Feeds

Foxy investor ruffles feathers in Quantum’s hen house – fresh claim

Starboard wants stumbling storage biz to install new directors

Internet Security Threat Report 2014

Activist investor Starboard Value wants board-level changes at troubled storage gear maker Quantum, it's claimed.

Quantum’s latest results showed falls on an annual basis in both its fourth quarter and full-year revenues. The company has been cutting its costs as tape-based revenues – 65 per cent of its business – continue a steady, multi-year decline.

Quantum is eagerly awaiting increased revenues from its DXi deduplicating disk appliance and software file management (StorNext), while object storage (Lattus) revenues grow enough to replace the lost tape business.

So far that has not happened - and DXi revenues declined in the quarter.

Starboard, which has been involved with Quantum for a year or more, holds 16.6 per cent of Quantum’s stock. According to reports, Starboard wrote in a letter to the storage biz on 9 May nominating three directors for election to the board at the next AGM: they are Christopher F. Crowell, Dale L. Fuller and Edward Terino.

Quantum had already agreed in May last year to appoint Jeff Smith of Starboard to its board, as well as nominating Philip Black and Louis DiNardo for election to the Board at the 2013 AGM. All three are now on the board. That gave Starboard three out of the nine seats. If Starboard gets its way and scores three more that gives it six seats, a majority, and thus control of the company.

Quantum CEO Jon Gacek, and its non-Starboard board members must have been expecting this response to its latest woes by Starboard. They’ve let the fox into the boardroom hen house.

If Starboard gains a boardroom majority, Quantum’s business strategy could change markedly – and company asset sales, market segment exits, a merger, and even an outright sale could all be on the table. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
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.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.