☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Quantum Corporation
|
(Exact name of registrant as specified in its charter)
|
Delaware
|
|
94-2665054
|
||
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
||
|
|
|
||
224 Airport Parkway
|
Suite 550
|
|
|
|
San Jose
|
CA
|
|
95110
|
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
(408
|
)
|
944-4000
|
Registrant's telephone number, including area code
|
|
(Former name, former address and former fiscal year, if changed since last report)
|
Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value per share
|
|
QMCO
|
|
OTC Markets
|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
|
|
|
|
|
x
|
Yes
|
¨
|
No
|
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
|
|
|
|
|
x
|
Yes
|
¨
|
No
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
Non-accelerated filer
|
x
|
Smaller reporting company
|
o
|
|
|
Emerging growth company
|
o
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
|
|
|
||
o
|
|
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
|
|
|
|
|
o
|
Yes
|
x
|
No
|
|
|
Page
|
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 6.
|
||
|
|
|
|
|
December 31, 2019
|
|
March 31, 2019
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
7,542
|
|
|
$
|
10,790
|
|
Restricted cash
|
897
|
|
|
1,065
|
|
||
Accounts receivable, net of allowance for doubtful accounts of $264 and $68 as of December 31, 2019 and March 31, 2019, respectively
|
74,877
|
|
|
86,828
|
|
||
Manufacturing inventories
|
25,172
|
|
|
18,440
|
|
||
Service parts inventories
|
18,935
|
|
|
19,070
|
|
||
Other current assets
|
8,451
|
|
|
18,095
|
|
||
Total current assets
|
135,874
|
|
|
154,288
|
|
||
Property and equipment, net
|
8,546
|
|
|
8,437
|
|
||
Restricted cash
|
5,000
|
|
|
5,000
|
|
||
Right-of-use assets, net
|
11,910
|
|
|
—
|
|
||
Other long-term assets
|
3,973
|
|
|
5,146
|
|
||
Total assets
|
$
|
165,303
|
|
|
$
|
172,871
|
|
Liabilities and Stockholders’ Deficit
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
44,643
|
|
|
$
|
37,395
|
|
Deferred revenue
|
74,616
|
|
|
90,407
|
|
||
Accrued restructuring charges
|
—
|
|
|
2,876
|
|
||
Long-term debt
|
1,650
|
|
|
1,650
|
|
||
Accrued compensation
|
14,772
|
|
|
17,117
|
|
||
Other accrued liabilities
|
16,338
|
|
|
29,025
|
|
||
Total current liabilities
|
152,019
|
|
|
178,470
|
|
||
Deferred revenue
|
35,349
|
|
|
36,733
|
|
||
Long-term debt, net of current portion
|
152,414
|
|
|
145,621
|
|
||
Operating lease liabilities
|
10,045
|
|
|
—
|
|
||
Other long-term liabilities
|
10,943
|
|
|
11,827
|
|
||
Total liabilities
|
360,770
|
|
|
372,651
|
|
||
Commitments and contingencies (Note 6)
|
|
|
|
||||
Stockholders' deficit
|
|
|
|
||||
Common stock, $0.01 par value; 125,000 shares authorized; 39,855, and 36,040 shares issued and outstanding at December 31, 2019 and March 31, 2019, respectively
|
399
|
|
|
360
|
|
||
Additional paid-in capital
|
504,422
|
|
|
499,224
|
|
||
Accumulated deficit
|
(699,327
|
)
|
|
(697,954
|
)
|
||
Accumulated other comprehensive loss
|
(961
|
)
|
|
(1,410
|
)
|
||
Total stockholders’ deficit
|
(195,467
|
)
|
|
(199,780
|
)
|
||
Total liabilities and stockholders’ deficit
|
$
|
165,303
|
|
|
$
|
172,871
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Product
|
$
|
66,435
|
|
|
$
|
62,986
|
|
|
$
|
200,361
|
|
|
$
|
181,477
|
|
Service
|
32,892
|
|
|
34,097
|
|
|
98,673
|
|
|
101,013
|
|
||||
Royalty
|
3,988
|
|
|
4,896
|
|
|
15,700
|
|
|
16,913
|
|
||||
Total revenue
|
103,315
|
|
|
101,979
|
|
|
314,734
|
|
|
299,403
|
|
||||
Cost of revenue:
|
|
|
|
|
|
|
|
||||||||
Product
|
43,672
|
|
|
45,819
|
|
|
140,337
|
|
|
132,576
|
|
||||
Service
|
12,567
|
|
|
13,078
|
|
|
37,972
|
|
|
41,879
|
|
||||
Total cost of revenue
|
56,239
|
|
|
58,897
|
|
|
178,309
|
|
|
174,455
|
|
||||
Gross profit
