About Quantum Corporation
Quantum Corp. provides hardware and software used for data archiving, backup, and recovery. Its software-defined storage products include non-volatile memory express (NVMe) to solid-state drives (SSD), hard disk drives (HDD), tape, and the cloud. Some of the company's products facilitate the storage and accessing of video and are used by broadcasters, studios, post-production companies, sports franchises, and corporations. Quantum sells its products through resellers and distributors and to computing equipment makers such as Dell, EMC, HP, IBM, and Oracle. The San Jose, California-based company relies on five customers for about a third of its sales. About 55% of revenue comes from customers in the US.
Quantum's revenue has declined for two years in a row, lopping off about $1 billion from the top line. It also has reported two years of losses.
In 2019 (ended June), sales slid 8% to $402.7 million, down $35 million from 2018. Product revenue dropped 9% in 2019 due to lower sales of high performance shared storage systems and devices, and media and royalty revenue tumbled 28% on lower volume and sales of older Linear Tape Open (LTO) technology. Service revenue slipped about 1% year-over-year.
Quantum reported a net loss of $42.8 million in 2019 compared to a loss of $43.4 million in 2018. While the company reduced its cost of revenue by about $30 million in 2019 compared to 2018, it had costs related to extinguishment of debt and restated earnings in 2019; those costs were much lower in 2018.
The company's cash on hand was about $10.8 million in 2019 compared to $10.9 in 2018. Quantum had negative cash flow of $16.8 million in 2019, while investing and financing activities provided $235 million and $16.2 million, respectively.
Quantum's level of debt, about $145 million, constrains its ability to operate in that it might not generate sufficient cash to comply with it lending agreements and pay the principal and interest on the debt.
Quantum in 2019 completed a restatement of earnings for three years following an investigation into a revenue recognition problems at the company. The company has changed leadership, streamlined operations (paring $70 million in annual costs), and introduced new products to try to turn the company around after losing about $1 billion in revenue in the past three years.
Quantum is building an array of products around its traditional storage products, tape and hard disk drives, with six major new product releases in 2019. One such product is the F-Series, an all-NVMe product for editing, rendering, and processing video content and other large unstructured datasets.
Another new product is the Quantum VS-Series for long-term, low-cost storage of video surveillance. The StorNext offering provides scale-out storage for the high-speed processing and video surveillance
As part of its streamling, Quantum moved its equipment production to contract manufacturers.
224 Airport Pkwy Ste 550
San Jose, CA 95110-1097
Phone: 1 (408) 944-4000
Employer Type: Publicly Owned
Stock Symbol: QMCO
Stock Exchange: , NASDAQ
SVP and CFO: Fuad Ahmad
President and CEO: Jon W. Gacek
Chairman: Raghavendra Rau
Employees (This Location): 314
Employees (All Locations): 829
San Jose, CA
Long Beach, CA
Newport Beach, CA
Colorado Springs, CO
Mendota Heights, MN
New Delhi, India