Quantum Corporation · NASDAQ:QMCO
Quantum — Investor Presentation (February 2021)
27 slides from Quantum's investor presentation, Feb 3, 2021
Slide 1: Investor Presentation
Investor Presentation NASDAQ: QMCO February 2021 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement. This presentation contains forward-looking statements including, without limitation, statements about the Company’s plans, strategies, priorities and prospects including the Company’s transformation initiatives, capital structure and go to market strategi
Slide 3: Today's Presenters
Today’s Presenters Jamie Lerner Chairman and CEO Previous Affiliations: Pivot3, Seagate Technology, Cisco, CITTIO, Platinum Technology, Andersen Consulting Mike Dodson Chief Financial Officer Previous Affiliations: Mattson Technology, ESI, Novellus, DDi Corp., and Ernst & Young
Slide 4: About Quantum
About Quantum (NASDAQ: QMCO) …ON QUANTUM The biggest blockbusters are created… The world’s most recognized brands are built… Exploration and adventure happens… Critical Infrastructure is protected… Our planet is studied… Nations are secured… Machine learning algorithms are developed… Breakthroughs a
Slide 5: By 2025 80% of Data is Unstructured; Video and Digital Images
By 2025 80% of Data is Unstructured; Video and Digital Images Source: IDC Datasphere reports
Slide 6: The Lifecycle of Video and Unstructured Data
The Lifecycle of Video and Unstructured Data CAPTURE 1 EDGE ANALYZE / MODIFY 2 ARCHIVE 3 CORE / CLOUD CORE / CLOUD Editors Analysts Data Scientists Doctors Researchers Production Process Forever archive Forever Archive
Slide 7: Leader in Video and Unstructured Data Solutions
Leader in Video and Unstructured Data Solutions Flash Disk Cloud Storage Hardware High speed file and block software Storage Software Object software with GEO-spread protection Gain Insight Data Management and Orchestration Predictive data placement Search Quantum Service Delivery Platform QaaS Mana
Slide 8: Leader in Video and Unstructured Data Solutions
Leader in Video and Unstructured Data Solutions Quantum Services Analyze & Enrich Protect & Preserve CatDV Asset Management Platform StorNext File System ATFS NAS Platform ActiveScale Object Storage Scalar Tape Storage DXi Backup Appliances Store, Classify & Manage Surveillance, IoT, Edge Appliances
Slide 9: New Products Introduced in Fiscal Q3 2021
New Products Introduced in Fiscal Q3 2021 INTRODUCED ATFS Easy to use and deploy, cost-effective NAS platform that offers visibility into data via integrated data classification. INTRODUCED STORNEXT 7 Introduced file system pools to automate data movement between NVMe and HDD storage, and simplified
Slide 10: CatDV Asset Management and AI Analytics Platform
CatDV Asset Management and AI Analytics Platform Adds AI analytics for data enrichment, to unlock business value in unstructured data. Adds growing, profitable software business unit. Will expand market reach with integrated product offerings, drive scale with Quantum sales, marketing, and developme
Slide 11: Industry Leaders Driving Next Phase of Growth
Industry Leaders Driving Next Phase of Growth Brian Pawlowski Chief Development Officer Came from Sun, NetApp, and Pure Storage Rick Valentine Sr. VP & Chief Customer Officer Came from Silver Peak and Symantec/Veritas Henk Jan Spanjaard Area VP, Sales, EMEA Came from NetApp, Imperva, and DriveScale
Slide 12: Hyperscale and Web Scale Unstructured Data Archives
Hyperscale and Web Scale Unstructured Data Archives aws Microsoft HE Micros @ Apple Google facebook NETFLX Linked} Shutterfly ay Y oe pe bradStreet ciena merck LNs. Fortune 2000 N EB Ao - and services / y Significant growth opportunity to provide cold storage infrastructure to world’s largest hypers
Slide 13: Tape Has Emerged as Deep Archive Technology for Public Cloud
