SAN JOSE, Calif., Oct. 29, 2014 /PRNewswire/ --

Highlights:

  • Delivered Total Revenue of $135.1 Million, a 3% Increase Year-over-Year
  • Grew Scale-out Storage Revenue 58% Year-over-Year to $25.5 Million
  • Increased DXi Deduplication Revenue 11% Year-over-Year
  • Generated GAAP and Non-GAAP Operating Income of $3.8 Million and $9.4 Million, Respectively
  • Produced GAAP and Non-GAAP Net Income of $1.2 Million and $6.8 Million, Respectively
  • Raises Fiscal Year Net Income Guidance

Quantum Corp. (NYSE: QTM) today reported results for the fiscal second quarter 2015 ended Sept. 30, 2014.

Fiscal Second Quarter 2015 Results
(Unless otherwise noted, all comparisons are relative to the fiscal second quarter 2014.)

  • Total revenue was $135.1 million, an increase of 3 percent.
  • Total branded revenue grew to $107.5 million, a 7 percent increase.
  • Scale-out storage and related service revenue grew 58 percent to a record $25.5 million, reflecting increasing demand for StorNext® 5 high-performance shared storage and Lattus extended online storage solutions.
  • DXi® backup and deduplication appliance revenue increased 11 percent, driven by the strong performance of Quantum's new DXi6900 and DXi4700 platforms.
  • GAAP operating income was $3.8 million, up from a GAAP operating loss of $5.0 million.
  • GAAP net income was $1.2 million, or less than $0.01 per diluted share, up from a GAAP net loss of $7.9 million, or $0.03 per diluted share.
  • Non-GAAP operating income increased to $9.4 million, from $1.0 million.
  • Non-GAAP net income improved to $6.8 million, or $0.03 per diluted share, up from a non-GAAP net loss of $1.9 million, or $0.01 per diluted share.
  • Cash generated from operations was $2.3 million, and Quantum ended the quarter with nearly $110 million in total cash and cash equivalents.

"Our positive second quarter results reflect the improvements we've made in our financial model and the increased leverage it provides as we capitalize on the market momentum we're seeing across our business," said Jon Gacek, President and CEO of Quantum. "In scale-out storage, we are driving significant growth through our unique combination of industry-leading performance and policy-driven tiering software, which is ideally suited to meeting customers' evolving workflow needs. In data protection, we are taking advantage of growth and profit opportunities with a more efficient, integrated solutions approach that leverages our best-in-class disk and tape technologies to help organizations meet new backup and archive requirements.

"As we begin the second half of the fiscal year, we are well-positioned to build on this market momentum and the power of our scale-out storage and data protection portfolios to deliver greater growth, profit and shareholder value."

Fiscal 2015 Updated Outlook
Reflecting its strong performance over the last two quarters and increasing market momentum, Quantum has raised the lower end of its revenue guidance for the full fiscal year and increased its net income and earnings per share guidance. The company now expects:

  • Revenue of approximately $545 million to $550 million.
  • GAAP net income of $8.9 million to $9.9 million, or $0.03-$0.04 per diluted share.
  • Non-GAAP net income of $24 million to $25 million, or $0.08-$0.09 per diluted share.

Fiscal Third Quarter 2015 Outlook
For the fiscal third quarter, Quantum expects:

  • Revenue of approximately $145 million to $150 million.
  • GAAP net income of $7.9 million to $8.9 million, or $0.03 per diluted share.
  • Non-GAAP net income of $11 million to $12 million, or $0.04 per diluted share.

Fiscal Second Quarter 2015 Business Highlights

  • Quantum acquired Symform's cloud storage services platform and development team, gaining well-proven technology and expertise that the company plans to leverage in both scale-out storage and data protection. Used by 45,000 individuals and small businesses in 170 countries, Symform's extensible cloud service has petabytes of storage and billions of data objects under management in a broad range of use cases. It offers a wide variety of options for integrating customer data into the cloud — including file sync and share, file backup and archive and system replication — with a well-known focus on extremely simple deployment and ease of use.
  • Quantum announced StorNext Pro™ Workgroup, a new easy-to-deploy, high-performance and high-capacity content workflow solution for postproduction and broadcast professionals. This integrated solution supports ingest, production, review and delivery, along with different options for petascale content storage and access at any stage of the workflow — all in one system. By choosing StorNext Pro Workgroup with Quantum's Lattus™ object storage-based system, users can extend their online collaboration by seamlessly shifting non-real-time workflow operations to Lattus — a fully protected, infinitely scalable storage infrastructure — with no negative impact on performance.
  • Quantum's new DXi6900 enterprise backup and deduplication appliance, which became generally available during the quarter, quickly gained market traction, with wins of more than $200,000 each at a range of customers, including a multinational biopharmaceutical company, a major insurance provider in Asia and a large county health network. In addition, Quantum continued to see strong adoption of its DXi4700 appliance, which was introduced earlier this year. DXi4700 revenue increased nearly 60 percent sequentially, and approximately 45 percent of sales were to new Quantum customers.
  • TVBEurope honored Quantum's StorNext Pro Solutions with StorNext Connect™ as a Best of Show Award winner at IBC2014. The awards recognize the best technology, equipment and companies serving the broadcast industry. In the case of Quantum, the award reflects the many benefits of easy-to-deploy, high-performance StorNext Pro storage systems for today's complex workflow environments.

