UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT 

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

June 30, 2003
Date of Report (Date of earliest event reported)

QUANTUM CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation)

 

 

408-944-4000
(Registrant’s telephone number, including area code)

 

ITEM 5. OTHER EVENTS

On June 30, 2003, Quantum Corporation issued a press release, a copy of which is attached as Exhibit 99.1 hereto and incorporated herein by reference.

 

 

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.

 

 

Dated:    June 30, 2003

EXHIBIT INDEX

Exhibit 99.1   Press release, dated June 30, 2003.

 

 

 

Exhibit 99.1-Press release, dated June 30, 2003.

 

QUANTUM FILES FISCAL YEAR 2003 ANNUAL REPORT ON FORM 10-k

Milpitas, Calif., June 30, 2003– Quantum Corp. (NYSE:DSS), a leading provider of data protection systems, today announced the filing of its annual report on Form 10-K for fiscal year 2003, ended March 31, 2003. 

Included in the filing is a fiscal fourth quarter (FQ4) adjustment that increases cost of revenue by $1.8 million.  This adjustment relates to corrections of items from prior periods and is primarily associated with the accounting for product and service inventories.  These corrections, which were not material to the prior periods, were identified during the planning for a system conversion in one of the company’s business groups. 

As a result of the adjustment, Quantum’s FQ4 net loss, on a GAAP basis, was $6 million, or 4 cents per share.  Non-GAAP net income was $4 million, or 2 cents per share, diluted.  On a full fiscal year basis, the GAAP net loss was $264 million, or $1.63 per share, and the non-GAAP net loss was $11 million, or 7 cents per share.  For a reconciliation of GAAP to non-GAAP results, please see the table entitled “GAAP to Non-GAAP Reconciliation of Consolidated Statements of Operations” below. 

The entire 10-K filing can be accessed via the company’s website at http://investors.quantum.com/.

Use of Non-GAAP Financial Measures

The non-GAAP financial measures used in this press release exclude the impact of acquisition-related intangible asset amortization, special charges, goodwill write-down and adjustment, transitional or discontinued activities and operations, certain non-operating gains and losses, and related adjustments to provision for income taxes on Quantum’s operating results.  These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies.  Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  Quantum’s management refers to these non-GAAP financial measures in making operating decisions because they provide meaningful supplemental information regarding the company’s operational performance.  For instance, management believes these non-GAAP financial measures are helpful in assessing Quantum’s core operating results.  In addition, these non-GAAP financial measures facilitate management's internal comparisons to Quantum’s historical operating results and comparisons to competitors' operating results.  Quantum includes these non-GAAP financial measures in its earnings announcement because the company believes they are useful to investors in allowing for greater transparency related to supplemental information used by management in its financial and operational decision-making.  In addition, Quantum has historically reported similar non-GAAP financial measures to its investors and believes that the inclusion of comparative numbers provides consistency in the company’s financial reporting at this time.  Investors are encouraged to review the reconciliation of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures as provided with the financial statements attached to this press release.

GAAP TO NON-GAAP RECONCILIATION OF CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

Notes
(A)	Amortization of intangible assets
(B)	Tax benefit on certain non-GAAP adjustments
(C)	Income tax expense related to outsourced manufacturing		$	10,293
	Income tax expense related to purchase of IP technology			1,850
	Income tax expense related to all other charges			(12,615	)
			$	(472	)

 

 

About Quantum

Quantum Corp. (NYSE:DSS), founded in 1980, is a global leader in data protection, meeting the needs of business customers with enterprise-wide storage solutions and services.  Quantum offers a wide range of tape drive and tape automation products for managing, storing and transferring data, and its DLTtape™ technology is the standard for tape backup, archiving, and recovery.  Over the past year, Quantum has also been one of the pioneers in the emerging market of disk-based backup, offering a solution that emulates a tape library and is optimized for data protection.  Quantum sales for the fiscal year ending March 31, 2003, were $871 million. Quantum Corp., 501 Sycamore Dr., Milpitas, CA 95035, (408) 944-4000, www.quantum.com.

