Q1 2025 Quantum Corp Earnings Call Transcript
Key Points
- Quantum Corp (QMCO) finished Q1 2025 with $71.3 million in revenue, aligning with expectations.
- The company secured an agreement with lenders, increasing liquidity by over $25 million and restructuring existing debt.
- Momentum in deploying all-flash options across the portfolio, with notable deals closed shortly after launch.
- Several notable active scale wins, including a significant deal with an NBA team for over 10 petabytes of storage.
- Subscription ARR increased approximately 29% year over year, demonstrating progress in business transformation.
- Revenue decreased approximately 23% year over year, primarily due to the loss of the largest hyperscaler customer.
- GAAP net loss for the quarter was $20.8 million, significantly higher than the $9.1 million loss in the same quarter last year.
- Supply constraints impacted the ability to ship higher-margin products, resulting in increased order backlog.
- Non-GAAP gross margin decreased to 36.9% from 38.8% in the prior year, affected by lower-margin revenue mix and higher manufacturing costs.
- Elevated levels of one-time expenses, over $10.7 million, are expected to persist into Q2 2025.
Greetings. Welcome to Quantum Corporation's first quarter fiscal year 2025 financial results. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to Brian Cabrera, Quantum's Chief Administrative Officer. Thank you. You may begin.
Good afternoon, and thank you for joining today's conference call to discuss Quantum's first quarter fiscal 2025 financial results. I'm Brian Cabrera, Quantum's Chief Administrative Officer. Speaking first today is Jamies Lerner, our Chairman and CEO; followed by Ken Gianella, our CFO. We'll then open the call to questions from analysts.
Some of our comments during the call today may include forward-looking statements. All statements other than statements of historical fact should be viewed as forward looking, including any projections of revenues, margins, expenses, adjusted EBITDA, adjusted net income, cash flows or other financial, operational, or performance topics. These statements involve known and
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