Conference Call and Audio Webcast Notification
Quantum will hold a conference call today, Oct. 29, 2014, at 2:00 p.m. PDT to discuss its fiscal second quarter results. Press and industry analysts are invited to attend in listen-only mode. Dial-in number: 719-457-2085, conference ID: 5622078. Quantum will provide a live audio webcast of the conference call beginning today, Oct. 29, 2014, at 2:00 p.m. PDT. Site for the webcast and related information: www.quantum.com/investors.

Following completion of the call, a recorded replay of the webcast will be available at www.quantum.com/investors. For those without access to the Internet, a replay of the call will be available beginning at 5:00 p.m. PDT on Oct. 29, 2014 through Nov. 3, 2014 at 5:00 p.m. PST. To listen to the telephonic replay, call 719-457-0820, replay passcode: 5622078.

About Quantum
Quantum is a leading expert in scale-out storage, archive and data protection, providing solutions for capturing, sharing and preserving digital assets over the entire data lifecycle. From small businesses to major enterprises, more than 100,000 customers have trusted Quantum to address their most demanding data workflow challenges. With Quantum, customers can Be Certain™ they have the end-to-end storage foundation to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. See how at www.quantum.com/customerstories.

Quantum, the Quantum logo, Be Certain, DXi, StorNext, StorNext Pro, StorNext Connect and Lattus 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 statements regarding delivering greater growth, profit and shareholder value in the second half of the fiscal year, and all of our statements under the sections titled Fiscal 2015 Updated Outlook and Fiscal Third Quarter 2015 Outlook 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 "Risk Factors" in Quantum's Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 6, 2014 and in Quantum's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 8, 2014. 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 and Board of Directors use 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 amortization of intangible assets, share-based compensation expense, restructuring charges, outsourcing transition costs, proxy contest and related costs, Crossroads patent litigation costs, acquisition expenses and net Symform expenses for the following reasons:

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.

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. 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.

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.

Outsourcing Transition Costs
Outsourcing transition costs are expenses attributable to transitioning our manufacturing to an outsourced model. These costs are excluded from non-GAAP financial measures because they are not considered core operating activities, and management believes that it is appropriate to exclude these costs in order to provide investors the ability to compare Quantum's period-over-period operating results from continuing operations.

Proxy Contest and Related Costs
Proxy contest and related costs are expenses incurred to respond to activities and inquiries of Starboard Value LP, including their proxy solicitation. The Company has not incurred significant expenses in connection with such matters in historical periods and these costs are not considered core operating activities. Management believes that it is appropriate to exclude these costs in order to provide investors the ability to compare Quantum's period-over-period operating results from continuing operations.

Crossroads Patent Litigation Costs
Crossroads patent litigation costs are expenses incurred to defend ourselves and perform other activities related to a patent infringement lawsuit filed by Crossroads Systems, Inc. These costs are excluded from non-GAAP financial measures because they are not considered core operating activities, and management believes that it is appropriate to exclude these costs in order to provide investors the ability to compare Quantum's period-over-period operating results from continuing operations.

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

Symform Expenses, Net
Quantum acquired a cloud storage services platform from Symform, Inc. ("Symform") in July 2014. Symform revenue comprises revenue generated from the Symform cloud storage services platform. Symform expenses consist of costs related to running, maintaining and further developing the Symform cloud storage services platform as well as the costs of integrating Symform into Quantum's business. Net Symform expenses represent Symform expenses less Symform revenue, and non-GAAP gross margin excludes both Symform revenue and cost of revenue. Management believes that it is appropriate to exclude these amounts in order to provide investors with a view of Quantum's results consistent with how management views and is running the business.

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.

