Feeds

Overland Storage takes market hit on ITC's initial patents ruling

OK we're falling ... have we got a bungee on or not?

Beginner's guide to SSL certificates

Updated Overland Storage has lost the initial determination of a trade violation case it was hoping to win and its shares have dived off a cliff. Is this a bungee jump with a bounce back, or a one way street?

Overland makes tape and disk-based data protection gear and Snap-brand filer and block access arrays for the SMB market. It's been struggling for years, hovering on the brink of Nasdaq market ejection more than once due to its low share price - which is due to its loss-making results. It's known as a persistent survivor that might, just might get out of the hole it's in.

Overland has been waiting for a US International Trade Commission (ITC) judgment on its IP infringement law case against European autoloader manufacturer BDT. Similar cases against Dell and IBM were settled out of court.

The ITC's initial determination has just come in and it is that Overland's patents are valid, but that BDT had not violated them – as Overland had alleged. Specifically – according to the initial determination – BDT has not committed a violation of section 337 of the Tariff Act of 1930.

That's a huge blow to Overland. If the ITC goes forward with a resolution along the same lines, it means no financial compensation and no royalty payments from BDT.

The ITC's final determination in the investigation is expected by October 22, 2012. Overland states "Resolution of the ITC action will not resolve Overland's patent infringement district court action against BDT."

Overland Storage has issued a statement saying:

Under ITC procedure, the Initial Determination is not a final resolution of an ITC action. After an Initial Determination is issued, the full Commission decides whether to review and modify the ALJ's [Administrative Law Judge Charles Bullock of the US International Trade Commission] Initial Determination. If the Commission decides to review the Initial Determination on the merits, the Commission will issue its decision in a Final Determination. The Commission's Final Determination is expected by October 22, 2012. Upon completion of the ITC case, Overland Storage plans to pursue monetary damages against BDT in district court.

Yes, okay, but the stock market is indicating it's seen Overland's future as a result of this ITC action failure and does not like it one bit. The shares have taken a huge hit, losing 38 per cent of their value in a day. It has taken Overland's market worth from $49m to $35.6m. Amazingly this is just half of its fiscal 2011 revenues.

Nine months into its fiscal 2012 year Overland revenues are just over $43 million and it may see the year out with $58m if its fourth quarter is the same as the previous two. This is bleak indeed. ®

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.