Feeds

Lawsuit loot helps Overland cut loss

$3m keeps wolf from door

Next gen security for virtualised datacentres

Overland Storage has reported a reduced quarterly loss, helped by a $3m gain from a lawsuit.

Overland, which supplies NEO physical and REO virtual tape libraries and Snap iSCSI SAN, filer and unified storage products, has reported its second quarter fiscal 2011 results, ending 31 December 2010; both revenue and net loss numbers are down.

Revenues were $17.93m, 12.2 per cent down on the $20.432m reported a year ago, and the net loss was $0.91m ($2.58m a year ago.) That looks impressive. The revenue was two per cent higher than in the previous quarter and the net loss was significantly lower than the $6.5m in the preceding quarter.

However, Overland earned $3m by selling a minority interest in its patent infringement no-win, no-fee lawsuit against tape automation manufacturer BDT. Removing this from the numbers would make the net loss $3.91m, still down on the prior quarter but an increase on the year-ago quarter. It was a good rabbit to pull out of the hat but doesn't relate to underlying product and service sales, being a one-off… but maybe not.

If the lawsuit prospects are good enough for some third party to pay Overland $3m for a minority interest in the outcome, then Overland could reasonably look forward to an award of perhaps $10m or more if it wins the case, giving it a further gain of, say, $5m. Perhaps, with this sale happening, BDT will try to negotiate a settlement.

As its OEM revenues decline Overland is selling more branded product; sales grew 21.7 per cent from the previous quarter and now constitute 92.3 per cent of all sales. The downwards effect of declining OEM revenue on Overland's result will probably end next quarter.

Interestingly sales of NEO tape products in the quarter were 10.7 per cent higher than in the first quarter. There is a view in Overland that the tape market is growing, a counter-intuitive view to many. The company also thinks the tape market is ripe for innovation.

SnapServer and SnapSAN product sales were up 53 per cent quarter-on-quarter and 95 per cent year-on-year.

Meanwhile, an interesting note: Shmuel Shottan has joined Overland's board. This would be a so-what announcement were it not for the fact that he is the chief technology officer (CTO) of hardware-accelerated filer supplier BlueArc, a company that was founded by Overland's CTO and engineering VP Geoff Barrall. Shottan also worked at Snap Appliance, Overland CEO Eric Kelly's old company and one which he was instrumental in having Overland buy in 2008.

Could we be looking at some sort of link between low-end Snap products and the high-end BlueArcs, some sort of technology supply maybe? Or is it just a case of getting more relevant expertise on the board?

Getting back to the results; if Overland continues to make progress it could return to profit. That would be a red-letter day. ®

5 things you didn’t know about cloud backup

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.