Exhibit 99.1

Contact: For Release:
Brad Cohen May 9, 2012
Public Relations 1:05 p.m. PDT
Quantum Corp.  
(408) 944-4044  
brad.cohen@quantum.com  
 
Ellen Zimmerman  
Investor Relations  
Quantum Corp.  
(408) 944-4450  
ir@quantum.com  

QUANTUM CORPORATION REPORTS FISCAL 2012 AND FOURTH QUARTER RESULTS

Earnings Highlights:

SAN JOSE, Calif., May 9, 2012Quantum Corp. (NYSE:QTM), a proven global expert in data protection and big data management, today reported results for fiscal 2012 (FY12) and the fourth quarter (FQ4’12), ended March 31, 2012. Revenue for the year totaled $652 million, down 3 percent from fiscal 2011 (FY11), primarily due to expected decreases in OEM deduplication software revenue and royalty revenue. For FQ4’12, Quantum reported $160 million in revenue, a 3 percent decrease from the same period last year (FQ4’11). Branded revenue, which represented 81 percent of total non-royalty revenue for the year, grew 2 percent over FY11. Branded disk systems and software sales, including related service revenue, were a key contributor to this year-over-year growth, increasing 18 percent for FY12 and 28 percent for the fourth quarter.

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Quantum reported a GAAP net loss for FY12 of $9 million (4 cents per diluted share), compared to net income of $5 million in the prior year. On a non-GAAP basis, Quantum generated $30 million in net income for the year (12 cents per diluted share), down from $49 million in FY11. For FQ4’12, Quantum had a GAAP net loss of $11 million (5 cents per diluted share), compared to a net loss of $2 million in FQ4’11. Non-GAAP net income for the quarter was $1 million (less than 1 cent per diluted share), down from $10 million in the same quarter of FY11. The year-over-year declines were largely due to expected reductions in OEM deduplication software revenue and royalty revenue for FY12 and decreased tape automation systems revenue for FQ4’12. Quantum’s results also reflected a decision to increase sales and marketing spending in the fourth quarter to provide a stronger foundation for driving overall growth from the start of the new fiscal year. Finally, Quantum’s GAAP results included a $2.3 million loss in FQ4’12 related to the refinancing of its senior debt, which is expected to save the company approximately $2 million in annual interest expense and bank fees, beginning with the current fiscal year.

“The March quarter capped off a year of strong performance in key growth areas,” said Jon Gacek, president and CEO of Quantum. “In fiscal 2012, we increased overall branded revenue for the second consecutive year, with record revenues from both branded DXi® and branded StorNext® sales. It was also a year of continued technology and product innovation, as we enhanced our entire DXi product line, introduced a series of new StorNext appliances and added new features to our Scalar tape libraries. Shortly after acquiring Pancetera Software last June, we also launched Quantum vmPRO™ virtual server protection solutions and laid the groundwork for our recently announced cloud-based data protection platform.

“As we enter the new fiscal year, we are well-positioned to drive overall revenue growth, with industry-leading technology and products in some of the hottest segments of the storage market, including deduplication, virtualization and cloud services. We also are continuing to build on this leadership, as demonstrated by today’s announcement regarding a new category of solutions that uniquely address the physical storage challenges in big data management and cloud environments. All of this reflects Quantum’s transformation over the last few years and our ability to address a much broader range of customer needs in data protection and big data management with highly differentiated solutions optimized to deliver greater business value.”

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Quantum ended FY12 with $55 million in total cash and cash equivalents and $184 million in total debt. For the full year, the company generated $46 million in cash from operations and reduced its total debt by $55 million.

Outlook

For the full 2013 fiscal year, Quantum expects:
For the first quarter of fiscal 2013, the company expects:

Business Highlights

Key business highlights for the March quarter include the following:

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Conference Call and Audio Webcast Notification

Quantum will hold a conference call today, May 9, 2012, at 2:00 p.m. PDT, to discuss its fiscal fourth quarter and full year results. Press and industry analysts are invited to attend in listen-only mode. Dial-in number: (480) 629-9835 (U.S. & International). Quantum will provide a live audio webcast of the conference call beginning today, May 9, 2012, at 2:00 p.m. PDT. Site for the webcast and related information: http://www.quantum.com/investors.