 

NOTE: Quantum and the Quantum logo are trademarks of Quantum Corporation registered in the United States and other countries. DLTtape is a trademark of Quantum Corporation. All other trademarks are the property of their respective owners.

 

QUANTUM CORPORATION
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)

		Press release: May 19, 2003									Adjustments		Notes			Adjusted Amounts
		March 31, 2003														March 31, 2003
		Three   Months   Ended				Twelve   Months   Ended										Three Months   Ended				Twelve   Months   Ended
Product revenue		$	187,031			$	684,156									$	187,031			$	684,156
Royalty revenue			48,105				186,653										48,105				186,653
Total revenue			235,136				870,809										235,136				870,809
Cost of revenue			157,544				593,130			$	1,817		(A)				159,361				594,947
Gross margin			77,592				277,679				(1,817	)					75,775				275,862
Operating expenses:
Research and development			28,975				111,625										28,975				111,625
Sales and marketing			21,605				95,915										21,605				95,915
General and administrative			15,742				70,762										15,742				70,762
			66,322				278,302				--						66,322				278,302
Income (loss) from operations			11,270				(623	)			(1,817	)					9,453				(2,440	)
Interest income and other, net			2,577				11,481										2,577				11,481
Interest expense			(6,169	)			(24,419	)									(6,169	)			(24,419	)
Income (loss) before income taxes			7,678				(13,561	)			(1,817	)					5,861				(15,378	)
Income tax provision (benefit)			2,304				(4,068	)			(545	)	(B)				1,759				(4,613	)
Net income (loss)		$	5,374			$	(9,493	)		$	(1,272	)				$	4,102			$	(10,765	)
Net income (loss) per share
Basic		$	0.03			$	(0.06	)								$	0.02			$	(0.07	)
Diluted		$	0.03			$	(0.06	)								$	0.02			$	(0.07	)
Weighted average common and common equivalent shares
Basic			171,550				162,208										171,550				162,208
Diluted			174,970				162,208										174,970				162,208

Notes
(1)	Additional cost of revenue due mainly to inventory adjustments related to prior periods.
(2)	Tax effect of above adjustments.

 

QUANTUM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

 

Notes
(A)	Additional cost of revenue due mainly to inventory adjustments related to prior periods.
(B)	Tax effect of above adjustments.

QUANTUM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

		Press Release: May 19, 2003			Adjustments				Notes		Adjusted Amounts
		March 31, 2003									March 31, 2003
Assets
Current assets:
Cash and cash equivalents		$	222,239		$	(505	)		(A)		$	221,734
Short-term investments			97,055									97,055
Accounts receivable, net of allowance for doubtful accounts			133,760									133,760
Inventories			69,317			(3,012	)		(A)			66,305
Deferred income taxes			45,825			545			(B)			46,370
Service inventories			47,404			1,700			(A)			49,104
Other current assets			26,080									26,080
Total current assets			641,680			(1,272	)					640,408
Long-term assets:
Property and equipment, net			54,522									54,522
Goodwill, net			40,916									40,916
Intangible assets, net			79,444									79,444
Other assets			10,606									10,606
Receivable from Maxtor Corporation			95,833									95,833
Total long-term assets			281,321			–						281,321
		$	923,001		$	(1,272	)				$	921,729
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	104,495								$	104,495
Accrued warranty			49,582									49,582
Other accrued liabilities			99,899									99,899
Total current liabilities			253,976									253,976
Long-term liabilities:
Deferred income taxes			25,091									25,091
Convertible subordinated debt			287,500									287,500
Stockholders’ equity			356,434			(1,272	)		(C)			355,162
		$	923,001		$	(1,272	)				$	921,729

Notes
(A)	Adjustments related to prior periods.
(B)	Tax effect of above adjustments.
(C)	Net effect of adjustments on statements of operations.