Exhibit 99.1
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Quantum Reports Second Quarter Fiscal 2022 Results

Revenue Increases 5% Sequentially to $93.2 Million
Guides For 12% Sequential Growth in Third Fiscal Quarter

SAN JOSE, Calif., November 3, 2021 -- Quantum Corporation (NASDAQ: QMCO) announced today financial results for its fiscal second quarter results ended September 30, 2021.

Second Quarter Fiscal 2022 Financial Summary and Recent Highlights

•Revenue grew 9% year-over-year to $93.2 million, exceeding the high-end of the guidance range
•GAAP net loss was $9.3 million, or ($0.16) per share; adjusted non-GAAP net income was $0.1 million, or $0.00 per diluted share
•Ended the quarter with $50.0 million in backlog, compared to $30.0 million in the prior quarter
•Software and recurring licensing customers grew 30% sequentially, while bookings were up greater than 70%
•Adjusted EBITDA was $5.3 million, exceeding the high-end of the guidance range
•Acquired EnCloudEn, a hyperconverged software startup, expanding presence in video surveillance and driving shift towards recurring software revenue model

Jamie Lerner, Chairman and CEO, Quantum commented, "Our second quarter results exceeded the high-end of our guidance range across all key metrics, supported by strong customer demand while increasing backlog to over $50 million. Orders from our hyperscale customers grew sequentially for the third consecutive quarter, and while not all orders will ship in the subsequent quarter, visibility into revenue contribution from this growing base has improved dramatically relative to a year ago. The ongoing industry supply constraints improved during the quarter, but still restricted our ability to meet all end customer demand. We anticipate supply chain constraints will see further improvement in our third fiscal quarter, which should allow the company to see a sequential reduction in current backlog levels.

“Also, during the quarter, software and recurring licensing revenue increased significantly, with our CatDV software delivering a second consecutive quarter of increased bookings, driven by strong adoption across sports, entertainment and enterprise markets. Our recurring software and services customer base continued to accelerate with bookings 2 times greater than customers in the quarter, demonstrating a growing backlog of higher margin recurring revenue. Additionally, the integration of Pivot3 has progressed well, and we have begun to cross-sell these video surveillance software solutions to our current customer base. Further, the recent launch of our ActiveScale Cold Storage, which combines tape architecture and storage-as-a -service software, offers hyperscale-level archive storage options for the enterprise and cloud providers, broadening the company’s available market and cross-selling opportunities.”

Mr. Lerner concluded by stating, “Our team’s continued execution during these ongoing supply chain constraints has been exceptional. The underlying fundamentals of our business, as well as the overall demand environment, are the strongest they have been since I joined the company. We are building an organization that over the long-term can support significantly higher levels of revenue, while shifting to a higher mix of recurring revenue. We look forward to sharing more details about our transition to a recurring revenue model at our upcoming virtual Analyst Day on November 9th.”



Second Quarter Fiscal 2022 vs. Prior Quarter
Revenue for the second quarter fiscal 2022 was $93.2 million, representing an increase of 4.6% sequentially from $89.1 million last quarter. Gross profit in the second quarter of fiscal 2022 was $38.4 million, or 41% of revenue, compared to $37.3 million, or 42% of revenue, in the prior quarter.

Total operating expenses in the second quarter of fiscal 2022 were $39.3 million, or 42% of revenue, compared to $37.3 million, or 42% of revenue, in the prior quarter. Selling, general and administrative expenses were $26.9 million in the quarter, compared to $25.8 million in the first fiscal quarter 2022. Research and development expenses were $12.4 million in the second quarter of fiscal 2022, compared to $11.3 million last quarter.

GAAP net loss in the second quarter of fiscal 2022 was $9.3 million, or ($0.16) per share, which included a debt extinguishment charge of $15 million partially offset by a gain of $10 million for the forgiveness on the PPP loan, compared to a net loss of $4.2 million, or ($0.07) per share, in the first fiscal quarter 2022. Excluding stock compensation, restructuring charges and other non-recurring costs, non-GAAP adjusted net income in the second fiscal quarter of 2022 was $0.1 million, or $0.00 per diluted share, compared to adjusted net income of $0.1 million, or $0.00 per diluted share, last quarter.

Adjusted EBITDA in the Second quarter of fiscal 2022 was $5.3 million, compared to $5.4 million in the prior quarter.

For a full reconciliation of GAAP to non-GAAP financial results and additional cautionary language about the use of non-GAAP financial measures, please see the financial reconciliation tables below.