Note 1
In the fourth quarter of fiscal year 2014, Quantum identified errors related to the accounting for rent expense and certain allowances for estimated future price adjustments to customers which impacted prior reporting periods. As a result, the company's financial statements for the second quarter of fiscal 2014 have been revised. Revenue for the second quarter of fiscal 2014 has been increased less than $0.1 million and general and administrative expense has been reduced by less than $0.1 million. For additional information, refer to our Form 10-K filed with the Securities and Exchange Commission on June 6, 2014.

Contact:
Brad Cohen
Public Relations
Quantum Corp.
(408) 944-4044
brad.cohen@quantum.com

Monica Gould or Allise Furlani
Investor Relations
The Blueshirt Group
(212) 871-3927 or (212) 331-8433
monica@blueshirtgroup.com or allise@blueshirtgroup.com


QUANTUM CORPORATION


CONDENSED CONSOLIDATED BALANCE SHEETS


(In thousands)


(Unaudited)









September 30, 2014


March 31, 2014*









Assets






Current assets:






      Cash and cash equivalents 

$                      105,031


$                        99,125



      Restricted cash 

2,685


2,760



      Accounts receivable 

92,882


101,605



      Manufacturing inventories 

36,200


34,815



      Service parts inventories 

24,627


25,629



      Other current assets 

10,382


10,161



Total current assets

271,807


274,095









Long-term assets:






 Property and equipment 

16,261


17,574



 Intangible assets 

1,051


3,911



 Goodwill 

55,613


55,613



 Other long-term assets 

9,451


10,605



Total long-term assets

82,376


87,703










$                      354,183


$                      361,798









Liabilities and Stockholders' Deficit






Current liabilities:






 Accounts payable 

$                        42,157


$                        41,792



 Accrued warranty 

5,290


6,116



 Deferred revenue, current 

88,088


98,098



 Accrued restructuring charges, current 

3,424


4,345



 Accrued compensation 

26,873


25,036



 Other accrued liabilities 

18,941


15,168



Total current liabilities

184,773


190,555









Long-term liabilities:






   Deferred revenue, long-term 

38,197


40,054



   Accrued restructuring charges, long-term 

3,577


4,023



   Convertible subordinated debt 

203,735


203,735



   Other long-term liabilities 

10,103


10,831



Total long-term liabilities

255,612


258,643









Stockholders' deficit

(86,202)


(87,400)










$                      354,183


$                      361,798








*

Derived from the March 31, 2014 audited Consolidated Financial Statements.


QUANTUM CORPORATION


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(In thousands, except per share amounts)


(Unaudited)













 Three Months Ended 


 Six Months Ended 




September 30, 2014


September 30, 2013


September 30, 2014


September 30, 2013






(Revised)  Note 1




(Revised)  Note 1


Revenue:










Product 

$                       85,216


$                       84,756


$                     165,410


$                     170,605



Service 

39,157


36,194


77,657


72,686



Royalty 

10,733


10,529


20,167


36,037



Total revenue

135,106


131,479


263,234


279,328


Cost of revenue:










Product 

55,593


57,882


110,501


116,665



Service 

17,584


17,116


35,278


36,347



Restructuring charges related to cost of revenue

--


89


--


89



Total cost of revenue

73,177


75,087


145,779


153,101



Gross margin

61,929


56,392


117,455


126,227













Operating expenses:










Research and development

15,157


16,359


29,711


33,053



Sales and marketing

28,218


29,995


55,923


60,153



General and administrative

14,085


14,795


28,456


29,484



Restructuring charges

624


208


1,489


2,767



Total operating expenses

58,084


61,357


115,579


125,457



Gain on sale of assets

--


--


462


--



Income (loss) from operations

3,845


(4,965)


2,338


770













Other income and expense

215


46


90


421



Interest expense

(2,456)


(2,440)


(4,900)


(4,879)



Income (loss) before income taxes

1,604


(7,359)


(2,472)


(3,688)



Income tax provision

356


534


604


924



Net income (loss)

$                         1,248


$                        (7,893)


$                        (3,076)


$                        (4,612)













Basic and diluted net income (loss) per share

$                           0.00


$                          (0.03)


$                          (0.01)


$                          (0.02)













Weighted average shares:










Basic

254,760


247,074


252,724


246,569



Diluted

257,579


247,074


252,724


246,569























Included in the above Statements of Operations:

















Amortization of intangibles:










Cost of revenue

$                            215


$                            368


$                            593


$                            736



Sales and marketing

928


1,857


2,784


3,713




1,143


2,225


3,377


4,449



Share-based compensation:










Cost of revenue

333


523


747


1,051



Research and development

603


908


1,383


1,776



Sales and marketing

887


1,080


1,797


2,154



General and administrative

846


980


1,810


1,866




2,669


3,491


5,737


6,847



Outsourcing transition costs:










Cost of revenue

--


--


126


--




--


--


126


--



Proxy contest and related costs:










General and administrative

659


--


847


--




659


--


847


--



Crossroads patent litigation costs:










General and administrative

197


--


419


--




197


--


419


--



Acquisition expenses:










General and administrative

4


--


4


--




4


--


4


--



Symform expenses, net:










Gross margin

20


--


20


--



Research and development

110


--


110


--



Sales and marketing

91


--


91


--




221


--


221


--























 Note 1 is presented above, before the Condensed Consolidated Statements of Operations.


QUANTUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)








Six Months Ended



September 30, 2014


September 30, 2013





(Revised) Note 1

Cash flows from operating activities:





Net loss


$ (3,076)


$ (4,612)

Adjustments to reconcile net loss to net cash provided by operating activities:





Depreciation


4,272


5,671

Amortization of intangible assets


3,377


4,449

Amortization of debt issuance costs


829


816

Service parts lower of cost or market adjustment


2,007


6,659

Gain on sale of assets


(462)


--

Deferred income taxes


(50)


59

Share-based compensation


5,737


6,847

Other non-cash


(302)


--

Changes in assets and liabilities, net of effect of acquisition:





Accounts receivable


8,723


10,520

Manufacturing inventories


(3,213)


185

Service parts inventories


(687)


1,688

Accounts payable


390


(14,245)

Accrued warranty


(826)


(1,031)

Deferred revenue


(11,867)


(6,449)

Accrued restructuring charges


(1,393)


359

Accrued compensation


2,151


(5,195)

Other assets and liabilities


2,941


2,507

Net cash provided by operating activities


8,551


8,228






Cash flows from investing activities:





Purchases of property and equipment


(1,912)


(3,226)

Proceeds from sale of assets


462


--

Increase in restricted cash


(69)


(117)

Purchases of other investments


--


(534)

Return of principal from other investments


104


--

Payment for business acquisition, net of cash acquired


(517)


--

Net cash used in investing activities


(1,932)


(3,877)






Cash flows from financing activities:





Payment of taxes due upon vesting of restricted stock


(2,187)


(1,770)

Proceeds from issuance of common stock


1,533


2,247

Net cash provided by (used in) financing activities


(654)


477






Effect of exchange rate changes on cash and cash equivalents


(59)


25






Net increase in cash and cash equivalents


5,906


4,853

Cash and cash equivalents at beginning of period


99,125


68,976

Cash and cash equivalents at end of period


$ 105,031


$ 73,829






Note 1 is presented above, before the Condensed Consolidated Statements of Operations.

QUANTUM CORPORATION

GAAP TO NON-GAAP RECONCILIATION

(In thousands, except per share amounts)

(Unaudited)
















Three Months Ended September 30, 2014


Gross Margin


Gross Margin Rate


Income From Operations


Operating Margin


Net Income


Per Share Net Income, Basic


Per Share Net Income, Diluted

GAAP 

$   61,929


45.8%


$           3,845


2.8%


$      1,248


$               0.00


$                   0.00

Non-GAAP Reconciling Items:














Amortization of intangibles

215




1,143




1,143





Share-based compensation

333




2,669




2,669





Restructuring charges

--




624




624





Proxy contest and related costs

--




659




659





Crossroads patent litigation costs

--




197




197





Acquisition expenses

--




4




4





Symform expenses, net

20




221




221





Non-GAAP

$     62,497


46.3%


$             9,362


6.9%


$        6,765


$                0.03


$                     0.03





























 Computation of basic and diluted net income per share: 




 GAAP 


 Non-GAAP 

 Net income 








$              1,248


$                   6,765

 Interest on dilutive convertible notes 




--


788

 Income for purposes of computing income per diluted share 




$              1,248


$                   7,553















 Weighted average shares: 









 Basic  










254,760


254,760

 Dilutive shares from stock plans 






2,819


2,819

 Dilutive shares from convertible notes 






--


42,502

 Diluted 






257,579


300,081






























Six Months Ended September 30, 2014


Gross Margin


Gross Margin Rate


Income From Operations


Operating Margin


Net Income (Loss)


Per Share Net Income (Loss), Basic


Per Share Net Income (Loss), Diluted

GAAP 

$ 117,455


44.6%


$           2,338


0.9%


$    (3,076)


$             (0.01)


$                  (0.01)

Non-GAAP Reconciling Items:














Amortization of intangibles

593




3,377




3,377





Share-based compensation

747




5,737




5,737





Restructuring charges

--




1,489




1,489





Outsourcing transition costs

126




126




126





Proxy contest and related costs

--




847




847





Crossroads patent litigation costs

--




419




419





Acquisition expenses

--




4




4





Symform expenses, net

20




221




221





Non-GAAP

$   118,941


45.2%


$           14,558


5.5%


$        9,144


$                0.04


$                     0.04















 Computation of basic and diluted net income (loss) per share: 


 GAAP 


 Non-GAAP 

 Net income (loss) 






$            (3,076)


$                   9,144















 Weighted average shares: 





 Basic  





252,724


252,724

 Dilutive shares from stock plans 





--


2,878

 Diluted 







252,724


255,602















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.
