|
47,076
|
|
|
43,082
|
|
|
136,425
|
|
|
124,948
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Research and development
|
9,325
|
|
|
7,907
|
|
|
27,058
|
|
|
24,030
|
|
||||
Sales and marketing
|
15,421
|
|
|
16,991
|
|
|
46,101
|
|
|
52,797
|
|
||||
General and administrative
|
10,719
|
|
|
13,481
|
|
|
43,623
|
|
|
46,943
|
|
||||
Restructuring charges
|
(64
|
)
|
|
1,227
|
|
|
1,020
|
|
|
5,428
|
|
||||
Total operating expenses
|
35,401
|
|
|
39,606
|
|
|
117,802
|
|
|
129,198
|
|
||||
Income (loss) from operations
|
11,675
|
|
|
3,476
|
|
|
18,623
|
|
|
(4,250
|
)
|
||||
Other income (expense), net
|
(611
|
)
|
|
3,846
|
|
|
(446
|
)
|
|
3,870
|
|
||||
Interest expense
|
(6,425
|
)
|
|
(6,238
|
)
|
|
(19,079
|
)
|
|
(14,809
|
)
|
||||
Loss on debt extinguishment, net
|
—
|
|
|
(5,033
|
)
|
|
—
|
|
|
(17,458
|
)
|
||||
Net income (loss) before income taxes
|
4,639
|
|
|
(3,949
|
)
|
|
(902
|
)
|
|
(32,647
|
)
|
||||
Income tax provision (benefit)
|
(110
|
)
|
|
337
|
|
|
471
|
|
|
739
|
|
||||
Net income (loss)
|
$
|
4,749
|
|
|
$
|
(4,286
|
)
|
|
$
|
(1,373
|
)
|
|
$
|
(33,386
|
)
|
Net income (loss) per share - basic
|
$
|
0.12
|
|
|
$
|
(0.12
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.94
|
)
|
Net income (loss) per share - diluted
|
$
|
0.10
|
|
|
$
|
(0.12
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.94
|
)
|
Weighted average shares - basic
|
38,134
|
|
|
35,552
|
|
|
36,828
|
|
|
35,500
|
|
||||
Weighted average shares - diluted
|
46,567
|
|
|
35,552
|
|
|
36,828
|
|
|
35,500
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
4,749
|
|
|
$
|
(4,286
|
)
|
|
$
|
(1,373
|
)
|
|
$
|
(33,386
|
)
|
Foreign currency translation adjustments, net
|
839
|
|
|
(157
|
)
|
|
449
|
|
|
(1,126
|
)
|
||||
Total comprehensive income (loss)
|
$
|
5,588
|
|
|
$
|
(4,443
|
)
|
|
$
|
(924
|
)
|
|
$
|
(34,512
|
)
|
Three Months Ended
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Loss
|
|
Total Stockholders' Deficit
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance, September 30, 2018
|
|
35,556
|
|
|
$
|
356
|
|
|
$
|
483,496
|
|
|
$
|
(684,257
|
)
|
|
$
|
(1,243
|
)
|
|
$
|
(201,648
|
)
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,286
|
)
|
|
—
|
|
|
(4,286
|
)
|
|||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(157
|
)
|
|
(157
|
)
|
|||||
Shares issued under employee incentive plans, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Warrants issued related to long-term debt, net
|
|
—
|
|
|
—
|
|
|
8,753
|
|
|
—
|
|
|
—
|
|
|
8,753
|
|
|||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
1,100
|
|
|
—
|
|
|
—
|
|
|
1,100
|
|
|||||
Balance, December 31, 2018
|
|
35,556
|
|
|
$
|
356
|
|
|
$
|
493,349
|
|
|
$
|
(688,543
|
)
|
|
$
|
(1,400
|
)
|
|
$
|
(196,238
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, September 30, 2019
|
|
36,717
|
|
|
$
|
368
|
|
|
$
|
502,398
|
|
|
$
|
(704,076
|
)
|
|
$
|
(1,800
|
)
|
|
$
|
(203,110
|
)
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,749
|
|
|
—
|
|
|
4,749
|
|
|||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
839
|
|
|
839
|
|
|||||
Shares issued under employee incentive plans, net
|
|
355
|
|
|
3
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Warrants exercised related to long-term debt, net
|
|
2,783
|
|
|
28
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
2,056
|
|
|
—
|
|
|
—
|
|
|
2,056
|
|
|||||
Balance, December 31, 2019
|
|
39,855
|
|
|
$
|
399
|
|
|
$
|
504,422
|
|
|
$
|
(699,327
|
)
|
|
$
|
(961
|
)
|
|
$
|
(195,467
|
)
|
Nine Months Ended
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Loss
|
|
Total Stockholders' Deficit
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance, March 31, 2018
|
|
35,443
|
|
|
$
|
354
|
|
|
$
|
481,610
|
|
|
$
|
(655,157
|
)
|
|
$
|
(274
|
)
|
|
$
|
(173,467
|
)
