Quantum has reported results for the fiscal first quarter 2018 ending Friday 30 June 2017, and provided guidance for the fiscal second quarter and full year. The first quarter 2018 financial results showed that total revenue increased to $116.9 million, up from $116.3 million. Branded revenue was $99.6 million, a 3 per cent increase, and scale-out tiered storage revenue was $33.7 million, up from $30.8 million. Total data protection revenue was $73.1 million, down from $76.9 million. The figures also showed $14.7 million in disk backup systems revenue, down from $21.5 million in the same quarter a year earlier which included a large, multi-million dollar deal. Royalty revenue was $10.0 million, up from $8.6 million. GAAP operating loss was $2.5 million, and non-GAAP operating income was $2.2 million compared to a loss of $1.8 million and income of $2.4 million, respectively.
Jon Gacek, president and CEO of Quantum, stated, ‘We continued to build on our momentum over the past year, growing total revenue year-over-year and generating non-GAAP net profit for the fifth consecutive quarter. Although the total revenue increase was slight, branded revenue grew 3 per cent. Other revenue highlights included year-over-year growth in scale-out tiered storage of 10 per cent and another strong quarter for branded tape automation, devices and media sales.
‘We also announced StorNext 6, a major new release of our industry-leading scale-out file system and data management software. StorNext 6 will enable us to deliver greater value to customers and, we believe, help further broaden our market reach, along with several new partnerships we announced during the quarter. They include ecosystem partnerships with Veeam in data protection, Veritone in artificial intelligence and DataFrameworks in data visualisation and management, as well as a strategic reseller partnership with Uniview in video surveillance.
‘As we look forward to the rest of fiscal 2018, we continue to be excited about the opportunity to grow total revenue, driven by expected scale-out tiered storage growth of at least 20 per cent for the year. At the same time, we remain focused on generating profit and cash and are confident in our ability to manage our debt ? including paying off our November 2017 convert ? with existing resources.
‘In addition, our newly constituted board of directors has launched a number of strategic initiatives and is working closely with the management team to implement various work streams, with the goal of improving long-term growth, recurring revenue and profitability. As part of this work, we are in the process of engaging a top-tier consulting firm which we expect will help the company to identify and deliver improvements in the operating characteristics of the business over the next 6 to 12 months, including accretive contributions to non-GAAP earnings. We plan to update investors on a quarterly basis regarding the progress of this important initiative.’
The company announced that Zhejiang Uniview Technologies, one of the top three video surveillance system manufacturers in China, has agreed to become a Quantum value-added reseller and strategic alliance partner. This alliance gives Quantum greater reach into what is expected to be the largest video surveillance market in the world by next year and also reflects the company’s focus on expanding its partnerships with global system integrators in video surveillance.