Feeds

Disk biz Overland bleeds more cash - bah, only a flesh wound!

Storage array maker still thinks it's invincible

Secure remote control for conventional and virtual desktops

Another quarter for Overland Storage, and another big loss as revenue slides year-on-year.

The struggling tape and disk array vendor hopes its scale-out clustered NAS, branded the SnapScale, can turn its fortunes around - along with damages it'll possibly get from BDT and other tape biz if it wins a patent-infringement court case.

So, to the numbers. If you are of a faint or vulnerable disposition then look away now.

Revenues for the second quarter of fiscal 2013, which ended 31 December, were $12.6m, 17 per cent less than the year-ago period, but 8 per cent up on the first quarter. Don't get your hopes up: look at the chart and you will see Overland typically has a second quarter bounce at this time of year followed by a fall. It's a seasonal thing.

Overland Storage quarterly results to Q2 fy2013

How to turn eight-figure sales dollars into a seven-figure loss

There was a net loss of $4.3m, the same as a year ago, and $600,000 less than the first quarter. There is some good news: product revenues grew and the company transitioned towards being more of a branded product supplier than a pure OEM, and it moved into a growth phase. But we'll have to wait and see if this is a typically seasonal quarter, as before, or one that will be a platform for further growth.

Overland also scored $14.5m in extra funding through private placements of its securities. The cash will be used to keep Overland afloat. "The company intends to use the net proceeds from these offerings for general corporate purposes, which may include, among others, working capital needs and capital expenditures," we're told.

If we look at Overland's cash and equivalents total over the past few quarters we can see it is in danger of simply running out of dosh:

  • Financial year 2012
    • 1st quarter: $9.5 million
    • 2nd quarter: $7.7 million
    • 3rd quarter: $13.4 million
    • 4th quarter: $10.5 million
  • Financial year 2013
    • 1st quarter: $7.2 million
    • 2nd quarter: $3.2 million - oops!

That $14.5m will come in very handy. Without it, the third quarter could have seen the company become a cash-free zone.

The storage biz is running educational roadshows for its channel partners in the US this month with a focus on scale-out storage - how to actually sell its SnapScale X2 clustered sale-out NAS products in other words. The product has been strengthened with a RapidRebuild feature that recovers data quicker by only rebuilding the blocks used on a drive. It shortens the rebuild time for higher capacity drives, such as 4TB nearline SATA disk.

Undoubtedly Overland has product strengths. Are they good enough for its channel to capitalise on them? That is the big question. As Monty Python's Black Knight character might say of Overland's sales dip: "Only a flesh wound!" ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ellison: Sparc M7 is Oracle's most important silicon EVER
'Acceleration engines' key to performance, security, Larry says
Linux? Bah! Red Hat has its eye on the CLOUD – and it wants to own it
CEO says it will be 'undisputed leader' in enterprise cloud tech
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
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

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.