Quantum Corp (NYSE:QTM) revenue in 2Q2017 jumped 15% to $134.7 million over the comparable period, a year earlier. Jon Gacek, the CEO and President, reported that they commenced this fiscal with a clear objective on delivering robust profitability and growth. The performance in the first two quarters displays increasing momentum and strong execution.
For 1H2016, the company has upped revenue by $23 million compared to the same period, a year earlier. It reported growth of 34% in scale-out storage and data protection by 3%. The market of data protection remains challenging. On this additional revenue, the company have improved net income by over $20 million, highlighting the significant leverage that the financial model offers as it grows.
The CEO of Quantum added that as they begin 2H2017, they are focused on taking scale-out storage growth by extending entertainment and media leadership and expanding footprint in video surveillance and, also in technical workflows with bulky unstructured information archive requires. For data protection, the company is continuing to leverage technology leadership, channel and technology deals, and extensive customer base to generate cash and profit.
For 3Q2017, Quantum expects total revenue to come in between $125 million and $130 million. GAAP gross margin is expected to be around 41% to 43%. Interest expense is projected at $2.4 million and taxes at $400,000 for 3Q2017.
Quantum reported a new media reference system for visual effects and animation workflows that is made on the firm’s Xcellis™ high-performance storage. It overcomes the resource and time consuming challenge of moving content between editorial departments and animation. This is achieved over a network by enhancing storage abilities for both processes in a single shared environment, thus streamlining workflows and increasing overall productivity and efficiency.
The company launched the DXi6900-S, which has helped the clients to reduce power consumption by 50%, against competing deduplication appliances. It integrates the SSD technology to offer metadata storage and access. Therefore, the DXi6900-S radically speeds ingest, replication, read and space reclamation performance, enabling users to close all these tasks numerous times faster than with initial DXi® systems and other competitive products.