Quantum Corporation (QTM) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $3.83 million, or $ 0.01 a share in the quarter, against a net loss of $11.23 million, or $0.04 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $5.97 million, or $0.02 a share compared with a net loss of $7.43 million, or $0.03 a share in the last year period. Revenue during the quarter grew 15.14 percent to $134.74 million from $117.02 million in the previous year period. Gross margin for the quarter expanded 160 basis points over the previous year period to 41.17 percent. Operating margin for the quarter period stood at positive 3.97 percent as compared to a negative 8.22 percent for the previous year period.
Operating income for the quarter was $5.35 million, compared with an operating loss of $9.62 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $7.49 million compared to operating loss of $5.82 million in prior year period.
"We began this fiscal year with a clear focus on delivering solid growth and profitability, and our results in the first two quarters demonstrate our strong execution and increasing momentum," said Jon Gacek, president and chief executive officer of Quantum. "For the first half of the fiscal year, weve increased total revenue by $23 million over the same period last year, growing scale-out storage by 34 percent and data protection - where the market remains challenging - by 3 percent. On this $23 million of additional revenue, we’ve improved net income by more than $20 million, reflecting the significant leverage our financial model provides as we grow.
For the third-quarter, Quantum Corp expects revenue to be in the range of $125 million to $130 million. The company projects diluted earnings per share to be in the range of $0.01 to $0.01 for the third-quarter.
Operating cash flow turns positive
Quantum Corp has generated cash of $2.58 million from operating activities during the first half as against cash outgo of $2.34 million in the last year period. The company has spent $1.25 million cash to meet investing activities during the first six months as against cash outgo of $1.72 million in the last year period.
The company has spent $5.67 million cash to carry out financing activities during the first six months as against cash outgo of $17.64 million in the last year period.
Cash and cash equivalents stood at $29.53 million as on Sep. 30, 2016, down 36.13 percent or $16.70 million from $46.23 million on Sep. 30, 2015.
Working capital increases
Quantum Corp has recorded an increase in the working capital over the last year. It stood at $30.12 million as at Sep. 30, 2016, up 10.79 percent or $2.93 million from $27.18 million on Sep. 30, 2015. Current ratio was at 1.17 as on Sep. 30, 2016, up from 1.13 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 41 days for the quarter from 102 days for the last year period. Days sales outstanding went down to 70 days for the quarter compared with 75 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 88 days for the previous year period. At the same time, days payable outstanding went down to 50 days for the quarter from 60 for the same period last year.
Debt comes down
Quantum Corp has recorded a decline in total debt over the last one year. It stood at $129.73 million as on Sep. 30, 2016, down 15.03 percent or $22.95 million from $152.68 million on Sep. 30, 2015. Total debt was 58.73 percent of total assets as on Sep. 30, 2016, compared with 50 percent on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