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33,386
|
)
|
|
—
|
|
|
(33,386
|
)
|
|||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,126
|
)
|
|
(1,126
|
)
|
|||||
Shares issued under employee incentive plans, net
|
|
38
|
|
|
1
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Warrants exercised related to long-term debt, net
|
|
75
|
|
|
1
|
|
|
175
|
|
|
—
|
|
|
—
|
|
|
176
|
|
|||||
Warrants issued related to long-term debt, net
|
|
—
|
|
|
—
|
|
|
8,753
|
|
|
—
|
|
|
—
|
|
|
8,753
|
|
|||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
2,818
|
|
|
—
|
|
|
—
|
|
|
2,818
|
|
|||||
Balance, December 31, 2018
|
|
35,556
|
|
|
$
|
356
|
|
|
$
|
493,349
|
|
|
$
|
(688,543
|
)
|
|
$
|
(1,400
|
)
|
|
$
|
(196,238
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, March 31, 2019
|
|
36,040
|
|
|
$
|
360
|
|
|
$
|
499,224
|
|
|
$
|
(697,954
|
)
|
|
$
|
(1,410
|
)
|
|
$
|
(199,780
|
)
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,373
|
)
|
|
—
|
|
|
(1,373
|
)
|
|||||
Foreign currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
449
|
|
|
449
|
|
|||||
Shares issued under employee incentive plans, net
|
|
1,032
|
|
|
11
|
|
|
(182
|
)
|
|
—
|
|
|
—
|
|
|
(171
|
)
|
|||||
Warrants exercised related to long-term debt, net
|
|
2,783
|
|
|
28
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
5,408
|
|
|
—
|
|
|
—
|
|
|
5,408
|
|
|||||
Balance, December 31, 2019
|
|
39,855
|
|
|
$
|
399
|
|
|
$
|
504,422
|
|
|
$
|
(699,327
|
)
|
|
$
|
(961
|
)
|
|
$
|
(195,467
|
)
|
|
|
Page
|
Note 1:
|
||
Note 2:
|
||
Note 3:
|
||
Note 4:
|
||
Note 5:
|
||
Note 6:
|
||
Note 7:
|
||
Note 8:
|
||
Note 9:
|
||
Note 10:
|
Level 1:
|
|
Unadjusted quoted prices in active markets for identical assets or liabilities.
|
Level 2:
|
|
Other than quoted prices that are observable in the market for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
Level 3:
|
|
Inputs are unobservable and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||
Americas
|
|
|
|
|
|
|
|
||||||||
Primary storage systems
|
$
|
17,748
|
|
|
$
|
9,488
|
|
|
$
|
45,088
|
|
|
$
|
28,377
|
|
Secondary storage systems
|
9,461
|
|
|
21,421
|
|
|
48,187
|
|
|
50,162
|
|
||||
Device and media
|
6,467
|
|
|
6,706
|
|
|
24,486
|
|
|
24,618
|
|
||||
Service
|
20,628
|
|
|
22,033
|
|
|
62,564
|
|
|
65,275
|
|
||||
Total revenue
|
54,304
|
|
|
59,648
|
|
|
180,325
|
|
|
168,432
|
|
||||
|
|
|
|
|
|
|
|
||||||||
EMEA
|
|
|
|
|
|
|
|
||||||||
Primary storage systems
|
5,384
|
|
|
4,944
|
|
|
12,852
|
|
|
15,887
|
|
||||
Secondary storage systems
|
11,233
|
|
|
11,161
|
|
|
28,967
|
|
|
27,809
|
|
||||
Device and media
|
7,933
|
|
|
3,494
|
|
|
18,106
|
|
|
13,870
|
|
||||
Service
|
10,063
|
|
|
9,421
|
|
|
29,114
|
|
|
27,910
|
|
||||
Total revenue
|
34,613
|
|
|
29,020
|
|
|
89,039
|
|
|
85,476
|
|
||||
|
|
|
|
|
|
|
|
||||||||
APAC
|
|
|
|
|
|
|
|
||||||||
Primary storage systems
|
2,555
|
|
|
1,456
|
|
|
7,210
|
|
|
6,094
|
|
||||
Secondary storage systems
|
4,612
|
|
|
3,287
|
|
|
11,127
|
|
|
9,497
|
|
||||
Device and media
|
1,042
|
|
|
1,029
|
|
|
4,338
|
|
|
5,163
|
|
||||
Service
|
2,201
|
|
|
2,643
|
|
|
6,995
|
|
|
7,828
|
|
||||
Total revenue
|
10,410
|
|
|
8,415
|
|
|
29,670
|
|
|
28,582
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Consolidated
|
|
|
|
|
|
|
|
||||||||
Primary storage systems
|
25,687
|
|
|
15,888
|
|
|
65,150
|
|
|
50,358
|
|
||||
Secondary storage systems
|
25,306
|
|
|
35,869
|
|
|
88,281
|
|
|
87,468
|
|
||||
Device and media
|
15,442
|
|
|
11,229
|
|
|
46,930
|
|
|
43,651
|
|
||||
Service
|
32,892
|
|
|
34,097
|
|
|
98,673
|
|
|
101,013
|
|
||||
Royalty*
|
3,988
|
|
|
4,896
|
|
|
15,700
|
|
|
16,913
|
|
||||
Total revenue
|
$
|
103,315
|
|
|
$
|
101,979
|
|
|
$
|
314,734
|
|
|
$
|
299,403
|
|
*
|
Royalty revenue is not allocable to geographic regions.
