Overland owner posts deeper loss on lower Q3 revenues

Sphere 3D, the owner of Overland Storage and Tandberg, and virtualization vendor in its own right, saw revenues decline and losses deepen in its third 2018 quarter.

The  company blamed inadequate supply of product to meet customer demand for the revenue decline. That led to an increase of approximately $5.7m in backlog orders.

This may also explain why operating expenses for the  quarter fell to $7.7m from $11.2m a year ago.

Revenues of $15.9m were 26.7 per cent down on the year-ago $21.7m ,while the loss of $4.9m was 40 per cent worse than the -$3.5m reported a year ago.

As the chart above shows there have been losses every quarter since the start of 2015 and the company gives no indication of when and how it might turn around its fortunes.

Product revenues were $13.9 million, compared to $19.6m for the third quarter of 2017, while service revenues were $2.0m compared to $2.1m a year ago,

Within the products category:

  • Disk systems revenue was $10.1m , compared to $14.1m a year ago.
  • Tape archive product revenue was $3.8 million compared to $5.5m last year. 

Disk systems is defined as RDX, SnapServer family, virtual desktop infrastructure, and Glassware-derived products.

We await the impending spin off of Overland Storage- Tandberg business to Silicon Valley Technology Partners (read our analysis of this complex exercise in financial engineering).

This will make Sphere 3D a sister company of Overland-Tandberg and not its owner. The reorg leaves it with Glassware and allied products – and debt-free.

Perhaps, as Overland, its prolonged wallow in red ink will come to an end … perhaps.

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