Feeds

Quantum parks 180 staff

Not running out of cash

Top 5 reasons to deploy VMware with Tegile

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." ®

Beginner's guide to SSL certificates

More from The Register

next story
Ellison: Sparc M7 is Oracle's most important silicon EVER
'Acceleration engines' key to performance, security, Larry says
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Lenovo to finish $2.1bn IBM x86 server gobble in October
A lighter snack than expected – but what's a few $100m between friends, eh?
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Hey, what's a STORAGE company doing working on Internet-of-Cars?
Boo - it's not a terabyte car, it's just predictive maintenance and that
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.