|
|
|
December 31, 2019
|
||
Contract liabilities (deferred revenue)
|
|
$
|
109,965
|
|
Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period
|
|
$
|
70,027
|
|
|
|
Current
|
|
Non-Current
|
|
Total
|
||||||
As of December 31, 2019
|
|
$
|
91,052
|
|
|
$
|
47,421
|
|
|
$
|
138,473
|
|
|
Warrant liability
|
||
As of March 31, 2018
|
$
|
272
|
|
Issuances
|
2,784
|
|
|
Settlements
|
(176
|
)
|
|
Changes in fair value
|
164
|
|
|
As of December 31, 2018
|
$
|
3,044
|
|
|
December 31, 2019
|
|
March 31, 2019
|
||||
Finished goods:
|
|
|
|
|
|
||
Manufactured finished goods
|
$
|
13,925
|
|
|
$
|
8,160
|
|
Distributor inventory
|
527
|
|
|
3,345
|
|
||
Total finished goods
|
14,452
|
|
|
11,505
|
|
||
Work in progress
|
885
|
|
|
107
|
|
||
Raw materials
|
9,835
|
|
|
6,828
|
|
||
Total manufacturing inventories
|
$
|
25,172
|
|
|
$
|
18,440
|
|
|
December 31, 2019
|
|
March 31, 2019
|
||||
Finished goods
|
$
|
13,735
|
|
|
$
|
13,437
|
|
Component parts
|
5,200
|
|
|
5,633
|
|
||
Total service inventories
|
$
|
18,935
|
|
|
$
|
19,070
|
|
Lease Cost
|
|
Three Months Ended December 31, 2019
|
|
Nine Months Ended December 31, 2019
|
||||
|
|
|
|
|
||||
Operating lease cost
|
|
$
|
1,259
|
|
|
$
|
3,835
|
|
Variable lease cost
|
|
109
|
|
|
321
|
|
||
Short-term lease cost
|
|
58
|
|
|
89
|
|
||
Total lease cost
|
|
$
|
1,426
|
|
|
$
|
4,245
|
|
Maturity of Lease Liabilities
|
|
Operating Leases
|
||
2020, excluding the nine months ended December 31, 2019
|
|
$
|
1,194
|
|
For the fiscal year ended March 31,
|
|
|
||
2021
|
|
4,319
|
|
|
2022
|
|
3,356
|
|
|
2023
|
|
2,443
|
|
|
2024
|
|
2,327
|
|
|
Thereafter
|
|
4,819
|
|
|
Total lease payments
|
|
$
|
18,458
|
|
Less: Imputed interest
|
|
(5,287
|
)
|
|
Present value of lease liabilities
|
|
$
|
13,171
|
|
|
|
December 31, 2019
|
||
Operating lease right-of-use asset
|
|
$
|
11,910
|
|
Other current liabilities
|
|
$
|
3,126
|
|
Operating lease liability
|
|
10,045
|
|
|
Total operating lease liabilities
|
|
$
|
13,171
|
|
Lease Term and Discount Rate
|
|
December 31, 2019
|
|
Weighted average remaining operating lease term (years)
|
|
5.12
|
|
Weighted average discount rate for operating leases
|
|
13.91
|
%
|
|
|
Severance and Benefits
|
|
Facilities
|
|
Total
|
||||||
Balance as of March 31, 2019
|
|
$
|
—
|
|
|
$
|
2,876
|
|
|
$
|
2,876
|
|
Restructuring costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Adjustments to prior estimates
|
|
—
|
|
|
1,020
|
|
|
1,020
|
|
|||
Cash payments
|
|
—
|
|
|
(3,659
|
)
|
|
(3,659
|
)
|
|||
Other non-cash
|
|
—
|
|
|
63
|
|
|
63
|
|
|||
Balance as of December 31, 2019
|
|
$
|
—
|
|
|
$
|
300
|
|
|
$
|
300
|
|
|
|
|
|
|
|
|
||||||
Balance as of March 31, 2018
|
|
$
|
1,430
|
|
|
$
|
4,389
|
|
|
$
|
5,819
|
|
Restructuring costs
|
|
4,602
|
|
|
55
|
|
|
4,657
|
|
|||
Adjustments to prior estimates
|
|
—
|
|
|
771
|
|
|
771
|
|
|||
Cash payments
|
|
(5,631
|
)
|
|
(1,669
|
)
|
|
(7,300
|
)
|
|||
Balance as of December 31, 2018
|
|
$
|
401
|
|
|
$
|
3,546
|
|
|
$
|
3,947
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
—
|
|
|
5,481
|
|
|
7,385
|
|
|
6,247
|
|
|
As of
|
||||||
|
December 31, 2019
|
|
March 31, 2019
|
||||
Senior Secured Term Loan
|
$
|
163,350
|
|
|
$
|
164,588
|
|
Amended PNC Credit Facility
|
5,289
|
|
|
—
|
|
||
Less: current portion
|
(1,650