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About Quantum

Quantum Corp. (NYSE:QTM) is a proven global expert in data protection and big data management that provides a unique combination of intelligent storage solutions and unmatched value for traditional, virtual and cloud environments. From small businesses to multinational enterprises, more than 50,000 customers trust Quantum to help cost effectively manage data growth and extract the full value from their digital assets. The company’s offerings include: DXi®-Series disk-based deduplication and replication systems for fast backup and restore, Quantum vmPRO™ solutions for protecting virtual machine data, Scalar® tape automation products for disaster recovery and long-term data retention, and StorNext® big data management software and appliances for high-performance file sharing and archiving. Quantum Corp., 1650 Technology Drive, Suite 800, San Jose, CA 95110, (408) 944-4000, www.quantum.com.




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Quantum, the Quantum logo, DXi, Scalar, StorNext and vmPRO 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 under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, without limitation, our statement regarding driving revenue growth, our statements regarding new product offerings and all of our statements under the “Outlook” section 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 Quantum’s actual results to differ materially from those implied by the forward-looking statement. More detailed information about these risk factors, and additional risk factors, are set forth in Quantum’s periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Item 1A. Risk Factors,” in Quantum’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 14, 2011 and Quantum’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 9, 2012. Quantum expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

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 uses these non-GAAP financial measures internally to understand, manage and evaluate the company’s 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 acquisition expenses, amortization of intangibles, loss on debt extinguishment, restructuring charges, senior debt amendment fees and share-based compensation expense for the following reasons:

Acquisition Expenses
The acquisition expenses were those expenses incurred to acquire Pancetera, Inc. and are not part of Quantum’s future core operations.

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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 management’s evaluation of potential acquisitions or Quantum’s performance after completion of the acquisitions because they are not related to Quantum’s 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.

Loss on Debt Extinguishment
The loss on debt extinguishment relates to specific debt refinancing actions and is not part of Quantum’s future core operations.

Restructuring Charges
Restructuring charges primarily relate to expenses associated with changes to Quantum’s 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 Quantum’s non-GAAP financial measures, as it enhances the ability of investors to compare Quantum’s period-over-period operating results from continuing operations.

Senior Debt Amendment Fees
The senior debt amendment fees relate to a specific amendment fee and are not part of Quantum’s future core operations.

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 Quantum’s control. As a result, management excludes this item from Quantum’s internal operating forecasts and models. Management believes that non-GAAP measures adjusted for share-based compensation provide investors with a basis to measure Quantum’s 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.

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 company’s 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.

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

Three Months Ended Twelve Months Ended
March 31, 2012       March 31, 2011       March 31, 2012       March 31, 2011
Revenue:
       Product $           109,865 $           112,902 $           451,340 $           456,903
       Service 36,408 37,365 144,364 151,095
       Royalty 14,031 14,830 56,666 64,272
              Total revenue 160,304 165,097 652,370 672,270
Cost of revenue:
       Product 72,332 73,217 290,376 294,375
       Service 22,727 22,716 88,459 94,311
       Restructuring charges (benefit) related to cost of
              revenue 602 (300 ) 602
              Total cost of revenue 95,059 96,535 378,535 389,288
                     Gross margin 65,245 68,562 273,835 282,982
 
Operating expenses:
              Research and development 19,153 18,518 74,365 73,008
              Sales and marketing 35,948 31,795 130,938 122,768
              General and administrative 15,919 14,860 62,910 59,460
              Restructuring charges 1,231 3,031 1,930 3,042
                     Total operating expenses 72,251 68,204 270,143 258,278
 
Gain on sale of patents 1,500
                     Income (loss) from operations (7,006 ) 358 5,192 24,704
 
