Quantum Stock Drops After Q1 Report: Here's Why

Quantum Corp.‘s QMCO latest financial results have left investors disappointed, as the company’s first-quarter performance fell short of expectations, leading to an over 17% drop in its stock price. Despite reporting significant quarterly losses and a decline in revenue compared to last year, CEO Hugues Meyrath remains optimistic about leveraging high-value assets to enhance sales distribution and reduce debt.

Here's a look at the key figures from the quarter. 

The Details: Quantum reported quarterly losses of $1.58 per share, which missed the consensus estimate for losses of 15 cents.  

Quarterly revenue came in at $64.28 million, which missed the Street estimate of $73.7 million and was down from revenue of $72.26 million in the prior year’s quarter.

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“I believe Quantum has a solid foundation of high-value assets with a tangible opportunity to improve sales distribution and execution to take the Company to the next level,” Meyrath said.

“Additionally, we continue to prioritize debt reduction and working capital requirements, and to-date, the Company has raised approximately $83 million in net proceeds from the previously announced standby equity purchase agreement,” he added.

Outlook: Quantum expects second-quarter revenue of $61 million, plus or minus $2 million, and adjusted losses of 26 cents per share, plus or minus 10 cents.

QMCO Stock Price: According to data from Benzinga Pro, Quantum stock was down 17.4% at $7.10 in Wednesday's extended trading. 

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