Complete data analysis of good business: Quantum Corp (NASDAQ: QMCO)

On Friday, Quantum Corp (NASDAQ: QMCO) stock plunged -1.32% and closed at 4.48. The stock opened the session at $4.46 and touched its highest price point at $4.54. Its recent trading capacity is 167389 shares versus to its average trading volume of 505851 shares. The company stock lowest price point for the session stood at $4.41.

Quantum Corporation (QMCO) recently reported financial results for its fiscal fourth quarter and year ended March 31, 2020.

Fiscal 2020 Financial Summary

Revenue was $402.9M

Gross margins increased 120 basis points to 42.8%

Total operating expenses reduced $21.1M, or 12%

GAAP Net loss narrowed to $5.2M, or $(0.14) per diluted share

Adjusted Net Income increased by $10.6M to $15.4M

Adjusted EBITDA increased by $13.3M to $45.9M

“Quantum’s technology is relied upon in disaster and crisis situations, and our solutions are core to the business continuity of many consumers, so we remain confident that we are positioned well to weather the delays and disruption we are experiencing,” continued Mr. Lerner. “Quantum is also playing a critical role in helping our consumers process and manage their video and unstructured data. The short-term impact of the pandemic has not slowed the growth of video. Our pipeline continues to expand and our value proposition remains compelling as we pursue our long-term strategy to provide technology solutions and services to help consumers capture, create and share digital content, and preserve and protect it for decades.”

Full Year Fiscal 2020 vs. Full Year Fiscal 2019

Revenue was $402.9M for fiscal 2020, contrast to $402.7M in fiscal 2019. The flat year over year performance was driven by a 3% increase in product revenue with growth in primary storage and devices and media partially offset by a decline in secondary storage systems. Strength in products was offset by modest declines in services primarily Because of reduced support renewals from our legacy backup consumers, and royalty driven by overall declines in market unit volumes as the primary use of tape transitions from backup to archive implementations.

Gross profit for fiscal 2020 was $172.5M, or 42.8% gross margin, contrast to $167.6M, or 41.6% gross margin, in fiscal 2019. Gross margins improved year over year across a wide range of products, primarily Because of reductions in cost of service and a sales mix weighted towards more profitable product lines.

Total operating expenses for fiscal 2020 were $151.3M, or 37.5% of revenue, contrast to $172.4M, or 42.8% of revenue, in fiscal 2019. Research and development expenses increased 13% to $36.3M for fiscal 2020 contrast to $32.1M in fiscal 2019. Selling, general and administrative expenses declined 15% to $114.0M for fiscal 2020 contrast to $134.7M for fiscal 2019Because of lower costs associated with the financial restatement and related activities, as well as lower operating expenses overall as a result of our efforts to streamline processes and reduce our facilities footprint.

Net loss was $5.2M, or $(0.14) per basic and diluted share, contrast to a net loss of $(42.8)M, or $(1.20) per basic and diluted share. Not Including non-recurring charges, stock compensation and restructuring charges, Adjusted Net Income was $15.4M, or $0.34 per diluted share for fiscal 2020, contrast to $4.8M, or $0.12 per diluted share, in fiscal 2019.

Adjusted EBITDA increased $13.3M to $45.9M for fiscal 2020, contrast to $32.5M in fiscal 2019.

A reconciliation between GAAP and non-GAAP information is contained in the financial information below.  Additional information about Adjusted EBITDA and Adjusted Net Income appears at the end of this release.

Fourth Quarter of Fiscal 2020 vs. Prior-Year Quarter

Revenue was $88.2M for the fourth quarter of fiscal 2020, down 15% contrast to $103.3M in the year ago quarter and in-line with Quantum’s guidance. The revenue decline was driven by a 20% decrease in product revenue Because of reduced demand for secondary storage systems as a result of the COVID-19 pandemic as well as lower hyperscale revenue. Revenue in the fourth fiscal quarter of 2020 includes incremental contribution from the acquisition of the ActiveScale object storage business, which closed on March 17, 2020.

Gross profit in the fourth quarter of fiscal 2020 was $36.1M, or 40.9% gross margin, contrast to $42.7M, or 41.3% gross margin, in the year ago quarter. Gross margins contracted modestly year over year primarily Because of spreading fixed overhead costs over lower revenue.

Total operating expenses in the fourth quarter of fiscal 2020 were $33.5M, or 38% of revenue, contrast to $43.2M, or 41.8% of revenue, in the year ago quarter. Selling, general and administrative expenses declined 31% to $24.3M for the fourth quarter of fiscal 2020 contrast to $34.9M in the year ago quarter. Research and development expenses were $9.2M in the fourth quarter of fiscal 2020, up 14% contrast to $8.1M in the year ago quarter.

Net loss in the fourth quarter of fiscal 2020 was $3.8M, or ($0.10) per basic and diluted share, contrast to a Net loss of $9.4M, or ($0.26) per basic and diluted share, in the year ago quarter.

Not Including non-recurring charges, stock compensation and restructuring charges, Adjusted Net Loss in the fourth quarter of fiscal 2020 was $2.4M, or ($0.06) per diluted share, contrast to Adjusted Net Income of $2.3M, or $0.06 per diluted share, in the year ago quarter.

Adjusted EBITDA in the fourth quarter of fiscal 2020 reduced $5.7M to $5.4M, contrast to $11.1M in the year-before quarter.

Its earnings per share (EPS) expected to touch remained 88.50% for this year while earning per share for the next 5-years is expected to reach at 20.00%. QMCO has a gross margin of 42.80% and an operating margin of 5.20% while its profit margin remained -1.30% for the last 12 months.

Leave a Reply

Your email address will not be published. Required fields are marked *