Balance Sheet and Liquidity
•Cash and cash equivalents including restricted cash was $23.2 million as of September 30, 2021, compared to $24.6 million as of June 30, 2021.
•Outstanding long-term debt as of September 30, 2021, excluding the $10 million drawn on the revolver, was $91.4 million. This compares to $81.3 million of outstanding debt as of June 30, 2021.
•Total interest expense was $3.1 million, compared to $3.9 million for the three months ended June 30, 2021.

Outlook
Given the expected improvements in the supply chain for the third fiscal quarter of 2022, the company expects the following guidance range:

•Revenues of $104 million, plus or minus $5 million
•Non-GAAP adjusted net income of breakeven, plus or minus $1 million
•Non-GAAP adjusted net income per share of $0.00, plus or minus $0.02
•Adjusted EBITDA of $5 million, plus or minus $1 million

For fiscal year 2022, the company continues to expect to achieve the following revenue guidance range:
•Revenues of $380 to $420 million, determined by the timing of supply chain improvements


Conference Call and Webcast
Management will host a live conference call today, November 3, 2021, at 5:00 p.m. ET (2:00 p.m. PT) to discuss these results. The conference call will be accessible by dialing 866-424-3436 (U.S. Toll-Free) or +1-201-689-8058 (International) and entering pass code 13724393. This conference call will be broadcast live over the Internet with a slide presentation and can be accessed by all interested parties on the investor relations section of the Company's website at http://investors.quantum.com under the events and presentations tab.

A telephone replay of the conference call will be available approximately two hours after the conference call and will be available through November 10, 2021. To access the replay dial 1-877-660-6853 and enter the pass code 13724393 at the prompt. International callers should dial +1-201-612-7415 and enter the same passcode. Following


the conclusion of the live call, a replay of the webcast will be available on the Company's website for at least 90 days.

About Quantum
Quantum technology, software, and services provide the solutions that today's organizations need to make video and other unstructured data smarter – so their data works for them and not the other way around. With over 40 years of innovation, Quantum's end-to-end platform is uniquely equipped to orchestrate, protect, and enrich data across its lifecycle, providing enhanced intelligence and actionable insights. Leading organizations in cloud services, entertainment, government, research, education, transportation, and enterprise IT trust Quantum to bring their data to life, because data makes life better, safer, and smarter. Quantum is listed on Nasdaq (QMCO) and the Russell 2000® Index. For more information visit www.quantum.com.

Quantum and the Quantum logo are registered 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.

Forward-Looking Information
The information provided in this press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (“Exchange Act”). These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting our business. Such forward-looking statements include, in particular, statements related to future projections of our financial results; that our newly introduced products will drive a growing contribution of recurring revenue and deliver higher margins, while also increasing the total addressable market of our solutions; our expectations to continue our operational execution and to gain incremental traction across our market verticals, including with our leading hyperscale and global web scale customers, statements about our backlog and the implication that this backlog will translate into future revenue; the trend in our underlying business remaining robust; continued progress in our business transformation; the anticipated impact and benefits of our acquisition of Pivot3’s video surveillance portfolio and assets; the anticipated impact and benefits of the refinancing of our outstanding debt; and the Company’s position for long-term sustainable growth and profitability.

These forward-looking statements may be identified by the use of terms and phrases such as “anticipates”, “believes”, “can”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “plans”, “projects”, “targets”, “will”, and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters and other statements regarding matters that are not historical are forward-looking statements. Investors are cautioned that these forward-looking statements relate to future events or our future performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements.

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: risks related to the need to address the many challenges facing our business; the potential impact of the COVID-19 pandemic on our business, including potential disruptions to our supply chain, employees, operations, sales and overall market conditions; the competitive pressures we face; risks associated with executing our strategy; the distribution of our products and the delivery of our services effectively; our ability to integrate the business, products, employees and other aspects of Pivot3’s video surveillance business; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; estimates and assumptions related to the cost (including any possible disruption of our business) and the anticipated benefits of the transformation and restructuring plans; the outcome of any claims and disputes; and other risks that are described herein, including but not limited to the items discussed in “Risk Factors” in our filings with the Securities and Exchange Commission, including our Form 10-K filed with the Securities and Exchange Committee on May 26, 2021 and our Form 10-Q filed on November 3, 2021. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law or regulation.

