Quantum Announces Update on Plan to Regain Nasdaq Compliance and Delayed Form 10-Q Filing

SAN JOSE, Calif., Jan. 17, 2024 /PRNewswire/ -- Quantum Corporation (Nasdaq: QMCO) ("Quantum" or the "Company") announced today that in accordance with Nasdaq Listing Rules, the Company has submitted its plan to regain compliance on January 16, 2024. If the plan is accepted by the Nasdaq Stock Market LLC ("Nasdaq"), the Company expects to be granted an extension of up to 180 calendar days from the original due date of the quarterly report on Form 10-Q for the period ended September 30, 2023 (the "second fiscal quarter 10-Q"), or until May 7, 2024, to regain compliance.

On November 13, 2023, Quantum filed a Form 12b-25 stating that it was unable to complete its preparation and review of the second fiscal quarter 10-Q within the prescribed time period due to a re-evaluation of the Company's application of standalone selling price under Accounting Standards Codification Topic 606 ("Topic 606").

The Company is targeting to finish its initial assessment, determination of materiality, and completion of the re-evaluation no later than March 31, 2024. Quantum expects to file the second fiscal quarter 10-Q on or before May 7, 2024 (within the anticipated 180-day extension period). As a result of the re-evaluation timing, the Company expects that its quarterly report on Form 10-Q for the period ended December 31, 2023 (the "third fiscal quarter 10-Q") will also be delayed but expects to also file the third fiscal quarter 10-Q by May 7, 2024.

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). 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. These forward-looking statements are largely based on our current expectations and projections about future events affecting our business. Such forward-looking statements include, in particular, statements related to the ongoing re-evaluation of certain accounting matters; timing of completion of the re-evaluation and filing of the second fiscal quarter 10-Q and the third fiscal quarter 10-Q; the Company's expectations regarding Nasdaq's grant of extension; and the Company's plans, objectives and intentions, that are not historical facts generally.

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: the outcome of the pending re-evaluation of accounting matters and the possibility of adjustments, including material adjustments, to the Company's financial statements as the re-evaluation progresses; the discovery of additional and unanticipated information during the re-evaluation process; risks related to the timely completion of the re-evaluation and filing of the second fiscal quarter 10-Q and the third fiscal quarter 10-Q; the risk that Nasdaq may not grant the extension; the ability to meet stock exchange continued listing standards; the possibility that the Nasdaq may delist the Company's securities; risks related to the Company's ability to implement and maintain effective internal control over financial reporting in the future; and the impact of these factors on the Company's performance and outlook.  See also other risks that are described in "Risk Factors" in the Company's filings with the Securities and Exchange Commission (the "SEC"), including its Annual Report on Form 10-K filed with the SEC for the fiscal year ended March 31, 2023, and any subsequent reports filed with the SEC. The Company does not intend to update or alter its 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 | Brett L. Perry
P: 949-224-3874 | 214-272-0070
E: sheltonir@sheltongroup.com

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SOURCE Quantum Corp.