Quantum Q4: 11% Revenue Growth, Cost Reduction Action, Seasonally Lower Q1 & More

Quantum Corporation QMCO reported fourth-quarter FY23 revenue growth of 11% year-on-year to $105.34 million, beating the consensus of $102.04 million.
Adjusted EPS of $(0.04) loss came in line with the estimate.
"Although we anticipate the first fiscal quarter to be seasonally lower, we expect a resumption of revenue rotation to higher margin products and EBITDA expansion throughout the remainder of the year," said Jamie Lerner, Chairman and CEO of Quantum.
The adjusted gross margin contracted 290 bps to 35.5%.
Revenue from Product grew 16.2% Y/Y, Service rose 0.32% Y/Y, and Royalty increased 16% Y/Y.
Subsequent to the end of 4Q, Quantum implemented a global efficiency plan that includes a cost reduction action that will yield approximately $14 million in annualized savings by the end of the fiscal year 2025, with a payback of under six months.
The company exited the quarter with cash and equivalents worth $26.2 million.
Outlook: Quantum sees Q1 revenues of $97 million, plus or minus $3 million, versus an estimate of $102.17 million.
The company expects non-GAAP adjusted net loss per share of $(0.00), plus or minus $0.02, versus an estimate of breakeven.
Quantum expects FY24 revenue of $415 million, plus or minus $10.0 million. The street view is at $423.84 million.
The company sees non-GAAP adjusted EPS of $0.01, plus or minus $0.10. The Street view stands at $0.02.
Price Action: QMCO shares traded lower by 12% at $1.0797 on the last check Tuesday.

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