Business
Quantum Announces $0.10 GAAP EPS for the Third Quarter of Fiscal 2020
Adjusted Net Income of $7.3 Million more than doubles; Adjusted Net Income Per Share doubles to $0.16 and Adjusted EBITDA Increases 30% to $14.7 Million
About this update from Quantum Corporation
[{"type":"text","content":"Adjusted Net Income of $7.3 Million more than doubles; Adjusted Net Income Per Share doubles to $0.16 and Adjusted EBITDA Increases 30% to $14.7 Million\n Receives Listing Approval; Company to begin trading on Nasdaq under the ticker \"QMCO\" on February 3, 2020\n\n\nSAN JOSE, Calif., Jan. 29, 2020 /PRNewswire/ -- Quantum Corporation (OTC: QMCO) today announced financial results for its third fiscal quarter ended December 31, 2019.\n\n \n \n\n \nNasdaq Listing:\nQuantum has received approval to list the Company's common stock on the Nasdaq Global Market. Management expects shares of the Company's common stock will begin trading on The Nasdaq Stock Market on Monday, February 3, 2020 under the ticker \"QMCO.\"\nHighlights: Third Quarter of Fiscal 2020 vs. Prior-Year Third Quarter\nGross margins increased 340 basis points to 45.6% Net Income increased by $9.0 million to $4.7 million Adjusted Net Income increased by $3.9 million to $7.3 million Adjusted EBITDA increased by $3.6 million to $14.7 million Revenue increased 1% to $103.3 million Research and development investments increased 18%Jamie Lerner, Chairman and CEO commented, \"We continued to advance our strategic transformation, focusing on margin expansion and profitability as we reposition Quantum as an innovator, poised to solve the biggest challenges around video and video-like data.\"\nThe strong third fiscal quarter gross margin of 45.6% reflected a favorable sales mix and Quantum's focus on a value-selling approach. Excluding the contribution from royalty revenue, the Company's gross margin reached 43.4%, compared to 39.3% in the year-ago quarter, demonstrating the increased value it is providing to customers. This translated to a significant improvement in operating margin and a return to GAAP profitability, with $4.7 million in net income, compared to a net loss of $4.3 million in the third fiscal quarter last year. Year-to-date, Quantum's gross margin was 43.3% compared to 41.7%, an improvement of 160 basis points.\n\"This return to profitability validates the success of our transformation and provides us momentum as we uplist to the Nasdaq,\" Lerner continued.\nQuantum achieved its profitability guidance for the quarter, despite generating revenues that were lower than expectations, primarily as a result of the volatility inherent to its hyperscaler business, where...