Dial-in number:
719-325-2420 (U.S. and International); Access Code 7608393
Replay number:
719-457-0820 (U.S. and International); Access Code 7608393
Replay expiration:
Tuesday, Aug. 4, 2015, at 5:00 p.m. PDT
Webcast site:
www.quantum.com/investors
About
Quantum
Quantum is a leading expert in scale-out storage, archive and data
protection, providing solutions for capturing, sharing and preserving digital
assets over the entire data lifecycle. From small businesses to major
enterprises, more than 100,000 customers have trusted Quantum to address their
most demanding data workflow challenges. With Quantum, customers can Be Certain
they have the end-to-end storage foundation to maximize the value of their data
by making it accessible whenever and wherever needed, retaining it indefinitely
and reducing total cost and complexity. See how at
www.quantum.com/customerstories.
###
-more-
Quantum, the Quantum logo, Be
Certain and DXi are either registered trademarks or trademarks of Quantum
Corporation and its affiliates in the United States and/or other countries. All
other trademarks are the property of their respective owners.
Safe Harbor Statement: This
press release contains forward-looking statements. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements. Specifically, but without limitation, statements
relating to expected Q1 FY 2016 financial results, the reasons for the
lower-than-expected results, opportunities in scale-out storage and anticipated
future disclosure and further discussion are forward-looking statements within
the meaning of the Safe Harbor. All forward-looking statements in this press
release are based on information available to Quantum on the date hereof. These
statements involve known and unknown risks, uncertainties and other factors that
may cause Quantums actual results to differ materially from those implied by
the forward-looking statements. More detailed information about these risk
factors are set forth in Quantums periodic filings with the Securities and
Exchange Commission, including, but not limited to, those risks and
uncertainties listed in the section entitled Risk Factors, in Quantums Annual
Report on Form 10-K filed with the Securities and Exchange Commission on June
12, 2015. Quantum expressly disclaims any obligation to update or alter its
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable law.
Use of Non-GAAP Financial
Measures
Quantum believes that the
non-GAAP financial measures disclosed above provide useful and supplemental
information to investors regarding its quarterly financial performance. Quantum
management and Board of Directors use these non-GAAP financial measures
internally to understand, manage and evaluate the companys business results and
make operating decisions. For instance, Quantum management often makes decisions
regarding staffing, future management priorities and how the company will direct
future operating expenses on the basis of non-GAAP financial measures. In
addition, compensation of our employees is based in part on the performance of
our business based on non-GAAP operating income.
The non-GAAP financial
measures used in this press release exclude the impact of the items below for
the following reasons:
Amortization of Intangible
Assets
This includes acquired intangibles such as
purchased technology and customer relationships in connection with prior
acquisitions. These expenses are not factored into managements evaluation of
potential acquisitions or Quantums performance after completion of the
acquisitions because they are not related to Quantums core operating
performance. In addition, the frequency and amount of such charges can vary
significantly based on the size and timing of acquisitions and the maturities of
the businesses being acquired. Excluding acquisition-related charges from
non-GAAP measures provides investors with a basis to compare Quantum against the
performance of other companies without the variability caused by purchase
accounting.
Share-Based Compensation
Expense
Share-based compensation expense relates primarily
to equity awards such as stock options and restricted stock units. Share-based
compensation is a non-cash expense that varies in amount from period to period
and is dependent on market forces that are often beyond Quantums control.
Management believes that non-GAAP measures adjusted for share-based compensation
provide investors with a basis to measure Quantums core performance against the
performance of other companies without the variability created by share-based
compensation as a result of the variety of equity awards used by other companies
and the varying methodologies and assumptions used.
Restructuring
Charges
Restructuring charges primarily relate to expenses
associated with changes to Quantums operating structure. Restructuring charges
are excluded from non-GAAP financial measures because they are not considered
core operating activities. Although Quantum has engaged in various restructuring
activities in the past, each has been a discrete event based on a unique set of
business objectives. Management believes that it is appropriate to exclude
restructuring charges from Quantums non-GAAP financial measures, as it enhances
the ability of investors to compare Quantums period-over-period operating
results from continuing operations.
Crossroads Patent
Litigation Costs
Crossroads patent litigation costs are expenses
incurred to defend ourselves and perform other activities related to a patent
infringement lawsuit filed by Crossroads Systems, Inc. These costs are excluded
from non-GAAP financial measures because they are not considered core operating
activities, and management believes that it is appropriate to exclude these
costs in order to provide investors the ability to compare Quantums
period-over-period operating results from continuing operations.
Non-GAAP financial measures
should not be considered as a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP. They are limited in
value because they exclude charges that have a material impact on the companys
reported financial results and, therefore, should not be relied upon as the sole
financial measures to evaluate the company. The non-GAAP financial measures are
meant to supplement, and be viewed in conjunction with, GAAP financial measures.
Investors are encouraged to review the reconciliation of the non-GAAP financial
measures to their most directly comparable GAAP financial measures as provided
in the tables accompanying this press release.
-more-
QUANTUM
CORPORATION
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
(Unaudited)
|
|
Three Months Ended
June 30, 2015 |
|
|
|
|
|
|
|
Net
Loss |
GAAP |
|
$
|
(10,755 |
) |
Non-GAAP Reconciling Items: |
|
|
|
|
Amortization of intangibles |
|
|
137 |
|
Share-based compensation |
|
|
2,653 |
|
Restructuring charges |
|
|
258 |
|
Crossroads patent litigation costs |
|
|
721 |
|
Non-GAAP |
|
$ |
(6,986 |
) |
The non-GAAP financial
information set forth in this table is not prepared in accordance with generally
accepted accounting principles and may be different from non-GAAP financial
information used by other companies.
-end-