|
)
|
|
(1,650
|
)
|
||
Less: unamortized debt issuance costs (1)
|
(14,575
|
)
|
|
(17,317
|
)
|
||
Long-term debt, net
|
$
|
152,414
|
|
|
$
|
145,621
|
|
•
|
although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
|
•
|
Adjusted EBITDA does not reflect: (1) interest and tax payments that may represent a reduction in cash available to us; (2) capital expenditures, future requirements for capital expenditures or contractual commitments; (3) changes in, or cash requirements for, working capital needs; (4) the potentially dilutive impact of stock-based compensation; (5) potential ongoing costs related to the financial restatement and related activities; (6) loss on debt extinguishment or (7) potential future restructuring expenses; and
|
•
|
Adjusted Net Income (Loss) does not reflect: (1) potential future restructuring activities; (2) the potentially dilutive impact of stock-based compensation; (3) potential ongoing costs related to the financial restatement and related activities; (4) loss on debt extinguishment; or (5) potential future restructuring expenses; and
|
•
|
other companies, including companies in our industry, may calculate Adjusted EBITDA, Adjusted Net Income (Loss) or similarly titled measures differently, which reduces its usefulness as a comparative measure.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||
Total revenue
|
$
|
103,315
|
|
|
$
|
101,979
|
|
|
$
|
314,734
|
|
|
$
|
299,403
|
|
Total cost of revenue (1)
|
56,239
|
|
|
58,897
|
|
|
178,309
|
|
|
174,455
|
|
||||
Gross profit
|
47,076
|
|
|
43,082
|
|
|
136,425
|
|
|
124,948
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Research and development (1)
|
9,325
|
|
|
7,907
|
|
|
27,058
|
|
|
24,030
|
|
||||
Sales and marketing (1)
|
15,421
|
|
|
16,991
|
|
|
46,101
|
|
|
52,797
|
|
||||
General and administrative (1)
|
10,719
|
|
|
13,481
|
|
|
43,623
|
|
|
46,943
|
|
||||
Restructuring charges
|
(64
|
)
|
|
1,227
|
|
|
1,020
|
|
|
5,428
|
|
||||
Total operating expenses
|
35,401
|
|
|
39,606
|
|
|
117,802
|
|
|
129,198
|
|
||||
Income (loss) from operations
|
11,675
|
|
|
3,476
|
|
|
18,623
|
|
|
(4,250
|
)
|
||||
Other income (expense)
|
(611
|
)
|
|
3,846
|
|
|
(446
|
)
|
|
3,870
|
|
||||
Interest expense
|
(6,425
|
)
|
|
(6,238
|
)
|
|
(19,079
|
)
|
|
(14,809
|
)
|
||||
Loss on debt extinguishment, net
|
—
|
|
|
(5,033
|
)
|
|
—
|
|
|
(17,458
|
)
|
||||
Income (loss) before income taxes
|
4,639
|
|
|
(3,949
|
)
|
|
(902
|
)
|
|
(32,647
|
)
|
||||
Income tax provision (benefit)
|
(110
|
)
|
|
337
|
|
|
471
|
|
|
739
|
|
||||
Net income (loss)
|
$
|
4,749
|
|
|
$
|
(4,286
|
)
|
|
$
|
(1,373
|
)
|
|
$
|
(33,386
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||
Cost of revenue
|
$
|
162
|
|
|
$
|
99
|
|
|
$
|
335
|
|
|
$
|
285
|
|
Research and development
|
480
|
|
|
118
|
|
|
745
|
|
|
335
|
|
||||
Sales and marketing
|
300
|
|
|
195
|
|
|
708
|
|
|
262
|
|
||||
General and administrative
|
1,114
|
|
|
688
|
|
|
3,620
|
|
|
1,936
|
|
||||
Total
|
$
|
2,056
|
|
|
$
|
1,100
|
|
|
$
|
5,408
|
|
|
$
|
2,818
|
|
|
Three Months Ended
|
|
|
|
|
|||||||||||||||
(dollars in thousands)
|
December 31, 2019
|
|
% of
revenue |
|
December 31, 2018
|
|
% of
revenue |
|
$ Change
|
|
% Change
|
|||||||||
Product revenue
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Primary storage systems