Investor Relations Contacts:
Shelton Group
Leanne K. Sievers | Jeffrey Schreiner


P: 949-224-3874 | 512-243-8976 E: sheltonir@sheltongroup.com




QUANTUM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts, unaudited)

September 30, 2021March 31, 2021
Assets
Current assets:
Cash and cash equivalents$22,757 $27,430 
Restricted cash450 707 
Accounts receivable, net of allowance for doubtful accounts of $350 and $40663,098 73,102 
Manufacturing inventories28,848 24,467 
Service parts inventories23,564 23,421 
Other current assets11,451 6,939 
Total current assets150,168 156,066 
Property and equipment, net 12,295 10,051 
Intangible assets, net 9,132 5,037 
Goodwill 10,262 3,466 
Restricted cash— 5,000 
Right-of-use assets, net7,917 9,383 
Other long-term assets8,684 5,921 
Total assets$198,458 $194,924 
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable$36,991 $35,245 
Deferred revenue78,105 84,027 
Accrued restructuring charges20 580 
Long-term debt, current portion3,125 1,850 
Accrued compensation15,435 19,214 
Other accrued liabilities18,750 18,174 
Total current liabilities152,426 159,090 
Deferred revenue40,766 36,126 
Long-term debt, net of current portion101,368 90,890 
Operating lease liabilities6,818 8,005 
Other long-term liabilities13,073 13,058 
Total liabilities314,451 307,169 
Stockholders' deficit
Preferred stock, 20,000 shares authorized; no shares issued and outstanding— — 
Common stock, $0.01 par value; 125,000 shares authorized; 59,272 and 56,915 shares issued and outstanding593 570 
Additional paid-in capital636,538 626,664 
Accumulated deficit(752,029)(738,623)
Accumulated other comprehensive loss(1,095)(856)
Total stockholders’ deficit(115,993)(112,245)
Total liabilities and stockholders’ deficit$198,458 $194,924 


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


Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
Revenue:
   Product$54,655 $50,850 $106,786 $90,537 
   Service34,359 31,494 67,189 61,880 
   Royalty4,166 3,477 8,303 6,709 
      Total revenue93,180 85,821 182,278 159,126 
Cost of revenue:
   Product41,124 34,998 79,864 65,380 
   Service13,669 12,089 26,748 24,160 
      Total cost of revenue54,793 47,087 106,612 89,540 
Gross profit38,387 38,734 75,666 69,586 
Operating expenses:
   Research and development12,389 10,233 23,680 20,395 
   Sales and marketing15,462 13,153 29,414 24,723 
   General and administrative11,466 10,263 23,293 21,825 
   Restructuring charges8 1,585 274 2,637 
      Total operating expenses39,325 35,234 76,661 69,580 
Income (loss) from operations(938)3,500 (995)6 
Other income (expense), net126 (312)(71)(697)
Interest expense(3,070)(7,578)(6,956)(14,015)
Net loss before income taxes(8,842)(4,390)(12,982)(14,706)
Income tax provision411 202 424 622 
Net loss$(9,253)$(4,592)$(13,406)$(15,328)
Net loss per share - basic and diluted$(0.16)$(0.11)$(0.23)$(0.38)
Weighted average shares - basic and diluted58,567 40,286 57,852 40,097 















QUANTUM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)

Six Months Ended September 30,
20212020
Operating activities
Net loss$(13,406)$(15,328)
  Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization3,967 2,580 
Amortization of debt issuance costs1,629 3,015 
Long-term debt related costs— 167 
Provision for product and service inventories2,418 3,588 
Stock-based compensation6,273 4,550 
Paycheck Protection Program loan forgiveness(10,000)— 
Non-cash loss on debt extinguishment8,471 — 
Other(20)1,268 
Changes in assets and liabilities:
Accounts receivable, net10,024 7,568 
Manufacturing inventories(5,199)(8,858)
Service parts inventories(1,818)(4,333)
Accounts payable 1,559 1,601 
Accrued restructuring charges(560)240 
Accrued compensation(3,779)2,922 
Deferred revenue(9,032)(12,584)
Other assets and liabilities (5,789)(5,693)
Net cash used in operating activities(15,262)(19,297)
Investing activities
Purchases of property and equipment(2,396)(1,434)
Business acquisition, net of cash acquired(5,000)— 
Net cash used in investing activities(7,396)(1,434)
Financing activities
Borrowings of long-term debt, net of debt issuance costs94,961 19,400 
Repayments of long-term debt(93,051)— 
Borrowings of credit facility126,084 140,987 
Repayments of credit facility(116,084)(144,058)
Borrowings of payment protection program— 10,000 
Proceeds from issuance of common stock806 537 
Net cash provided by financing activities12,716 26,866 
Effect of exchange rate changes on cash, cash equivalents and restricted cash12 (96)
Net change in cash, cash equivalents and restricted cash (9,930)6,039 
Cash, cash equivalents, and restricted cash at beginning of period33,137 12,270 
Cash, cash equivalents, and restricted cash at end of period $23,207 $18,309 
Cash, Cash Equivalents and Restricted Cash at end of period
Cash and cash equivalents$22,757 $12,517 
Restricted cash, current450 792 
Restricted cash, long-term— 5,000 
Cash, cash equivalents and restricted cash at the end of period$23,207 $18,309 









NON-U.S. GAAP FINANCIAL MEASURES
To provide investors with additional information regarding our financial results, we have presented Adjusted EBITDA and Adjusted Net Income (Loss), non-U.S. GAAP financial measures defined below.

