Feeds

Quantum parks 180 staff

Not running out of cash

Build a business case: developing custom apps

Data protection vendor Quantum is laying off 180 people and cutting expenses to preserve its business in the face of what it calls a global financial crisis.

Quantum supplies tape libraries and disk-based protection arrays, including its DXi de-duplicating arrays. The DXi technology has been licensed to EMC and Quantum is working with Dell to help it supply a deduplicating array. Revenues from disk-based protection products has not risen fast enough to offset declines in the tape business, which is handicapped by a debt overhang from the ADIC acquisition and falling revenues from older tape formats such as Quantum's own DLT. It is finding current market conditions tough going.

The company is laying off 8 per cent of its workforce and cutting additional expenses in an effort to save about $18m. There will be a one-time termination cost of $4.4m. It will increase investment in its DXi products and associated de-duplication and replication technology, and is partnering EMC and Dell to develop a common de-duplication architecture.

In its fiscal second quarter ended September 30 Quantum reported a GAAP net loss of $3.26m ($0.01/share), which was an improvement on the year ago quarter's $20.47m loss ($0.10/share). It also reported an encouraging 400 new customers for its DXI products introduced earlier this year.

Quantum's chairman and CEO Rick Belluzzo says there is strong demand for the DXi technology products and, hopefully, this will show up more in the next set of quarterly results. He was keen to say that Quantum is not running out of cash: "Despite these challenges, we remain in compliance with all our debt covenants and expect to be in compliance for the next twelve months." ®

Build a business case: developing custom apps

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.