|
$
|
25,687
|
|
|
25
|
%
|
|
$
|
15,888
|
|
|
16
|
%
|
|
$
|
9,799
|
|
|
62
|
%
|
Secondary storage systems
|
25,306
|
|
|
24
|
%
|
|
35,869
|
|
|
35
|
%
|
|
(10,563
|
)
|
|
(29
|
)%
|
|||
Devices and media
|
15,442
|
|
|
15
|
%
|
|
11,229
|
|
|
11
|
%
|
|
4,213
|
|
|
38
|
%
|
|||
Total product revenue
|
$
|
66,435
|
|
|
64
|
%
|
|
$
|
62,986
|
|
|
62
|
%
|
|
$
|
3,449
|
|
|
5
|
%
|
Service revenue
|
32,892
|
|
|
32
|
%
|
|
34,097
|
|
|
33
|
%
|
|
(1,205
|
)
|
|
(4
|
)%
|
|||
Royalty revenue
|
3,988
|
|
|
4
|
%
|
|
4,896
|
|
|
5
|
%
|
|
(908
|
)
|
|
(19
|
)%
|
|||
Total revenue
|
$
|
103,315
|
|
|
100
|
%
|
|
$
|
101,979
|
|
|
100
|
%
|
|
$
|
1,336
|
|
|
1
|
%
|
|
Three Months Ended
|
|
|
|
|
|||||||||||||||
(dollars in thousands)
|
December 31, 2019
|
|
Gross
margin % |
|
December 31, 2018
|
|
Gross
margin % |
|
$ Change
|
|
Basis point change
|
|||||||||
Product gross profit
|
$
|
22,763
|
|
|
34.3
|
%
|
|
$
|
17,167
|
|
|
27.3
|
%
|
|
$
|
5,596
|
|
|
700
|
|
Service gross profit
|
20,325
|
|
|
61.8
|
%
|
|
21,019
|
|
|
61.6
|
%
|
|
(694
|
)
|
|
20
|
|
|||
Royalty gross profit
|
3,988
|
|
|
100.0
|
%
|
|
4,896
|
|
|
100.0
|
%
|
|
(908
|
)
|
|
—
|
|
|||
Gross profit
|
$
|
47,076
|
|
|
45.6
|
%
|
|
$
|
43,082
|
|
|
42.2
|
%
|
|
$
|
3,994
|
|
|
340
|
|
|
Three Months Ended
|
|
|
|
|
|||||||||||||||
(dollars in thousands)
|
December 31, 2019
|
|
% of
revenue |
|
December 31, 2018
|
|
% of
revenue |
|
$ Change
|
|
% Change
|
|||||||||
Research and development
|
$
|
9,325
|
|
|
9
|
%
|
|
$
|
7,907
|
|
|
8
|
%
|
|
$
|
1,418
|
|
|
18
|
%
|
Sales and marketing
|
15,421
|
|
|
15
|
%
|
|
16,991
|
|
|
17
|
%
|
|
(1,570
|
)
|
|
(9
|
)%
|
|||
General and administrative
|
10,719
|
|
|
10
|
%
|
|
13,481
|
|
|
13
|
%
|
|
(2,762
|
)
|
|
(20
|
)%
|
|||
Restructuring charges
|
(64
|
)
|
|
—
|
%
|
|
1,227
|
|
|
1
|
%
|
|
(1,291
|
)
|
|
(105
|
)%
|
|||
Total operating expenses
|
$
|
35,401
|
|
|
34
|
%
|
|
$
|
39,606
|
|
|
39
|
%
|
|
$
|
(4,205
|
)
|
|
(11
|
)%
|
|
Three Months Ended
|
|
|
|
|
|||||||||||||||
(dollars in thousands)
|
December 31, 2019
|
|
% of
revenue |
|
December 31, 2018
|
|
% of
revenue |
|
$ Change
|
|
% Change
|
|||||||||
Other income (expense)
|
$
|
(611
|
)
|
|
(1
|
)%
|
|
$
|
3,846
|
|
|
4
|
%
|
|
$
|
4,457
|
|
|
(116
|
)%
|
Interest expense
|
(6,425
|
)
|
|
(6
|
)%
|
|
(6,238
|
)
|
|
(6
|
)%
|
|
187
|
|
|
(3
|
)%
|
|||
Loss on debt extinguishment
|
—
|
|
|
—
|
%
|
|
(5,033
|
)
|
|
—
|
%
|
|
(5,033
|
)
|
|
(100
|
)%
|
|
Three Months Ended
|
|
|
|
|
|||||||||||||||
(dollars in thousands)
|
December 31, 2019
|
|
% of
revenue |
|
December 31, 2018
|
|
% of
revenue |
|
$ Change
|
|
% Change
|
|||||||||
Income tax provision
|
$
|
(110
|
)
|
|
—
|
%
|
|
$
|
337
|
|
|
—
|
%
|
|
$
|
(447
|
)
|
|
(133
|
)%
|
|
Nine Months Ended
|
|
|
|
|
|||||||||||||||
(dollars in thousands)
|
December 31, 2019
|
|
% of
revenue |
|
December 31, 2018
|
|
% of
revenue |
|
$ Change
|
|
% Change
|
|||||||||
Product revenue
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Primary storage systems
|
$
|
65,150
|
|
|
21
|
%
|
|
$
|
50,358
|
|
|
17
|
%
|
|
$
|
14,792
|
|
|
29
|
%
|
Secondary storage systems
|
88,281
|
|
|
28
|
%
|
|
87,468
|
|
|
28
|
%
|
|
813
|
|
|
1
|
%
|
|||
Devices and media
|
46,930
|
|
|
15
|
%
|
|
43,651
|
|
|
15
|
%
|
|
3,279
|
|
|
8
|
%
|
|||
