Fri, Sep 6, 10:03 AM (130 days ago)
Quantum Corporation's 10-Q for the quarter ending December 31, 2023, reports significant financial challenges. Total revenue fell to $71.9 million, a 37% decrease year-over-year, driven by a 52% drop in product sales due to reduced demand from hyperscale customers and declines in the linear-tape open media market. Gross profit decreased to $29.2 million, with a gross margin improvement to 40.6% attributed to better product mix and operational efficiencies. Operating expenses totaled $35.4 million, down 8%, but restructuring costs increased. The company recorded a net loss of $9.9 million, compared to a profit of $113,000 in the prior year. Cash flow from operations was negative at $20.7 million, reflecting ongoing liquidity pressures, exacerbated by high debt levels of $87.3 million in term loans and $32 million in credit facilities. The company has identified material weaknesses in internal controls, particularly related to revenue recognition and warrant classification. Future operations may be impacted by ongoing macroeconomic uncertainties, including inflation and supply chain issues.