Feeds

Overland tugs parachute cord as storage biz hurtles earthwards

Bosses tout $5.8m of stock in recovery bid

Beginner's guide to SSL certificates

Overland Storage hopes to raise $5.8m from a stock offering and may use the cash for working capital - raising questions over its ability to fund its operations from sales until the biz recovers.

It's that phrase "may use the cash for working capital" that gets you feeling nervous. Let's have a look at the revenue and profit/loss history over the last few quarters for the background. (Look away now if you are of a financially nervous disposition.)

Overland Storage results history Q2 fy 2012

Overland Storage: revenue and profit/loss quarterly history

Pretty bleak, isn't it? CEO Eric Kelly and his exec team are doing their level best; costs have been squeezed and squeezed, the number of channel partners is growing, and the product lines have been refreshed, but the revenues haven't responded. Every quarter that had an upturn in sales was followed by one with a revenue dive.

The firm has a lawsuit against tape autoloader manufacturer BDT which may come good in a financial damages sense. There are Seeking Alpha articles full of glowing prospects, but they are written by an investor in Overland so he would be optimistic, wouldn't he?

Raising money through a stock offering for working capital looks like trying to avoid a revenue shortfall cliff, doesn't it?

We've asked Overland to comment, but nothing immediately came back.

If Kelly and his team do pull a company turnaround out of this financial misery it will be one of the most miraculous escapes from collapse in the whole storage business. The stock offering is expected to close on 28 March 28, subject to customary closing conditions. Needham & Company, LLC is the sole underwriter for the offering. ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Bitcasa bins $10-a-month Infinite storage offer
Firm cites 'low demand' plus 'abusers'
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.