Three Months Ended September 30, 2013


(Revised)  Note 1


Gross Margin


Gross Margin Rate


Income (Loss) From Operations


Operating Margin


Net Loss 


Per Share Net Loss, Basic


Per Share Net Loss, Diluted

 GAAP  

$   56,392


42.9%


$          (4,965)


(3.8)%


$    (7,893)


$             (0.03)


$                  (0.03)

 Non-GAAP Reconciling Items: 














 Amortization of intangibles 

368




2,225




2,225





 Share-based compensation 

523




3,491




3,491





 Restructuring charges 

89




297




297





 Non-GAAP 

$     57,372


43.6%


$             1,048


0.8%


$      (1,880)


$              (0.01)


$                   (0.01)















 Computation of basic and diluted net loss per share: 




 GAAP 


 Non-GAAP 

 Net loss   










$            (7,893)


$                 (1,880)















 Weighted average shares: 












 Basic and diluted 










247,074


247,074
















 Six Months Ended September 30, 2013 


(Revised)  Note 1


Gross Margin


Gross Margin Rate


Income From Operations


Operating Margin


Net Income (Loss)


Per Share Net Income (Loss), Basic


Per Share Net Income (Loss), Diluted

 GAAP  

$ 126,227


45.2%


$               770


0.3%


$    (4,612)


$             (0.02)


$                  (0.02)

 Non-GAAP Reconciling Items: 














 Amortization of intangibles 

736




4,449




4,449





 Share-based compensation 

1,051




6,847




6,847





 Restructuring charges 

89




2,856




2,856





 Non-GAAP 

$   128,103


45.9%


$           14,922


5.3%


$        9,540


$                0.04


$                     0.04















 Computation of basic and diluted net income (loss) per share: 


 GAAP 


 Non-GAAP 

 Net income (loss) 





$            (4,612)


$                   9,540

 Interest on dilutive convertible notes 




--


1,575

Income (loss) for purposes of computing income (loss) per diluted share


$           (4,612)


$                 11,115















 Weighted average shares: 









 Basic 











246,569


246,569

 Dilutive shares from stock plans 






--


2,851

 Dilutive shares from convertible notes 






--


42,502

 Diluted 











246,569


291,922


Note 1 is presented above, before the Condensed Consolidated Statements of Operations.

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.

QUANTUM CORPORATION

FORECAST THIRD QUARTER AND FISCAL 2015

GAAP TO NON-GAAP RECONCILIATION

(Dollars in millions)






FORECAST THIRD QUARTER FISCAL 2015










Dollar Range

Forecast net income on a GAAP basis*

$    7.9  --  $      8.9

Forecast amortization of intangibles

0.2

Forecast share-based compensation

2.9

Forecast net income on a non-GAAP basis

$   11.0  --  $    12.0






Dollars per Share

Forecast diluted earnings per share on a GAAP basis*

$0.03

Forecast amortization of intangibles

0.00

Forecast share-based compensation 

0.01

Forecast diluted earnings per share on a non-GAAP basis

$0.04





FORECAST FULL YEAR FISCAL 2015














Dollar Range

Forecast net income on a GAAP basis*

$     8.9  --  $      9.9

Forecast amortization of intangibles

3.7

Forecast share-based compensation

11.4

Forecast net income on a non-GAAP basis

$   24.0  --  $   25.0






Dollars per Share

Forecast diluted earnings per share on a GAAP basis*

$    0.03  --  $    0.04

Forecast amortization of intangibles

0.01

Forecast share-based compensation 

0.04

Forecast diluted earnings per share on a non-GAAP basis

$   0.08  --  $    0.09









* Forecast third quarter and fiscal 2015 GAAP net income and diluted earnings per share do not reflect facility restructuring charges, outsourcing transition costs, proxy contest and related costs, Crossroads patent litigation costs, acquisition expenses or Symform expenses (net).  The facility restructuring charges will be recognized when we vacate the various locations, which may occur in the third quarter of fiscal 2015 or a later period in fiscal 2015.





Estimates based on current (October 29, 2014) 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 6, 2014.  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.

SOURCE Quantum Corp.