Quantum Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

RESTATEMENT (Tables)

RESTATEMENT (Tables)

6 Months Ended

Sep. 30, 2018

Consolidated balance sheets

QUANTUM CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands)


	September 30, 2017
	As Reported			Restatement Adjustments			Restatement Reference		As Restated
ASSETS
Current Assets
Cash and cash equivalents	$	9,504		$	4,479			k	$	13,983
Accounts receivable,		105,771			(6,545	)		a		99,226
Manufacturing inventories		29,119			5,593			a		34,712
Service part inventories		19,915			—					19,915
Other current assets		8,795			786			g, q		9,581
Restricted cash		1,969			1,094			f		3,063

Total current assets		175,073			5,407					180,480
Property and equipment, less accumulated depreciation		10,745			(325	)		r		10,420
Restricted cash, long-term		20,000			—					20,000
Other long-term assets		5,332			1,418			h, m, p, r		6,750

Total assets	$	211,150		$	6,500				$	217,650

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Liabilities
Current liabilities:
Accounts payable	$	48,488			—				$	48,488
Accrued warranty		2,950			(2,950	)		l		—
Deferred revenue, current		77,090			11,415			a, b		88,505
Accrued restructuring charges, current		1,743			627			i		2,370
Convertible subordinated debt, current		57,034			—					57,034
Accrued compensation		23,180			(925	)		e, f		22,255
Other accrued liabilities		12,927			3,634			a, d, l, n, q, r		16,561

Total current liabilities		223,412			11,801					235,213
Deferred revenue, long-term		35,906			868			b		36,774
Accrued restructuring charges, long-term		423			3,192			i		3,615
Long-term debt, net of current portion		70,631			5,860			h, m		76,491
Other long-term liabilities		5,112			5,924			n, p, q		11,036

Total liabilities		335,484			27,645					363,129
Commitment and contingencies (Note 12)
Stockholders’ deficit
Preferred stock		—			—					—
Common stock		347			—					347
Additional paid-in capital		476,409			(316	)		j		476,093
Accumulated deficit		(604,832	)		(16,197	)		a, b, d, e, m, o, p, q, r		(621,029	)
Accumulated other comprehensive income (loss)		3,742			(4,632	)		n, r		(890	)

Total stockholders’ deficit		(124,334	)		(21,145	)				(145,479	)

Total liabilities and stockholders’ deficit	$	211,150		$	6,500				$	217,650

Consolidated statements of operations


	Six Months Ended September 30, 2017
	As Reported			Restatement Adjustments			Restatement References		As Restated
Revenue:
Product revenue	$	135,224		$	1,855			a, c	$	137,079
Service revenue		69,410			617			b		70,027
Royalty revenue		19,275			—					19,275

Total revenue		223,909			2,472					226,381

Costs and expenses:
Product cost of revenue		99,510			2,772			a		102,282
Service cost of revenue		29,807			135			d		29,942
Total cost of revenue		129,317			2,907					132,224

Gross profit		94,592			(435	)				94,157

Operating expenses:
Research and development		20,795			—					20,795
Sales and marketing		54,003			(1,101	)		c, e		52,902
General and administrative		24,667			(737	)		j, r		23,930
Restructuring charges		2,366			(665	)		i		1,701

Total operating expenses		101,831			(2,503	)				99,328

Loss from operations		(7,239	)		2,068					(5,171	)
Other expenses and losses, net:
Interest expense, net		5,175			42			r		5,217
Loss on debt extinguishment		39			—					39
Other income, net		(175	)		—					(175	)

Loss before income taxes		(12,278	)		2,026					(10,252	)
Income tax benefit		(741	)		(293	)		m, o, p, q		(1,034	)

Net loss	$	(11,537	)	$	2,319				$	(9,218	)

Net loss per share:
Basic	$	(0.34	)						$	(0.27	)
Diluted	$	(0.34	)						$	(0.27	)

Weighted average common shares outstanding - basic		34,337								34,338
Weighted average common shares outstanding - diluted		34,337								34,338


	Three Months Ended September 30, 2017
	As Reported			Restatement Adjustments			Restatement References		As Restated
Revenue:
Product revenue	$	63,606		$	3,990			a, c	$	67,596
Service revenue		34,165			745			b		34,910
Royalty revenue		9,280			—					9,280

Total revenue		107,051			4,735					111,786

Costs and expenses:
Product cost of revenue		48,561			3,041			a		51,602
Service cost of revenue		14,717			148			d		14,865
Total cost of revenue		63,278			3,189					66,467

