Why Are Quantum Shares Trading Higher Today?

Quantum Corp QMCO reported second-quarter FY22 revenue growth of 9% year-on-year to $93.2 million, beating the consensus of $87.5 million.
Revenue from Product grew 7.5% Y/Y to $54.7 million, Service rose 9.1% Y/Y to $34.4 million, and Royalty increased 19.8% Y/Y to $4.2 million.
The gross margin contracted 100 bps to 41%.
Adjusted EPS of $0.00 beat the consensus loss of $(0.04).
"The ongoing industry supply constraints improved during the quarter, but still restricted our ability to meet all end customer demand. We anticipate supply chain constraints will see further improvement in our third fiscal quarter, which should allow the company to see a sequential reduction in current backlog levels," said Jamie Lerner, Chairman, and CEO, Quantum.
The company ended Q2 with $50.0 million in backlog, compared to $30.0 million in the prior quarter.
Outlook: Quantum sees Q3 revenue of $99 million - $109 million versus the consensus of $104.4 million. It sees adjusted EPS of $(0.02) - $0.02 below the consensus of $0.06.
Quantum continues to expect FY22 revenue of $380 million - $420 million against the consensus of $388.8 million.
Price Action: QMCO shares traded higher by 11.9% at $6.94 on the last check Thursday.

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