Quantum Corp manages a little growth spurt

Quantum Corporation has recorded revenue growth and reduced losses for its second fiscal 2020 quarter as it prepares for a return to a major stock exchange listing.

The tape and video file workflow storage supplier grew revenue 18 per cent to $105.8m and reduced losses from $21.6m to $2.3m.

The company forecasts $106m- $112m for the December quarter, which is typically its strongest quarter. For the full fiscal year Quantum expects $424m-$430m revenue. At its peak in fiscal 2007, the company posted $1bn revenue.

Jamie Lerner, CEO, said in a prepared quote: “Our strategic transformation accelerated in the second quarter as we reported double-digit revenue growth, margin expansion, and excluding non-recurring items, continued reductions in operating expenses, all of which led to continued profitability.”

He emphasised the company’s video file workflow storage focus: “We are well-positioned as a recognised industry leader in the storage and management of video and video-like data, and this accelerating trend should support future profitable growth for Quantum.”

Quantum sees growth at last

Last quarter Quantum emerged from accounting hell with restated quarterly SEC reports after an 18-month investigation to rectify accounting mistakes made by previous management. During this 18-month period it changed its CEO three times, lost an NYSE listing and came under attack from activist investor VIEX.

The business appears to returning to health but there is a long way to go. Cash and cash equivalents were $6m at quarter end, compared to $10.8m six months ago. Outstanding long-term debt was $153.6m. 

Quantum has recruited Regan MacPherson as chief legal and compliance officer to help prepare it for a major public stock exchange re-listing.