Feeds

Overland tugs parachute cord as storage biz hurtles earthwards

Bosses tout $5.8m of stock in recovery bid

Internet Security Threat Report 2014

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'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
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
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.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.