Gross profit		43,773			1,546					45,319

Operating expenses:
Research and development		10,190			—					10,190
Sales and marketing		26,179			(355	)		c, e		25,824
General and administrative		12,158			(652	)		j, r		11,506
Restructuring charges		31			39			i		70

Total operating expenses		48,558			(968	)				47,590

Loss from operations		(4,785	)		2,514					(2,271	)
Other expenses and losses, net:
Interest expense, net		2,617			21			r		2,638
Loss on debt extinguishment		39			—					39
Other income, net		(77	)		—					(77	)

Loss before income taxes		(7,364	)		2,493					(4,871	)
Income tax expense		499			(271	)		m, o, p, q		228

Net loss	$	(7,863	)	$	2,764				$	(5,099	)

Net loss per share:
Basic	$	(0.23	)						$	(0.15	)
Diluted	$	(0.23	)						$	(0.15	)

Weighted average common shares outstanding - basic		34,561								34,580
Weighted average common shares outstanding - diluted		34,561								34,580

Consolidated statements of cash flows


	For the Six Months Ended September 30, 2017
	As Reported			Restatement Adjustments			Restatement Reference		As Restated
Cash flows from operating activities:
Net loss	$	(11,537	)	$	2,319			a, b, e, f, g, h, i, l, n, p, q	$	(9,218	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		2,525			85			l, r		2,610
Amortization of debt issuance costs		855			—					855
Product and service parts lower of cost or market adjustment		2,319			1,844			l		4,163
Tax benefit from settlement		(1,656	)		1,656			l		—
Share-based compensation expense		3,330			(317	)		l		3,013
Non-cash interest expense		621			(621	)		l		—
Non-cash loss on debt extinguishment		9			30			l		39
Pension expense		—			733			l		733
Bad debt expense		—			292			l		292
Deferred income taxes, net		144			(463	)		l, m, o, p		(319	)
Loss on disposal of property and equipment		—			2			l		2
Unrealized foreign exchange (gain)/loss		—			1,019			l		1,019
Loss on investments		—			72			l		72
Changes in assets and liabilities:
Accounts receivable		10,284			(7,219	)		a, l		3,065
Manufacturing inventories		(1,752	)		553			a, l		(1,199	)
Service parts inventories		(2,737	)		353			l		(2,384	)
Accounts payable		6,537			838			g, l		7,375
Accrued warranty		(313	)		313			l		—
Accrued restructuring charges		817			(1,114	)		e, f, g		(297	)
Accrued compensation		(1,236	)		(1,031	)		i, l		(2,267	)
Deferred revenue		(9,329	)		3,382			a, b, l		(5,947	)
Other assets and liabilities		815			(3,728	)		a, d, g, h, l, m, n, p, q		(2,913	)

Net cash used in operating activities		(304	)		(1,002	)				(1,306	)

Cash flows from investing activities:
Purchases of property and equipment		(1,156	)		5			l		(1,151	)
Proceeds from sale of assets		—			275			l		275
Cash distributions from investments		278			—					278

Net cash used in investing activities		(878	)		280					(598	)

Cash flows from financing activities:
Borrowings of long-term debt and subordinated convertible debt, net of debt issuance costs		164,650			620			k		165,270
Repayments on long-term debt		(160,245	)		4,479			k		(155,766	)
Repayment of convertible subordinated debt		(6,000	)		(30	)		l		(6,030	)
Payment of tax withholding due upon vesting of restricted stock		(1,775	)		(2	)		l		(1,777	)
Proceeds from issuance of common stock, net		1,010			2			l		1,012

Net cash provided by (used in) financing activities		(2,360	)		5,069					2,709

Effect of exchange rate changes on cash, cash equivalents and restricted cash		82			247			l		329

Net decrease in cash, cash equivalents and restricted cash		(3,454	)		4,588					1,134
Cash, cash equivalents and restricted cash at the beginning of period		36,658			(746	)				35,912

Cash, cash equivalents and restricted cash at the end of period	$	33,204		$	3,842				$	37,046

Supplemental disclosure of cash flow information:
Purchases of property and equipment included in accounts payable	$	335		$	(48	)		l	$	287
Transfer of inventory to property and equipment	$	—		$	919			l	$	919
Cash Paid For:
Interest	$	—		$	4,515			l	$	4,515
Taxes, net of refunds	$	—		$	914			l	$	914