News

Tape revenue drop hits Quantum numbers

Simon Quicke

Disk systems and software got the nod from Quantum's management as the products that have helped increase second quarter revenues but the vendor reported net losses as sales didn't manage to quite deliver the profits.

The storage player reported a 5% increase in revenues to $147m with disk systems and software revenue up by 18% to $42m. But compared to the same quarter last year turnover dropped by 11% as a result of lower than expected OEM and branded tape automation revenue.

The vendor also reported a GAAP net loss of $12m for its second quarter of fiscal 2013, compared to $4m in the black for the same period last year.

"We are very please with our record results in disk systems and software, as these products are key to driving higher revenue growth and profit," said Jon Gacek, president and CEO of Quantum.

The vendor is also pinning some hopes on its Q-Cloud offering that provides backup and disaster recovery on a subscription.

"We believe the shortfall in tape revenue and impact on profits was largely due to the industry transitioning to the latest LTO generation technology. Nevertheless, as we begin the second half of the fiscal year, we are taking actions to reduce spending in certain areas so that we can continue to make the investments that best support our growth strategy," added Gacek.


Join the conversation Comment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.