Other income and expense 304 1,175 (118 ) 1,199
Interest expense (2,575 ) (3,286 ) (10,686 ) (20,163 )
Loss on debt extinguishment (2,310 ) (2,310 ) (1,186 )
                     Income (loss) before income taxes (11,587 ) (1,753 ) (7,922 ) 4,554
Income tax provision (benefit) (529 ) (101 ) 887 13
                     Net income (loss) $ (11,058 ) $ (1,652 ) $ (8,809 ) $ 4,541
Basic and diluted net income (loss) per share $ (0.05 ) $ (0.01 ) $ (0.04 ) $ 0.02
 
Weighted average common and common equivalent shares:
                            Basic 235,429 226,496 232,599 220,888
                            Diluted 235,429 226,496 232,599 229,738
 
Included in the above Statements of Operations:
       Amortization of intangibles:
              Cost of revenue $ 1,435 $ 2,575 $ 7,583 $ 14,662
              Research and development 200
              Sales and marketing 3,256 3,331 13,128 13,419
              General and administrative 25 32 100
4,691 5,931 20,743 28,381
 
       Share-based compensation:
              Cost of revenue 685 405 2,203 1,768
              Research and development 784 553 3,250 2,486
              Sales and marketing 989 730 4,048 3,121
              General and administrative 1,033 683 4,236 3,046
3,491 2,371 13,737 10,421
 
       Senior debt amendment fees 861
 
       Acquisition expenses 325

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QUANTUM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

      March 31, 2012       March 31, 2011*
Assets
Current assets:
       Cash and cash equivalents $              51,261 $              76,010
       Restricted cash 4,230 1,863
       Accounts receivable 110,840 114,969
       Manufacturing inventories 61,111 48,131
       Service parts inventories 39,050 45,036
       Deferred income taxes 5,295 6,271
       Other current assets 9,434 11,274
              Total current assets 281,221 303,554
Long-term assets:
       Property and equipment 25,440 24,980
       Intangible assets and goodwill 81,725 91,481
       Other long-term assets 6,962 10,950
              Total long-term assets 114,127 127,411
$ 395,348 $ 430,965
Liabilities and Stockholders’ Deficit
Current liabilities:
       Accounts payable $ 56,304 $ 52,203
       Accrued warranty 7,586 7,034
       Deferred revenue, current 93,441 87,488
       Current portion of long-term debt 1,067
       Accrued restructuring charges 1,752 4,028
       Accrued compensation 31,971 31,249
       Income taxes payable 1,133 1,172
       Other accrued liabilities 17,866 21,418
              Total current liabilities 210,053 205,659
Long-term liabilities:
       Deferred revenue, long-term 36,430 34,281
       Deferred income taxes 4,564 6,820
       Long-term debt 49,495 103,267
       Convertible subordinated debt 135,000 135,000
       Other long-term liabilities 6,486 7,049
              Total long-term liabilities 231,975 286,417
Stockholders’ deficit (46,680 ) (61,111 )
$ 395,348 $ 430,965
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*       Derived from the March 31, 2011 audited Consolidated Financial Statements.

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QUANTUM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Twelve Months Ended
March 31, 2012       March 31, 2011
Cash flows from operating activities:
       Net income (loss) $            (8,809 ) $            4,541
       Adjustments to reconcile net income (loss) to net cash provided by operating
       activities:
              Depreciation 11,774 11,657
              Amortization 23,101 30,304
              Service parts lower of cost or market adjustment 10,736 13,796
              Loss on debt extinguishment 2,310 1,186
              Deferred income taxes (1,280 ) (184 )
              Share-based compensation 13,737 10,421
              Other non-cash writeoffs 302
              Changes in assets and liabilities, net of effect of acquisition:
                     Accounts receivable 4,134 (14,935 )
                     Manufacturing inventories (21,373 ) (1,460 )
                     Service parts inventories 3,642 1,955
                     Accounts payable 4,107 (1,466 )
                     Accrued warranty 552 1,150
                     Deferred revenue 8,073 (3,876 )
                     Accrued restructuring charges (2,284 ) 227
                     Accrued compensation 810 (302 )
                     Income taxes payable 12 (1,454 )
                     Other assets and liabilities (3,582 ) 465
Net cash provided by operating activities 45,660 52,327
                
