Quantum Corporation, this week announced first quarter pro forma net income for fiscal year 2002, ended July 1, 2001, of $17 million, or 11 cents per share, diluted, excluding both the gain recorded on the disposal of the company’s hard disk drive business and non-recurring items. Total revenue for the quarter was $279 million.
Storage solutions revenue for fiscal Q1, which includes revenue from Quantum’s ATL/Enterprise Solutions and Snap business groups, was $73 million. Combined fiscal Q1 revenues from tape drives, media, and media royalties in Quantum’s DLTtape(TM) Group were $220 million. Sales of Super DLTtape(TM) contributed about 10% of DLTtape Group revenue, as additional OEMs and library partners — such as Dell, StorageTek, and ADIC — began shipping Super DLTtape products. DLTtape media sales also continued to serve as a stable source of revenue and cash, totaling $81 million for the quarter.
In addition to reporting its fiscal Q1 earnings, Quantum announced today a restructuring of its DLTtape business which it hopes will improve cost competitiveness over the long-term. A key element of the restructuring is the transfer of remaining tape drive production from Colorado Springs to Penang, Malaysia. The restructuring, in total, is expected to result in the elimination of approximately 370 regular and 130 temporary positions and could achieve annualized cost savings of up to $30 million by the end of fiscal 2002. As a result of the restructuring, Quantum expects to take a special charge of $15-20 million in the September quarter.
