SAN JOSE, Calif., Oct. 6, 2015 /PRNewswire/ -- Quantum Corp. (NYSE:
QTM) today announced that on Oct. 5,
2015, it repaid approximately $81
million in convertible notes due Nov.
15, 2015, at par, and approximately $1 million in interest. To repay the
notes -- all of which were held by one holder -- the
company used approximately $66
million from its revolving $75
million credit facility with Wells Fargo Capital Finance,
LLC. In addition, Quantum used approximately $16 million of the more than $60 million it had in total cash on hand to cover
approximately $15 million in notes
plus interest. The company will repay holders of the remaining
$3 million of the convertible notes
no later than the Nov. 15 maturity
date.
In conjunction with the debt repayment announcement, Quantum
reported that it expects total revenue for its fiscal second
quarter (ended Sept. 30, 2015) to be
in the range of $116 million to $118
million. This is approximately 2-3 percent below the low end
of the $120 million to $130 million
range the company provided in its July guidance, primarily driven
by a quarter-end sales backlog of approximately $8 million to $9 million, which is significantly
stronger than the company's typical quarterly backlog of
approximately $1 million. This large
backlog reflected strong end-of-quarter demand, particularly in
scale-out storage, with an unusually high number of customers
placing orders in the last three days of the quarter. Because of
the magnitude and timing of the orders received at quarter-end and
a shortage of parts available from Quantum's disk suppliers, the
company did not complete production of all the orders received
during the quarter but will ship these orders in the fiscal third
quarter.
"We're pleased that we've repaid nearly all of our November 2015 convertible notes and that we had
strong demand for our solutions in Q2," said Jon Gacek, president and CEO of Quantum. "Our
scale-out storage momentum continued, and we also saw an uptick in
data protection revenue from Q1, including tape revenue. While we
are disappointed that we were unable to get everything shipped
during the quarter, the strong customer demand speaks to the power
of our offerings and the value we deliver. Looking ahead, we remain
optimistic about our business and continue to target full-year
scale-out storage revenue growth of 50 percent. Finally, although
these are only preliminary results, we expect to have generated
cash from operations and increased total cash for Q2."
Fiscal Second Quarter Earnings Conference Call and Audio
Webcast Notification
Quantum will issue a news release on its fiscal second quarter
financial results on Thursday, Oct. 29,
2015, after the close of the market. The company will also
hold a conference call and live audio webcast to discuss these
results that same day at 2:00 p.m.
PDT. Press and industry analysts are invited to attend in
listen-only mode.
Dial-in number: 719-457-2689 (U.S. and International); access code:
532638
Replay number: 719-457-0820 (U.S. and International); access code:
532638
Replay expiration: Tuesday, Nov. 3,
2015, at 5:00 p.m. PST
Webcast site: www.quantum.com/investors
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 and Be Certain 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: This press release contains
"forward-looking" statements. All statements other than statements
of historical fact are statements that could be deemed
forward-looking statements. Specifically, but without limitation,
statements that: i) we will repay holders of the remaining
$3 million of the convertible notes
no later than the Nov. 15 maturity
date, ii) relate to preliminary results for the Company's fiscal
second quarter (ended Sept. 30,
2015), including expected total revenue, sales backlog,
generation of cash from operations and increasing total cash, iii)
we will ship uncompleted orders in the fiscal third quarter, and
iv) we remain optimistic about our business and continue to target
full-year scale-out storage revenue growth of 50 percent, 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 statements.
More detailed information about these 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 Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission on August 13,
2015 and in Quantum's Annual Report on Form 10-K filed with
the Securities and Exchange Commission on June 12, 2015. Quantum expressly disclaims any
obligation 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.
Contact:
Brad Cohen
Public
Relations
Quantum Corp.
(408)
944-4044
brad.cohen@quantum.com
Brinlea Johnson or Allise
Furlani
Investor
Relations
The Blueshirt Group
(212)
331-8424 or (212)
331-8433
brinlea@blueshirtgroup.com or
allise@blueshirtgroup.com
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SOURCE Quantum Corp.