Cash flows from investing activities:
       Purchases of property and equipment (11,414 ) (12,339 )
       (Increase) decrease in restricted cash (2,505 ) 32
       Return of principal from other investments 97 2,204
       Payment for business acquisition, net of cash acquired (8,152 )
Net cash used in investing activities (21,974 ) (10,103 )
 
Cash flows from financing activities:
       Borrowings of long-term debt, net 48,535
       Repayments of long-term debt (104,334 ) (203,449 )
       Borrowings of convertible subordinated debt, net 130,022
       Repayments of convertible subordinated debt (22,099 )
       Payment of taxes due upon vesting of restricted stock (2,944 ) (2,307 )
       Proceeds from issuance of common stock 10,390 16,547
Net cash used in financing activities (48,353 ) (81,286 )
 
Effect of exchange rate changes on cash and cash equivalents (82 ) 125
 
       Net decrease in cash and cash equivalents (24,749 ) (38,937 )
Cash and cash equivalents at beginning of period 76,010 114,947
Cash and cash equivalents at end of period $ 51,261 $ 76,010

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QUANTUM CORPORATION
GAAP TO NON-GAAP RECONCILIATION
(In thousands, except per share amounts)
(Unaudited)

      Three Months Ended March 31, 2012
      Gross
Margin
      Gross
Margin
Rate
      Net Income
(Loss)
      Per Share
Net Income
(Loss),
Basic
      Per Share
Net Income
(Loss),
Diluted
GAAP $       65,245        40.7% $       (11,058 ) $       (0.05 ) $       (0.05 )
Non-GAAP Reconciling Items:
       Amortization of intangibles 1,435 4,691
       Share-based compensation 685 3,491
       Restructuring charges 1,231
       Loss on debt extinguishment 2,310
Non-GAAP $ 67,365 42.0% $ 665 $ 0.00 $ 0.00
 
              Computation of basic and diluted net income (loss) per share: GAAP Non-GAAP
                     Net income (loss) $ (11,058 ) $ 665
                            Interest on dilutive convertible notes
                     Income (loss) for purposes of computing income (loss) per
                     diluted share $ (11,058 ) $ 665
 
              Weighted average shares:
                     Basic 235,429 235,429
                            Dilutive shares from stock plans 6,321
                            Dilutive shares from convertible notes
 
                     Diluted 235,429 241,750
  
Twelve Months Ended March 31, 2012
      Gross
Margin
      Gross
Margin
Rate
      Net Income
(Loss)
      Per Share
Net Income
(Loss),
Basic
      Per Share
Net Income
(Loss),
Diluted
GAAP $ 273,835 42.0% $ (8,809 ) $ (0.04 ) $ (0.04 )
Non-GAAP Reconciling Items:
       Amortization of intangibles 7,583 20,743
       Share-based compensation 2,203 13,737
       Restructuring charges (benefit) (300 ) 1,630
       Loss on debt extinguishment 2,310
       Acquisition expenses 325
Non-GAAP $ 283,321 43.4% $ 29,936 $ 0.13 $ 0.12
 
              Computation of basic and diluted net income (loss) per share: GAAP Non-GAAP
                     Net income (loss) $ (8,809 ) $ 29,936
                            Interest on dilutive convertible notes
                     Income (loss) for purposes of computing income (loss) per
                     diluted share $ (8,809 ) $ 29,936
 
              Weighted average shares:
                     Basic 232,599 232,599
                            Dilutive shares from stock plans 7,028
                            Dilutive shares from convertible notes
 
