Feeds

Storage-slinger: Sales down for 6th year running? Blame TAPE

Disk and software booming ... but not quite fast enough

Next gen security for virtualised datacentres

Storage biz Quantum's position couldn't be further from that of rival CommVault. Revenues down? Yes. Both annually and sequentially? Yep. Losses deeper? Mmhmm. Annually and sequentially? Yes indeed.

It's the same old, same old for Jon Gacek's crew at Quantum, where unreeling tape revenues overtook slowly growing disk revenues. The company reported a dreadful fourth quarter and its sixth straight year of declining revenues. When is enough enough for people banging their head against a brick wall?

Six years of Quantum annual revenue declines

After six years of decline maybe a change in strategy? No? Oh, alright then.

For its fourth fiscal 2013 quarter, ended 31 March, Quantum's revenues were $140m, 13 per cent down annually and $20m less than in the previous quarter. The net loss was $14.5m. Losses were $11m a year ago and $8m a quarter ago. This is Quantum's fifth consecutive loss-making quarter.

The full fiscal 2013 revenue number was $588m, 10 per cent down on fiscal's 2012's $652.4m, and the net loss was $52m, a heart-stopping $43m more than losses in 2012.

Management said: "Although this was a challenging year for storage generally, and a particularly tough one for tape, we grew our disk systems and software revenue to a new high, maintained our market share leadership in tape, introduced a broad range of innovative new products and further improved our balance sheet."

In effect, it woz tape wot done it and disk wot didn't.

The spokesman added: "Our product portfolio is a key strength, and we will continue to be aggressive about utilising our technology assets to create products and solutions that are clearly differentiated and deliver superior value to customers in both data protection and big data management. This will include new deduplication, virtualisation, cloud, workflow and archive offerings."

In the fiscal 2013 year, Quantum reported record revenues of $152m from disk systems and software sales (including related services), an 11 per cent increase over fiscal 2012. Quantum attributes this to record revenue from both StorNext (file virtualisation) and midrange DXi (deduplicating backup array) sales.

The thing is, this still isn't enough.

Quantum expects to have $135m to $140m worth of sales next quarter - probably another decline, and probably leading to yet another quarter of losses. El Reg reckons Quantum is going to shrink some more before its relatively low-growth disk products will take up the tape slack. Still, if the board and investors are happy who are we to moan? ®

Gartner critical capabilities for enterprise endpoint backup

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
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Cutting cancer rates: Data, models and a happy ending?
How surgery might be making cancer prognoses worse
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
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.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
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?