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, NetApp, HP, IBM, and Oracle. Nearly 60% of revenue comes from customers in the US.
The company's product portfolio is delivered into three:
Product (more than 60% of total revenue) is comprised of multiple storage solution hardware and software offerings targeted towards consumer and enterprise customers.
Service (nearly 30%) offers installation services on all company's products. This primarily consists of three components: post-contract customer support agreements, installation, and consulting & training. Customers have the option to choose between different levels of hardware and software support. The Company's support plans include various stand-ready obligations such as technical assistance hot-lines, replacement parts maintenance, and remote monitoring that are delivered whenever called upon by its customers. Support plans provide additional services and assurance outside the scope of its primary product warranties.
Royalty (about 5%) licenses certain intellectual property to third party manufacturers which gives the manufacturers rights to intellectual property including the right to either manufacture or include the intellectual property in their products for resale.
Headquartered in San Jose, CA. The company has several offices in United States (Colorado, Minnesota, Texas and Washington), Europe (Belgium, France, Germany, Switwerland, and UK), and Asia Pacific including Australia, Japan, Korea, Malaysia and Singapore.
The company's revenue sources are spread through major regions. The US market accounts for nearly 60% of the revenue, while the Europe provides more than 30% of revenue, and the Asia Pacific region supplies nearly 10% of revenue.
Sales and Marketing
The company utilizes distributors, VARs and DMRs in sales process. Its reseller program provides channel partners the option of purchasing products directly or through distribution channels and provides them access to a more comprehensive product line. Additionally, the company sell directly to multiple large corporate entities and government agencies.
The company sells products to several OEM customers that resell hardware products under their own brand names and typically assume responsibility for product sales, end user service and support. The company also licenses softwares to certain OEM customers that include this software in their own brand name products.
The company relies on five customers for nearly 25% of its sales.
The company, for the year ended 2020, had a revenue of $402.9 million, a minor increase from the previous year. Product revenue increased $6.5 million, or 3%, as compared to fiscal 2019. Primary storage systems represented $18.3 million of the increase driven by growth across both the company's Media & Entertainment and government vertical markets.
For the year ended 2020, the company had a net loss of $5.2 million, an 88% improvement compared to the previous year.
The company's cash for the year ended 2020 was $12.3 million. Operating activities used $1.2 million. Investing activities used another $4.6 million, while financing activities generated $1.3 million.
Quantum Corporation's strategy is to offer the broadest physical security server and storage portfolio available from any single supplier, with solutions designed and optimized for surveillance and physical security workloads, providing high performance and density, resulting in cost-effective solutions.
As a part of its business strategy, Quantum Corporation has in the past and may make acquisitions in the future, subject to certain debt covenants. For example, in March 2020, the company acquired the ActiveScale object storage business from Western Digital Technologies, Inc. The company may also make significant investments in complementary companies, products, or technologies.
Mergers and Acquisitions
In March 2020, Quantum Corporation announced it has completed its acquisition of the ActiveScale™ object storage business from San Jose-based, Western Digital Technologies, Inc., a subsidiary of Western Digital Corp. The acquisition expands Quantum's leadership role in storing and managing video and other unstructured data using a software-defined approach.
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