                     Diluted 232,599 239,267

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QUANTUM CORPORATION
GAAP TO NON-GAAP RECONCILIATION
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended March 31, 2011
Gross
Margin
      Gross
Margin
Rate
      Net Income
(Loss)
      Per Share
Net Income
(Loss),
Basic
      Per Share
Net Income
(Loss),
Diluted
GAAP $       68,562        41.5% $       (1,652 ) $            (0.01 ) $           (0.01 )
Non-GAAP Reconciling Items:
       Amortization of intangibles 2,575 5,931
       Share-based compensation 405 2,371
       Restructuring charges 602 3,633
Non-GAAP $ 72,144 43.7% $ 10,283 $ 0.04 $ 0.04
 
              Computation of basic and diluted net income (loss) per share: GAAP Non-GAAP
                     Net income (loss) $ (1,652 ) $ 10.283
                            Interest on dilutive convertible notes 1,166
                     Income (loss) for purposes of computing income (loss) per
                     diluted share $ (1,652 ) $ 11,449
 
              Weighted average shares:
                     Basic 226,496 226,496
                            Dilutive shares from stock plans 9,469
                            Dilutive shares from convertible notes 31,158
 
                     Diluted 226,496 267,123
  
Twelve Months Ended March 31, 2011
Gross
Margin
Gross
Margin
Rate
Net Income Per Share
Net Income,
Basic
Per Share
Net Income,
Diluted
GAAP $ 282,982 42.1% $ 4,541 $ 0.02 $ 0.02
Non-GAAP Reconciling Items:
       Amortization of intangibles 14,662 28,381
       Share-based compensation 1,768 10,421
       Restructuring charges 602 3,644
       Loss on debt extinguishment 1,186
       Senior debt amendment fees 861
Non-GAAP $ 300,014 44.6% $ 49,034 $ 0.22 $ 0.21
 
              Computation of basic and diluted net income per share: GAAP Non-GAAP
                     Net income $ 4,541 $ 49,034
                            Interest on dilutive convertible notes 1,761
                     Income for purposes of computing income per diluted share $ 4,541 $ 50,795
 
              Weighted average shares:
                     Basic 220,888 220,888
                            Dilutive shares from stock plans 8,850 8,850
                            Dilutive shares from convertible notes 11,610
 
                     Diluted 229,738 241,348

The non-GAAP 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.

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QUANTUM CORPORATION
FULL YEAR AND FIRST QUARTER FISCAL 2013 FORECASTS
GAAP TO NON-GAAP RECONCILIATION
(Dollars in millions)

FULL YEAR FISCAL 2013

For fiscal 2013, we forecast GAAP and non-GAAP gross margin rates in the mid-40 percent range, with non-GAAP gross margin approximately 100 basis points higher than GAAP gross margin, comprised of 0.6% for intangible amortization and 0.4% for share-based compensation.

Dollar range
Forecast fiscal 2013 operating expense on a GAAP basis $       279.6       $       284.6
 
Forecast amortization of intangibles 9.5
Forecast share-based compensation 15.1
 
Forecast fiscal 2013 operating expense on a non-GAAP basis $ 255.0 $ 260.0

FIRST QUARTER FISCAL 2013

Percentage
Forecast first quarter fiscal 2013 gross margin rate on a GAAP basis    40.7 %   
 
Forecast amortization of intangibles 0.9 %
Forecast share-based compensation 0.4 %
 
Forecast first quarter fiscal 2013 gross margin rate on a non-GAAP basis 42.0 %
 
Dollar range
Forecast first quarter fiscal 2013 operating expense on a GAAP basis $       69.6 $       71.6
 
Forecast amortization of intangibles 3.3
Forecast share-based compensation 3.3
 
Forecast first quarter fiscal 2013 operating expense on a non-GAAP basis $ 63.0 $ 65.0

Estimates based on current (May 9, 2012) projections.

The projected GAAP and non-GAAP financial information set forth in this table represent forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For risk factors that could impact these projections, see our Annual Report on Form 10-K as filed with the SEC on June 14, 2011. We disclaim any obligation to update information in any forward-looking statement.

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.

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