Feeds

Quantum lurches Starboard: Vigorous investor comes aboard

Tape-slinger invites 3 new directors to boardroom table

Secure remote control for conventional and virtual desktops

Blocks and Files Struggling storage biz Quantum has been in a quandary about how to react to aggressive shareholder Starboard Value.

Now the tape and disk data protection vendor has decided to play nice and invite three Starboard nominees onto its board.

It works like this: the board goes up from eight seats to nine. Jeffrey Smith, Starboard's CEO, gets one of them at once. Quantum nominates two Starboard-recommended people - Exar CEO Louis DiNardo and Imation-acquired Nexsan CEO Philip Black - for election to its board at the 2013 AGM, replacing two incumbents. So Starboard, owning around 17 per cent of Quantum's stock, gets a third of the board seats.

Quantum's CEO Jon Gacek said: "We look forward to drawing on the experience and perspectives that Jeff, Lou and Phil each bring to the board as we focus on driving growth and profit by building on our leadership in data protection and Big Data management.”

Quantum is also nominating Gregg Powers, the CEO of Private Capital Management (PCM), to its board at the AGM. PCM owns about 8 per cent of Quantum's common stock and is said to be a long-term shareholder.

Powers provided a canned quote about this: "I have long known the company and believe that the pieces are in place to substantially enhance shareholder value. I look forward to working with management and the rest of the board to help the company fully capitalise on its many market opportunities and create value for all of Quantum’s stakeholders.”

That's four new board members, with Powers possibly there to counter-balance Starboard. How can the re-jigged board, assuming the three nominees are elected at the AGM, enhance shareholder value by "building on [Quantum's] leadership in data protection and Big Data management"?

El Reg's storage desk believes that Quantum could become profitable if it were to lay off a lot of people and severely shrink its tape library product range, but such actions may effectively end Quantum's tape business as other suppliers attack its base.

The result could be a much smaller company overall making smaller revenues, which wouldn't surely appeal to Starboard Value.

Can the refreshed board turn Quantum into a lean, mean profits-generating machine by improving business execution and product packaging, or will it decide that bits of Quantum, or Quantum in its entirety, can be better run elsewhere and sell them off?

We'll probably have to wait until after Quantum's AGM, which will most likely be held in August like the 2012 AGM, to find out which way the new board's thinking is going. ®

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.