Storage products manufacturer
Quantum Corp. warned that its revenue for its first quarter, ending July 1, is going to be lower than expected. Quantum makes network backup products including digital linear tape drives and automated tape library systems. They also own Snap Appliances, which make network attached storage products.
The company indicated that its earnings will be somewhere in the range of US$265 to $275 million, compared with $309 million for the previous quarter. Earnings per share are expected to range from $.10 to $.12 diluted, excluding special charges.
Quantum chairman and CEO Michael Brown admitted that his company “has been more significantly affected” by the current economic slowdown than was first anticipated. Brown cited weakness in both the U.S. and European markets as the cause for Quantum’s weak earnings.
The company described quarterly revenues in its DLTtape Group and ATL/Enterprise Solutions Group as declining on a sequential basis from the prior quarter. The ATL/Enterprise Solutions Group is expected to be particularly hard-hit because it sells high-end storage products. Many companies have put off or delayed the purchase of such products as they ride out the current economic turbulence.
Quantum’s Snap Appliances subsidiary is expected to see revenues remain flat from the previous quarter, but there’s good news here. Quantum notes that such figures still represent year-over-year growth of 55 percent.