Overland has highlighted slowing sales in the data storagesector, in particular to its larger OEM customers, as it sunk to a net loss of$5.2m (£3.5m) for its second quarter to the end of December.
Sales at Overlanddeclined 15.2% year-on-year over the last three months of calendar 2008,hitting $28.9m, while sales to OEMs plunged 37% over the same period.
In an indication that things are getting worse, Overlandquietly announced a significant 10% pay cut to all employees and a 17%reduction in headcount as it targets around $14m of annual savings.
“The challenges we faced in the December quarter weresignificant,” said Vern LoForti, Overland president. “We were impacted by acombination of the difficult worldwide economic conditions and concerns in thefirst two months of the quarter about our ability to obtain financing.”
Amidst declining sales across the business, the one brightspot was services and spares revenues, which grew by over 24% as customers grewincreasingly keen to milk their investments for longer.
Meanwhile, the vendor has also unveiled an ‘aggressive’ enduser and channel sales campaign for its SMB SNAPServer portfolio after rival NetAppdiscontinued support on its competing S family/S550 gear earlier in the week.
“It is frankly stunning that NetApp would want to effectivelydisenfranchise its customer base by discontinuing this range,” said Overland northern EMEA sales director David Spate. “Weare urging any channel partners who resell the range to contact us as we havein SNAPServer a highly cost-effective, scalable and future proofed product.”
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