Adjusted EBITDA is a non-U.S. GAAP financial measure defined by us as net loss before interest expense, net, provision for income taxes, depreciation and amortization expense, stock-based compensation expense, restructuring charges, and other non-recurring expenses.

Adjusted Net Income (Loss) is a non-U.S. GAAP financial measure defined by us as net loss before restructuring charges, stock-based compensation expense, and other non-recurring (income) expenses. The Company calculates Adjusted Net Income (Loss) per Basic and Diluted share using the Company’s above-referenced definition of Adjusted Net Income (Loss).

We have provided below a reconciliation of Adjusted EBITDA and Adjusted Net Income (Loss) to Net Income (Loss), the most directly comparable U.S. GAAP financial measure. We have presented Adjusted EBITDA because it is a key measure used by our management and the board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operating plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business performance. We believe Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Basic and Diluted Share serve as appropriate measures to be used in evaluating the performance of our business and help our investors better compare our operating performance over multiple periods. Accordingly, we believe that Adjusted EBITDA and Adjusted Net Income (Loss) provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and our board of directors.

Our use of Adjusted EBITDA and Adjusted Net Income (Loss) have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are as follows:

•Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
•Adjusted EBITDA does not reflect: (1) interest and tax payments that may represent a reduction in cash available to us; (2) capital expenditures, future requirements for capital expenditures or contractual commitments; (3) changes in, or cash requirements for, working capital needs; (4) the potentially dilutive impact of stock-based compensation expense; (5) potential future costs related to our long-term debt; (6) potential future restructuring expenses; (7) potential future costs related to business acquisitions; (8) gain (loss) on debt extinguishment, or (9) and acquisition-related amortization of intangibles assets from business combinations.
•Adjusted Net Income (Loss) does not reflect: (1) potential future restructuring activities; (2) the potentially dilutive impact of stock-based compensation expense; (3) potential future costs related to our long-term debt; (4) potential future costs related to business acquisitions; (5) gain (loss) on debt extinguishment, or (6) acquisition-related amortization of intangibles assets from business combinations.

Other companies, including companies in our industry, may calculate Adjusted EBITDA, Adjusted Net Income (Loss) or similarly titled measures differently, which reduces its usefulness as a comparative measure.

Because of these and other limitations, you should consider Adjusted EBITDA and Adjusted Net Income (Loss) along with other U.S. GAAP-based financial performance measures, including various cash flow metrics and our U.S. GAAP financial results.

The following is a reconciliation of Adjusted EBITDA to the most comparable U.S. GAAP financial measure, Net Income (Loss) (dollars in thousands):


Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
Net loss$(9,253)$(4,592)$(13,406)$(15,328)
Interest expense, net3,070 7,578 6,956 14,015 
Provision for income taxes411 202 424 622 
Depreciation and amortization expense1,688 1,295 3,031 2,580 
Stock-based compensation expense3,072 2,591 6,273 4,549 
Restructuring charges8 1,585 274 2,637 
Loss on extinguishment of Senior Secured Term Loan14,960 — 14,960 — 
Gain on PPP loan forgiveness(10,000)— (10,000)— 
Amortization of acquisition related intangible assets471 — 936 — 
Acquisition-related costs811 — 950 — 
Long-term debt related costs45 203 252 1,169 
Adjusted EBITDA$5,283 $8,862 $10,650 $10,244 
 
The following is a reconciliation of Adjusted Net Income to the most comparable U.S. GAAP financial measure, Net Income (Loss) (in thousands):
Three Months Ended September 30,Six Months Ended September 30,
2021202020212020
Net loss$(9,253)$(4,592)$(13,406)$(15,328)
Stock-based compensation3,072 2,591 6,273 4,549 
Restructuring charges8 1,585 274 2,637 
Loss on extinguishment of Senior Secured Term Loan14,960 — 14,960 — 
Gain on PPP loan forgiveness(10,000)(10,000)
Amortization of acquisition related intangible assets471 — 936 — 
Acquisition-related costs811 — 950 — 
Long-term debt related costs45 203 252 1,169 
   Adjusted net income (loss)$114 $(213)$239 $(6,973)
   Adjusted Net Income per share:
      Basic$0.00 $(0.01)$0.00 $(0.17)
      Diluted$0.00 $(0.01)$0.00 $(0.17)
   Weighted average shares outstanding:
      Basic58,567 40,286 57,852 40,097 
      Diluted67,762 40,286 68,167 40,097