Finance
Quantum Rides Scale-Out Storage Revenue to Operating Profit
Story Highlights
By Chris Tribbey
Scale-out storage, archive and data protection solutions company Quantum posted operating income of $2 million for its fiscal third quarter (ended Dec. 31) thanks to record revenue of $35.7 million for its scale-out storage offerings (up from $27.2 million a year ago), the company reported Jan. 28.
Overall, the company posted revenue of $128 million, thanks to an 18th consecutive quarter of year-over-year growth in revenue for its scale-out storage and related services. Royalty revenue was also up, more than half a million, to $11.3 million.
“For the fourth quarter, we will continue to focus on growing our run-rate scale-out revenue driven by expanding our media and entertainment, surveillance and technical workflow opportunities, and we will continue to work to close the mega deals in our sales funnel,” said Quantum president and CEO Jon Gacek. “In addition, similar to the third quarter, we will actively manage tape media revenue based on the pricing environment and optimize our activity for profit. We will also continue to manage our spending and our investments to achieve the right balance across our financial objectives.”
During the quarter, Quantum unveiled Xcellis workflow storage, the company’s next-gen, high-performance storage solution, which can be deployed either as a standalone system or as a storage component within other multi-tier storage environments. The quarter also saw Quantum expand its Q-Cloud offerings with the launch of Q-Cloud Vault, a service that lets users take advantage of low-cost public cloud storage for digital assets.
The company also announced that its SVP and CFO Linda Breard has resigned, with Chris Willis, VP of financial planning and analysis, stepping in to serve as interim CFO, while the company looks for a permanent replacement.
“Linda has been a valuable Quantum team member for the past 17 years and over that time, has made significant contributions and provided a leadership to the organization,” Gacek said in a financial call with investors. “We wish her well in her new endeavor.”