Total product revenue
|
$
|
200,361
|
|
|
64
|
%
|
|
$
|
181,477
|
|
|
60
|
%
|
|
$
|
18,884
|
|
|
10
|
%
|
Service revenue
|
98,673
|
|
|
31
|
%
|
|
101,013
|
|
|
34
|
%
|
|
(2,340
|
)
|
|
(2
|
)%
|
|||
Royalty revenue
|
15,700
|
|
|
5
|
%
|
|
16,913
|
|
|
6
|
%
|
|
(1,213
|
)
|
|
(7
|
)%
|
|||
Total revenue
|
$
|
314,734
|
|
|
100
|
%
|
|
$
|
299,403
|
|
|
100
|
%
|
|
$
|
15,331
|
|
|
5
|
%
|
|
Nine Months Ended
|
|
|
|
|
|||||||||||||||
(dollars in thousands)
|
December 31, 2019
|
|
Gross
margin %
|
|
December 31, 2018
|
|
Gross
margin %
|
|
$ Change
|
|
Basis point change
|
|||||||||
Product gross profit
|
$
|
60,024
|
|
|
30.0
|
%
|
|
$
|
48,901
|
|
|
26.9
|
%
|
|
$
|
11,123
|
|
|
310
|
|
Service gross profit
|
60,701
|
|
|
61.5
|
%
|
|
59,134
|
|
|
58.5
|
%
|
|
1,567
|
|
|
300
|
|
|||
Royalty gross profit
|
15,700
|
|
|
100.0
|
%
|
|
16,913
|
|
|
100.0
|
%
|
|
(1,213
|
)
|
|
—
|
|
|||
Gross profit
|
$
|
136,425
|
|
|
43.3
|
%
|
|
$
|
124,948
|
|
|
41.7
|
%
|
|
$
|
11,477
|
|
|
160
|
|
|
Nine Months Ended
|
|
|
|
|
|||||||||||||||
(dollars in thousands)
|
December 31, 2019
|
|
% of
revenue |
|
December 31, 2018
|
|
% of
revenue |
|
$ Change
|
|
% Change
|
|||||||||
Research and development
|
$
|
27,058
|
|
|
9
|
%
|
|
$
|
24,030
|
|
|
8
|
%
|
|
$
|
3,028
|
|
|
13
|
%
|
Sales and marketing
|
46,101
|
|
|
15
|
%
|
|
52,797
|
|
|
18
|
%
|
|
(6,696
|
)
|
|
(13
|
)%
|
|||
General and administrative
|
43,623
|
|
|
14
|
%
|
|
46,943
|
|
|
16
|
%
|
|
(3,320
|
)
|
|
(7
|
)%
|
|||
Restructuring charges
|
1,020
|
|
|
—
|
%
|
|
5,428
|
|
|
2
|
%
|
|
(4,408
|
)
|
|
(81
|
)%
|
|||
Total operating expenses
|
$
|
117,802
|
|
|
37
|
%
|
|
$
|
129,198
|
|
|
43
|
%
|
|
$
|
(11,396
|
)
|
|
(9
|
)%
|
|
Nine Months Ended
|
|
|
|
|
|||||||||||||||
(dollars in thousands)
|
December 31, 2019
|
|
% of
revenue |
|
December 31, 2018
|
|
% of
revenue
|
|
$ Change
|
|
% Change
|
|||||||||
Other income (expense)
|
$
|
(446
|
)
|
|
0
|
%
|
|
$
|
3,870
|
|
|
1
|
%
|
|
$
|
4,316
|
|
|
(112
|
)%
|
Interest expense
|
(19,079
|
)
|
|
(6
|
)%
|
|
(14,809
|
)
|
|
(5
|
)%
|
|
4,270
|
|
|
(29
|
)%
|
|||
Loss on debt extinguishment, net
|
—
|
|
|
—
|
%
|
|
(17,458
|
)
|
|
(6
|
)%
|
|
(17,458
|
)
|
|
(100
|
)%
|
|
Nine Months Ended
|
|
|
|
|
||||||||||||||
(dollars in thousands)
|
December 31, 2019
|
|
% of
revenue |
|
December 31, 2018
|
|
% of
revenue
|
|
$ Change
|
|
% Change
|
||||||||
Income tax provision
|
$
|
471
|
|
|
—
|
%
|
|
$
|
739
|
|
|
—
|
%
|
|
(268
|
)
|
|
(36
|
)%
|
|
Nine Months Ended December 31,
|
||||||
(Dollars in thousands)
|
2019
|
|
2018
|
||||
Cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
(4,966
|
)
|
|
$
|
(7,353
|
)
|
Investing activities
|
(2,327
|
)
|
|
(1,755
|
)
|
||
Financing activities
|
3,880
|
|
|
9,008
|
|
||
Effect of exchange rate changes
|
(3
|
)
|
|
(83
|
)
|
||
Net decrease in cash and cash equivalents and restricted cash
|
$
|
(3,416
|
)
|
|
$
|
(183
|
)
|
(a)
|
