Quantum Corp. (QTM) saw its loss narrow to $1.91 million, or $0.06 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $52.88 million, or $1.59 a share. On the other hand, adjusted net income for the quarter stood at $1.58 million, or $0.05 a share compared with $6.20 million or $0.18 a share, a year ago. Revenue during the quarter went up marginally by 0.67 percent to $120.84 million from $120.03 million in the previous year period. Gross margin for the quarter contracted 216 basis points over the previous year period to 43.08 percent. Operating margin for the quarter period stood at positive 0.91 percent as compared to a negative 42.25 percent for the previous year period.
Operating income for the quarter was $1.09 million, compared with an operating loss of $50.71 million in the previous year period.
However, the adjusted operating income for the quarter stood at $4.17 million compared to $8.21 million in the prior year period. At the same time, adjusted operating margin contracted 339 basis points in the quarter to 3.45 percent from 6.84 percent in the last year period.
"Our solid fourth quarter results closed out a year of strong overall performance and execution," said Jon Gacek, president and chief executive officer of Quantum. "We generated year-over-year growth and significantly improved profitability in a year of ongoing industry disruption. One of the keys to this success was the fact that we grew scale-out tiered storage revenue for the ninth consecutive year, building on our leadership in traditional rich media markets and expanding our footprint in new verticals and use cases. In addition, despite continuing challenges in the data protection market, we turned around this part of our business in fiscal 2017, driving significant growth in disk backup systems and extending our position as the market leader in tape automation. From a product standpoint, we delivered innovative new solutions and features for scale-out tiered storage, disk backup and tape archive, including new ways to leverage flash technology and the cloud. Finally, we secured a large financing package that addresses our November 2017 convertible debt and provides a stable, more flexible capital structure over the next five years. All of this makes us well-positioned for further success in fiscal 2018 and beyond."
Operating cash flow turns positive
Quantum Corp. has generated cash of $8.91 million from operating activities during the year as against cash outgo of $11.72 million in the last year. The company has spent $21.99 million cash to meet investing activities during the year as against cash outgo of $3.62 million in the last year.
The company has spent $7.89 million cash to carry out financing activities during the year as against cash outgo of $18.72 million in the last year period.
Cash and cash equivalents stood at $12.96 million as on Mar. 31, 2017, down 61.74 percent or $20.91 million from $33.87 million on Mar. 31, 2016.
Debt comes down
Quantum Corp. has recorded a decline in total debt over the last one year. It stood at $127.86 million as on Mar. 31, 2017, down 5.27 percent or $7.11 million from $134.96 million on Mar. 31, 2016.
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