Quantum Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

RESTATEMENT (Tables)

RESTATEMENT (Tables)

12 Months Ended

Mar. 31, 2019

Consolidated balance sheets

QUANTUM CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)


	March 31, 2017
	As Reported			Restatement Adjustments			Restatement Reference		As Restated
ASSETS
Current Assets
Cash and cash equivalents	$	12,958		$	—				$	12,958
Accounts receivable, net of allowance for doubtful accounts of $16 as of March 31, 2017		116,056			(14,110	)		a, d		101,946
Manufacturing inventories		27,661			8,613			a		36,274
Service part inventories		19,849			—					19,849
Other current assets		9,969			(786	)		h		9,183
Restricted cash		1,832			1,122			g		2,954

Total current assets		188,325			(5,161	)				183,164
Property and equipment, less accumulated depreciation		11,186			(310	)		q		10,876
Intangible assets, less accumulated amortization		276			—					276
Restricted cash, long-term		20,000			—					20,000
Other long term assets		5,240			1,686			i, l, o, q		6,926

Total assets	$	225,027		$	(3,785	)			$	221,242

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Liabilities
Current liabilities:
Accounts payable	$	41,611			(785	)		h	$	40,826
Accrued warranty		3,263			(3,263	)		k		—
Deferred revenue, current		84,683			7,642			a, b		92,325
Accrued restructuring charges, current		869			1,025			j		1,894
Long-term debt current portion		—			—					—
Convertible subordinated debt, current		62,827			—					62,827
Accrued compensation		24,104			(315	)		f, g		23,789
Other accrued liabilities		12,998			2,947			a, d, e, k, m, p,		15,945

Total current liabilities		230,355			7,251					237,606
Deferred revenue, long-term		37,642			1,254			b		38,896
Accrued restructuring charges, long-term		481			3,907			j		4,388
Long-term debt, net of current portion		65,028			1,648			i		66,676
Convertible subordinated debt, long-term		—			—					—
Other long-term liabilities		7,520			5,452			m, n, p		12,972

Total liabilities		341,026			19,512					360,538
Commitment and contingencies (Note 11)
Stockholders’ deficit
Preferred stock:
Preferred stock 20,000 shares authorized; no shares issued as of March 31, 2017		—			—					—
Common stock:
Common stock, $0.01 par value; 1,000,000 shares authorized; 34,063 shares issued and outstanding at March 31, 2017		340			—					340
Additional paid-in capital		473,850			—					473,850
Accumulated deficit		(593,295	)		(18,516	)		a-b, e-f, j, l, n-q		(611,811	)
Accumulated other comprehensive income		3,106			(4,781	)		m, q		(1,675	)

Total stockholders’ deficit		(115,999	)		(23,297	)				(139,296	)

Total liabilities and stockholders’ deficit	$	225,027		$	(3,785	)			$	221,242

Consolidated statements of operations


	Year end March 31, 2017
	As Reported			Restatement Adjustments			Restatement References	As Restated
Revenue:
Product revenue	$	322,212		$	(13,894	)	a, c	$	308,318
Service revenue		144,335			1,603		b		145,938
Royalty revenue		38,798			—				38,798

Total revenue		505,345			(12,291	)			493,054

Costs and expenses:
Product cost of revenue		231,207			(4,547	)	a		226,660
Service cost of revenue		60,714			408		e		61,122
Total cost of revenue		291,921			(4,139	)			287,782

Gross profit		213,424			(8,152	)			205,272

Operating expenses:
Research and development		44,379			—				44,379
Sales and marketing		103,235			(2,708	)	c, f		100,527
General and administrative		51,599			(9	)	q		51,590
Restructuring charges		2,063			32		j		2,095

Total operating expenses		201,276			(2,685	)			198,591

Income (loss) from operations		12,148			(5,467	)			6,681
Other expenses and losses, net:
Interest expense, net		7,912			81		q		7,993
Loss on debt extinguishment		41			—				41
Other income, net		(562	)		(39	)	q		(601	)

Income (loss) before income taxes		4,757			(5,509	)			(752	)
Income tax expense (benefit)		1,112			544		l, n, o, p		1,656

Net income (loss)	$	3,645		$	(6,053	)		$	(2,408	)

Net loss per share:
Basic	$	0.11						$	(0.07	)
Diluted	$	0.11						$	(0.07	)

Weighted average common shares outstanding - basic		33,742							33,742
Weighted average common shares outstanding - diluted		34,113							33,742

Statement of cash flows


	For the Fiscal Year Ended March 31, 2017
	As Reported			Restatement Adjustments			Restatement Reference		As Restated
Cash flows from operating activities:
Net income (loss)	$	3,645		$	(6,053	)		a, b, e, f, j, l, n, o, q	$	(2,408	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		5,433			202			k, q		5,635
Amortization of intangible assets		175			(175	)		k		—
Amortization of debt issuance costs		1,373			—					1,373
Product and service parts lower of cost or market adjustment		4,960			2,649			k		7,609
Share-based compensation expense		6,698			—					6,698
Bad debt expense		—			24			k		24
Deferred income taxes, net		97			400			k, l, n-p		497
Loss on disposal of property and equipment		—			11			k		11
Unrealized foreign exchange (gain)/loss		—			(650	)		k		(650	)
Changes in assets and liabilities:
Accounts receivable		(10,097	)		9,727			a, d, k		(370	)
Manufacturing inventories		12,931			(9,104	)		a, k		3,827
Service parts inventories		(4,969	)		1,565			k		(3,404	)
Accounts payable		(4,845	)		(439	)		h, k		(5,284	)
Accrued warranty		(167	)		167			k		—
Accrued restructuring charges		(1,387	)		(257	)		j, k		(1,644	)
Accrued compensation		1,492			292			f, g, k		1,784
Deferred revenue		(2,020	)		334			a, b, k		(1,686	)
Other assets and liabilities		(5,601	)		2,145			a, d, e, i, k, q		(3,456	)

Net cash provided by (used in) operating activities		7,718			(839	)				8,557

Cash flows from investing activities:
Purchases of property and equipment		(1,752	)		(465	)		k, q		(2,217	)
Proceeds from sale of assets		—			736			k		736
Cash distributions from investments		—			48			k		48

Net cash provided by (used in) investing activities		(1,752	)		319					(1,433	)

Cash flows from financing activities:
Borrowings of long-term debt and subordinated convertible debt, net of debt issuance costs		104,914			—					104,914
Repayments on long-term debt		(106,172	)		(6,910	)		k		(113,082	)
Repayment of convertible subordinated debt		(6,910	)		6,910			k		—
Payment of tax withholding due upon vesting of restricted stock		(738	)		1			k		(737	)
Proceeds from issuance of common stock under the employee stock purchase plan		1,020			(1	)		k		1,019

Net cash provided by (used in) financing activities		(7,886	)		—					(7,886	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash		52			(36	)		k		16

Net decrease in cash, cash equivalents and restricted cash		(1,868	)		1,122					(746	)
Cash, cash equivalents and restricted cash at the beginning of period		36,658			—					36,658

Cash, cash equivalents and restricted cash at the end of period	$	34,790		$	1,122				$	35,912

Supplemental disclosure of cash flow information:
Purchases of property and equipment included in accounts payable	$	321		$	(42	)			$	279
Transfer of inventory to property and equipment	$	1,588		$	340				$	1,928
Cash Paid For:
Interest	$	5,952		$	14			k	$	5,966
Taxes, net of refunds	$	1,050		$	(373	)		k	$	677