Quantum Reports Q4

SAN JOSE, Calif. -- Quantum Corp. (NYSE:QTM), the leading global specialist in backup, recovery and archive, today announced that revenue for its fiscal fourth quarter (FQ408), ended March 31, 2008, was $229 million and that revenue for the full fiscal year 2008 (FY08) was approximately $976 million, representing respective declines of 17 percent and 4 percent over the comparable periods for fiscal year 2007 (FY07).[1] In part, these declines reflected the company’s strategy of shifting its sales mix toward higher margin opportunities – this shift resulted in a year-over-year increase of 4 percentage points in its GAAP gross margin rate and an increase in its branded share of non-royalty revenue to 66 percent in FQ4’08 from 57 percent in the same period of FY07.

The company reported a GAAP net loss of $15 million for FQ4’08, or 8 cents per share, a 2-cent improvement over the fiscal fourth quarter of 2007 (FQ4’07). This $15 million net loss included $11 million in amortization of intangibles and $4 million in stock-based compensation charges, and the net impact of these items reduced earnings per share on a diluted basis by approximately 8 cents.

Quantum generated $32 million in cash from operations for the quarter and paid down another $20 million of debt related to the acquisition of ADIC.

Additionally, Quantum today announced general availability of its DXi7500 enterprise disk backup system with de-duplication and replication. (See release titled, “Quantum Announces General Availability of Industry’s First Solution Designed to Match De-duplication Functionality to Specific Backup Needs.”)

“Over the past year, we’ve made significant progress in improving our financial model and further refining our strategic focus to drive greater growth potential,” said Rick Belluzzo, chairman and CEO of Quantum. “Both our operating income and net income for FY08 were the highest they’ve been in five years, when intangible amortization, stock-based compensation, acquisition-related expenses and debt refinancing costs are excluded."Quantum Corp.