Slide 1: Quantum Investor Presentation September 2016
QUANTUM INVESTOR PRESENTATION September 2016 Exhibit 99.1
Slide 2: Safe Harbor
Safe Harbor Safe Harbor Statement “Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995: This presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, without limitation, statements
Slide 3: Key Investment Highlights
Key Investment Highlights Profit/Cash-Generating Data Protection Portfolio, Install Base and Channel High-Growth Scale-out Storage Portfolio 36-Year Storage Specialist and Leader in Key Markets Scalable Financial Model Providing Significant Leverage
Slide 4: Who We Are / What We Do
Who We Are Enable customers to capture, share and preserve digital assets over their entire lifecycle, creating new opportunities to maximize data’s business value What We Do A leading expert in highly scalable storage, data protection and archive focused on the most demanding workflow challenges
Slide 5: A Rich History in Storage
A Rich History in Storage 2014 HDD devices (Sold business in 2001) Tape-based data protection Disk-based data protection systems High-performance storage & data mgmt. software (Origins from 2000) Cloud-based storage services Multi-tier storage solutions for end-to-end workflows 1994 2002 2006 2012 1
Slide 6: Quantum's Business Today
Quantum’s Business Today High-performance, multi-tier storage solutions for enabling line-of-business creativity, productivity, and efficiency WORKFLOW STORAGE Highly efficient and fast systems for protecting an organization’s critical operational data DATA BACKUP Massively scalable storage systems
Slide 7: Quantum Overview
Quantum Overview FY16 Revenue: $476M Data Protection 64% Scale-out Storage 27% Royalty 9% Non-royalty: 90% branded, 10% OEM 60% North America, 30% EMEA, 10% APAC Fiscal Q1’17 results Total revenue of $116M, up 5% Y-Y Scale-out storage revenue grew 11% Y-Y (20th consecutive quarter of Y-Y growth) Dat
Slide 8: Proven Market Leader
Proven Market Leader 100,000+ customer deployments Awards and other honors
Slide 9: Tightly Integrated with the Ecosystem
Tightly Integrated with the Ecosystem
Slide 10: How Quantum Solves Key Customer Challenges
How Quantum Solves Key Customer Challenges Data growth, particularly unstructured data (e.g., video, audio, imaging, sensors) Increased strategic value of data Insight, discovery, intelligence Repurposing/remonetizing Anytime/anywhere access Collaboration Need for workflow-optimized solutions Desire
Slide 11: Quantum's Addressable Market
Quantum’s Addressable Market Data Protection: 2.2% CAGR (Billions) 2018 Scale-out Storage: 12.2% CAGR3 (Tape: $1.6)2 (Tape: $1.5) (Dedupe: $3.3)1 Overall CAGR: 10.1% (Dedupe: $3.8) Sources: 1 IDC 2 IDC, Santa Clara Consulting Group, Quantum 3 IHS Technology, Intersect360, Coughlin Associates 2014
Slide 12: Scale-out Storage Solutions
Scale-out Storage Solutions
Slide 13: Scale-out Storage: Key Metrics
Scale-out Storage: Key Metrics FY16 revenue of $126.5M, up 23% Y-Y 34% Y-Y growth from core deals below $1M 600+% Y-Y growth in video surveillance revenue 45% Y-Y growth in revenue from unstructured data archives for technical workflows 100,000+ file system licensees/users Average win rate in 70th p
Slide 14: Scale-out Storage: The Demanding Markets We Serve
Oil & Gas Genomics Geospatial Scientific Research Government Video Surveillance Network Forensics Corporate Video Sports Video M&E TECHNICAL WORKFLOWS INTELLIGENCE & SURVEILLANCE VIDEO PRODUCTION INCOMING DATA DATA SHARING/ COLLABORATION RETENTION OF DATA Scale-out Storage: The Demanding Markets We
Slide 15: Scale-out Storage: Attributes Required for Success
INCOMING DATA DATA SHARING/ COLLABORATION RETENTION OF DATA INTELLIGENCE & SURVEILLANCE VIDEO PRODUCTION TECHNICAL WORKFLOWS Scale-out Storage: Attributes Required for Success © 2016 Quantum Corporation
Slide 16: The Opportunity in Video Surveillance
Changing camera technology Increasing retention times More sophisticated analytics The Opportunity in Video Surveillance (Billions) $5.8 18% CAGR Source: IHS Technology Market Trends Storage Revenue
Slide 17: Multi-Tier Scale-out Storage Portfolio