Tape Has Emerged as Deep Archive Technology for Public Cloud 20+ Exabytes deployed 3.7 Miles of hardware 3 Hyperscaler customers #1 In this market Backup tape market $ Hyperscaler tape market New market for tape emerged: Tape as deep archive technology for public cloud Notes: Source: IDC for histori
Slide 14: Go-To-Market Transformation
Go-To-Market Transformation Storage Software Storage Hardware Data management and orchestration Americas EMEA APAC M&E Surveillance Autonomous / IoT Government Life Sciences Research Cloud Providers Backup Expand Solution Set Expand Geographically Expand into Adjacent Markets Market & Geographical E
Slide 15: Driving the Next Phase of Transformation
Driving the Next Phase of Transformation Financial Outcomes Metric FY’20* Future % Recurring Revenue 41% 70% Gross Margin 43% 60% OpEx % of Revenue 33% 30% Adjusted EBITDA $45.9M +3X Adjusted EPS $0.34 +6X *Year ending March 31, 2020 TAM Expansion Next gen file services outside of M&E: Healthcare, l
Slide 16: Financials
NASDAQ: QMCO Financials
Slide 17: Fiscal Q3 2021 Financial Results
Fiscal Q3 2021 Financial Results ($ in millions, except per share amounts) Q3'20 Q4’20 Q1'21 Q2'21 Q3'21 Sequential Change Revenue $103.3 $88.2 $73.3 $85.8 $98.0 14.2% Gross margin 46.6% 40.9% 42.2% 45.1% 43.2% (200) bps Net income (loss) $4.7 ($3.8) ($10.7) ($4.6) ($2.7) $1.9 Basic net income (loss
Slide 18: Revenue Growth Across All Product Categories
Revenue Growth Across All Product Categories
Slide 19: Balance Sheet as of December 31st, 2020
Balance Sheet as of December 31st, 2020 As Reported Pro Forma Q3'21 Adjustments (+ / −) Q3'21 Cash and Cash Equivalents $17.4 − $17.4 Accounts Receivable $69.4 − $69.4 Net Inventory $56.9 − $56.9 Accounts Payable $30.0 − $30.0 Deferred Revenue $110.0 − $110.0 Long-Term Debt(1) $180.1 ($80.2) $99.9 A
Slide 20: Forecasted Fiscal Year 2021 Cash Flow
Forecasted Fiscal Year 2021 Cash Flow ($ in millions) ~$9.6mm of annual interest savings (~$1.6mm savings for the current fiscal year)(1) Notes: Assumes $90.0 million offering with net proceeds of $84.2 million to partially payoff the Senior Secured Term Loan. Quantum can payoff up to 50% of the out
Slide 21: Three to Five Year Financial Model
Three to Five Year Financial Model Metric Past(1) Current(1) Future Revenue Mix Product Sales Recurring Revenue 63% 37% 59% 41% 30% 70% Gross Margin 42% 43% 60% Total Opex as % of Revenue Research and Development Sales and Marketing General and Administrative 40% 9% 20% 11% 33% 9% 15% 9% 30% 9% 13%
Slide 22: Capital Structure: Current Arrangements and Next Steps
Capital Structure: Current Arrangements and Next Steps $45M revolving credit line $185M Term Debt Senior secured term loan due December 27, 2023 12% interest rate $5.6M payment per quarter Covenant waiver through March 31, 2021 Defers annualized amortization payments through December 2020 $10M Paych
Slide 23: Fiscal Q4 Outlook and Guidance
Fiscal Q4 Outlook and Guidance Revenue: $98M +/- $3M Non-GAAP Adjusted Net Income/Loss: Breakeven +/- $1M Adjusted Earnings/Net Loss per Share: Breakeven +/- $0.02 per share Adjusted EBITDA: $9M +/- $1M
Slide 24: Appendix
NASDAQ: QMCO Appendix
Slide 25: Reconciliation of GAAP and non-GAAP Results
Reconciliation of GAAP and non-GAAP Results ($ in 000s, except per share amounts) Q3'20 Q4’20 Q1'21 Q2'21 Q3'21 Net income (loss) $4,749 ($3,837) ($10,736) ($4,592) ($2,669) Interest Expense $6,425 $6,272 $6,437 $7,578 $7,808 Provision (benefit) for income taxes ($110) $332 $419 $202 $256 Depreciati
Slide 26: Reconciliation of GAAP and non-GAAP Results
Reconciliation of GAAP and non-GAAP Results ($ in 000s, except per share amounts) Q3'20 Q4’20 Q1'21 Q2'21 Q3'21 Net income (loss) $4,749 ($3,837) ($10,736) ($4,592) ($2,669) Restructuring charges ($64) $2 $1,052 $1,585 $200 Loss on debt extinguishment − − − − − Stock-based compensation expense $2,05
Slide 27: Quantum.
Quantum. CREATE. INNOVATE. PROTECT. ON QUANTUM.