Feeds

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

Storage array maker still thinks it's invincible

Gartner critical capabilities for enterprise endpoint backup

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
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
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
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
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
A beheading in EMC's ViPR lair? Software's big cheese to advise CEO
Changes amid rivalry in the storage snake pit
prev story

Whitepapers

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 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.