Multi-Tier Scale-out Storage Portfolio that Delivers on All Attributes LOW-COST CAPACITY PERFORMANCE Artico Archive Appliance STORNEXT DATA MANAGEMENT STORNEXT DATA MANAGEMENT StorNext AEL (Tape) Lattus Object Storage Q-Cloud Archive/Vault Xcellis Workflow Storage QXS Hybrid Storage ACCESS
Slide 18: Scale-out Storage: Quantum Growth Drivers
Scale-out Storage: Quantum Growth Drivers Extend M&E leadership (e.g., corporate video, sports video, ad agencies) Build on video surveillance momentum Capitalize on unstructured data archive opportunities in technical workflows Leverage data protection assets and unified sales organization Further
Slide 19: Scale-out Storage Use Case: 4K High-resolution Workflow
Scale-out Storage Use Case: 4K High-resolution Workflow CUSTOMER NEED Meet demanding 4K content workflow QUANTUM SOLUTION StorNext high-performance primary storage WHY QUANTUM Superior technology – performed flawlessly in POC, including capabilities to edit in 8K, while scale-out NAS competition cou
Slide 20: Scale-out Storage Use Case: Video Surveillance
Scale-out Storage Use Case: Video Surveillance CUSTOMER NEED Law enforcement pilot program equipped 50 police officers with on-body cameras, creating requirement for large video storage QUANTUM SOLUTION StorNext primary storage and tape archive WHY QUANTUM Ability to provide complete tiered storage
Slide 21: Scale-out Storage Use Case: Corporate Video Management
Scale-out Storage Use Case: Corporate Video Management CUSTOMER NEED Major consumer products company with extensive video content struggling with incomplete backups, system crashes, and hard-to-access archives QUANTUM SOLUTION StorNext high-performance primary storage and tape archive WHY QUANTUM Sy
Slide 22: Data Protection Solutions
all a pall! i DATA PROTECTION SOLUTIONS
Slide 23: Data Protection: Key Metrics
Data Protection: Key Metrics FY16 revenue of $306M (excludes royalty revenue) 220 new DXi customers 300 new branded midrange/enterprise tape customers 100,000+ deployments Average win rates over 75% for tape automation and mid-60th percentile for DXi Average branded non-GAAP product gross margins Ta
Slide 24: Data Protection: Increased Complexity and Demands on Customers
Data Protection: Increased Complexity and Demands on Customers Protection of Increasingly More Unstructured Data, in Addition to Structured Data Protection of Heterogeneous Assets – Physical and Virtual Intelligent Storage Tiering – Tape, Disk, Object Storage and Cloud Anytime, Anywhere Data Access
Slide 25: Data Protection: Products
25-80 slots Scalar i40/i80 40-80 slots Scalar i500 10-7000 slots Scalar i6000 1-24TB DXi V-Series 5-135TB DXi4700 17-544TB DXi6900 DXi Disk Deduplication Data Protection: Products Q-Cloud Protect Devices and Media Scalar Tape Automation
Slide 26: Data Protection: Driving Profit/Cash
Data Protection: Driving Profit/Cash Leverage tape market share leadership Increase DXi customer base Expand DXi go-to-market strategic partnerships Leverage unified sales organization Take advantage of growing cost issues with traditional primary storage
Slide 27: Data Protection Use Case: Virtual Machine Data Backup and Disaster Recovery
Data Protection Use Case: Virtual Machine Data Backup and Disaster Recovery Customer Need State health department faced with significant data growth and challenges of large VMware adoption Quantum Solution DXi appliances Veeam backup software Why Quantum Positive experience with earlier generation D
Slide 28: Financials
FINANCIALS = i>
Slide 29: Revenue Breakdown
Revenue Breakdown (millions of $) Royalty Tape Scale-out Storage DXi
Slide 30: Scalable Financial Model with Significant Leverage
Scalable Financial Model with Significant Leverage Notes: 1 Gross Margin Rate, Operating Expenses, Operating Income and Net Income are non-GAAP figures 2 In the third quarter of FY16, Quantum repurchased approximately $85M of its convertible debt using $16M in cash and $69M of its revolving credit f
Slide 31: Additional Information and Where to Find it
Additional Information and Where to Find it Quantum Corporation (the “Company”), its directors and certain executive officers will be participants in the solicitation of proxies from stockholders in connection with the Company’s Annual Meeting of Stockholders for the fiscal year ended March 31, 2016
Slide 32: Quantum
Quantum.