Feeds

Don't count out Overland Storage: Borged mixed tape biz = PROFIT at last

Tandberg slurp beings combined tape revs to just 22%

Gartner critical capabilities for enterprise endpoint backup

Analysis We expected declining revenues and another loss and Overland didn’t disappoint. First fiscal 2014 quarter revenues of $10.6m were down 9 per cent on the annual compare and 12 per cent compared to the previous quarter. On the other hand, its new acquisition means it pulls a lot of resources out of the tape biz and into the more profitable parts of the storage world.

As for those Q1 results, there was a loss of $4.6m which was better than last year's $7.2m loss, and the previous quarter’s $8.8m. But there are reasons to be cheerful. By taking over Tandberg Data Overland will be able to cut its operating expenses and expand its markets and so, perish the thought, actually make a profit.

Overland’s boss, CEO and president Eric Kelly, said: “We are excited about our agreement to acquire Tandberg Data, which would create a company which had approximately $110m in annual revenue in our last fiscal year and would provide substantial resources and cost synergies, enabling us to compete more effectively in the marketplace and move toward a clearer path to profitability following integration of the two companies.”

Did the earnings call add any more to this?

Yes. Kelly talked of now having 16,000 channel partners worldwide, a world-class and lower-cost manufacturing facility in China, and geographic expansion in Europe, Asia and the Middle East. He also said: “We will have a comprehensive product line ranging from our high-availability SnapScale clustered NAS, SnapServer DX NAS and Virtual Tape Library to Tandberg's RDX disk-based solutions through our combination of both tape automation product lines.”

Cutting tape

In the combined company tape automation will be “only representing 22 per cent of the total revenue.” Just as well as CFO Kurt Kalbfleisch described pretty dire results in that area: “Tape revenue in the first quarter of fiscal 2014 decreased 30 per cent worldwide, approximately $1.2 million, compared to the immediately preceding quarter and was down 27 per cent or approximately $1m compared to the first quarter of fiscal 2013. This was primarily related to the decrease in sales of our add-on tape drive.”

Kelly added that the acquisition will enable “the acceleration of our strategy of becoming a global leader in data management and data protection marketplace.” Well, yes, it’s good to have a target.

There is a lot of excitement about the Sphere 3D technology which is claimed to give BYOD and smart mobile device owners full access to enterprise apps. The Tandberg deal will help there too, Kelly saying: “We plan to roll out these products over the next 12 months, and we're on track to begin the rollout in the first calendar quarter of next year through a substantially expanded channel network from our combination with Tandberg.”

In detail: “We will offer two different delivery models, an appliance gateway to be installed on premise and a subscription model … providing access to applications via the cloud. We plan to begin a phased rollout of [the] appliance product first, which would include three tiers: an enterprise model, a small and medium enterprise model and an SMB model.”

It looks as if, cross your fingers, pray for a fair wind and no technology hiccups, Overland Storage with Tandberg could become a viable company on its own and, with the Sphere 3D rabbit pulled out of the hat, could become a growth company.

Wow. That will be a problem. Everyone on the industry has gotten used to pissing on Overland and we won’t be able to do it any more if Eric Kelly and his Overland folks come up smelling of roses.

What can we say? Go for it Overland and piss on everyone else for a change. We have our umbrella ready and waiting. ®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
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?