Evaluation of disclosure controls and procedures. We had concluded that our internal control over financial reporting and disclosure controls and procedures were not effective as of March 31, 2019, as described in Item 9A, “Controls and Procedures” of our most recently filed Annual Report on Form 10-K for the year ended March 31, 2019, for which remediation efforts are ongoing. We evaluated the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13-1-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by the Quarterly Report on Form 10-Q. This control evaluation was performed under the supervision and with the participation of management, including our CEO and our CFO. Disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this Quarterly Report on Form 10-Q, is recorded, processed, summarized and reported within the time periods specified by the SEC. Disclosure controls are also designed to ensure that such information is accumulated and communicated to our management, including the CEO and CFO, as appropriate, to allow timely decisions regarding the required disclosure. Based on this evaluation, management, including our Chief Executive Officer and our Chief Financial Officer, concluded as of December 31, 2019 that our disclosure controls and procedures were not effective because of material weaknesses in our internal control over financial reporting.
|
(b)
|
Changes in internal control over financial reporting. Other than the changes described above in Item 9A, “Controls and Procedures” of our most recently filed Annual Report on Form 10-K for the year ended March 31, 2019, there were no other changes in our internal control over financial reporting that occurred during the nine months ended December 31, 2019 covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Filing Date
|
|
Exhibit
|
|
Filed or Furnished Herewith
|
10.1
|
|
|
8-K
|
|
1-13449
|
|
12/16/2019
|
|
10.1
|
|
|
|
10.2
|
|
|
8-K
|
|
1-13449
|
|
11/13/2019
|
|
10.2
|
|
|
|
10.3
|
|
|
8-K
|
|
1-13449
|
|
11/13/2019
|
|
10.1
|
|
|
|
10.4
|
|
|
10-Q
|
|
1-13449
|
|
11/6/2019
|
|
10.1
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
|
|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
|
QUANTUM CORPORATION
|
|
|
|
|
|
/s/ J. MICHAEL DODSON
|
|
J. Michael Dodson
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
Date: January 29, 2019
|
|
Sincerely,
|
|
/s/ Jamie L. Lerner
|
Jamie L. Lerner
|
President & CEO
|
jamie.lerner@quantum.com
|
415.218.3714
|
|
|
|
|
|
|
|
Signed:
|
|
/s/ Rebecca J. Jacoby
|
|
|
|
Date: December 16, 2019
|
|
|
Rebecca J. Jacoby
|
|
|
|
|
•
|
to attract and retain the best available Employees, Directors and Consultants for positions of substantial responsibility,
|
•
|
to provide incentive to Employees, Directors and Consultants, and
|
•
|
to promote the success of the Company’s business.
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Quantum Corporation;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
|
/s/ JAMES J. LERNER
|
|
James J. Lerner
|
|
Chairman of the Board of Directors,
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
Date: January 29, 2019
|
1)
|
I have reviewed this quarterly report on Form 10-Q of Quantum Corporation;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ J. MICHAEL DODSON
|
|
J. Michael Dodson
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
Date: January 29, 2019
|
|
|
|
QUANTUM CORPORATION
|
|
|
|
/s/ JAMES J. LERNER
|
|
James J. Lerner
|
|
Chairman of the Board of Directors,
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
Date: January 29, 2019
|
|
|
|
QUANTUM CORPORATION
|
|
|
|
/s/ J. MICHAEL DODSON
|
|
J. Michael Dodson
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
Date: January 29, 2019
|