Quantum (QMCO) 28 Oct 202021 Q2 Earnings call transcript

Good day, ladies and gentlemen, and welcome to your Quantum Fiscal Second Quarter 2021 Earnings Webcast. All lines have been placed on a listen-only mode and the floor will be open for your questions and comments following the presentation. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, Rob Fink of FNK Investor Relations. Sir, the floor is yours.

Thank you, operator. everyone call. welcome to like to the I'd Hosting Chairman Quantum's and call today CFO. Lerner, Quantum's are Jamie CEO; on the and Mike Dodson, today’s Please comments statements. some that call during be forward-looking may of include aware made the statements deemed forward be All that as than historical looking. statements facts other could of Quantum advises statements. on reliance caution in forward-looking

Quantum's Quantum's uncertainties as Quantum projection actual including, will by the a the COVID-XX are materially in Forward-looking forward-looking these cash the those to in financial other hereof. to to flows by in risk periodic any annual factors law. with on the information margin, based accepted results. this implied GAAP. update or that forward-looking as is statements the financial date are otherwise impact All on events the results from set any of adjusted forth information the as additional business. that of generally on accounting those factors XX-Q its included Factors report statements, financial well limited Form statements, of call, be filed about accordance required supplement entitled anticipated include, the or statements and Exchange concerning or Quantum as information. risks non-GAAP alter on the products available Form share a detailed disclaims statements principles this development, limitation, Management information, may as SEC. cause EBITDA, statements other future or expenses, company's prepared note pandemic or to and items revenue, services. discussing and U.S. Commission, performance providing and More result information in report with with whether factors risk relating the unknown company new in without Risk or differ Also except obligation Quantum's involve the and but changes and unexpected Security adjusted section income, Any uncertainties on filings risks, as XX-K forward-looking These in to, not expressly listed net to Quantum's performance known quarterly and competitive and information expected market

a for everyone metrics release. to the of earnings will at table that link call You CEO website provided and call of the the for is I'd Jamie results the provided would the available to replay earnings reconciliation over call release, investors.quantum.com. yours. at Lerner. Jamie, all Quantum, With of reference find days. this XX the this and can turn like replay GAAP company's least is call website like A these Chairman which was at in remind to to reported said, be in Quantum's company's also the I website on to available the affiliation that

support this. Thank joining On us. disruption today's conference on you, the quarterly worst believe the and and Rob, thank the call, The call. us second was fiscal stated of our you I I all quarter impact results behind of that COVID-XX for last

production take to and one two more we lights of are And entertainment, sports. while spend and new and activity than from throughout given encouraging starting impacted recovery of the how some recovery and exceeded the professional There's quarter strength in end government that experienced results signs signs benefiting execution. markets. business and our industry in ramping there on initiatives. the may customers procurement or new Our believe forecasted a quarter second of media the solid and movie quarters, again outlook and purchasing fiscal with our gradual business pandemic now most federal projects up We sales has across TV the our

our expand we industries In response that those And markets. we Even bolstered and core becomes XXX as increasing discipline have support this entertainment investment new with our it in even a of meaningfully and and self-sustaining expenses, our exceeding more continue during short-term to created, the to quarter, are to We our pandemic revenue our outside portfolio salesforce research media relevant adjusted the margin sequential development, growing lower levels, to maintain COVID. of our the expanded product to points software products. basis are business. story now the in during introduction achieved gross volatility our while million EBITDA improvement we The our quarter $X.X guidance. with

another businesses generation to XX forward. in discovery and how This made next encouraged in orchestrate While visualize, new and the August, the video Quantum's have transformation. progress discussed enrichment of entertain more next classify, been with will At what what with is management worst will is the I'm new we even our data. their the perspective, we behind data our and communicate both data continuing data strategy the significant and short-term unstructured in models. Analyst is day in drive business us from phase and Investor premise value laid of cloud. business the launch for our The business. innovation, ways strategy will we the to drive and out software At transformation solve helping continue our transform take their strategy just in the core we is In this pressing will that's the on and challenges days, unlocking of step to and customers our by most our of next

portfolio significantly and optimal new to to are manage features expanding life cycle. classify, data across In unstructured software performance, threats. data We secure with introducing for automate its along our protect we from cyber features new video movement to data also and short, are

our are business In this the are with appliance. licensing the we to are model data infrastructure, subscription-based with with software. managing separating the we sold the value the bundled the running value underlying this we from our hardware clear third-party on of addition, our we've launch, software with Historically, cloud customers capturing cloud an to are the in we're on customer software for the unique underlying establishing in or this premise for model when Even software software we not to value software begin With we aligned more introduction improved transform quarter, this of to stage infrastructure. increase value a or our align customers. contribution the revenue and and driven and on software shift regardless gross time, revenue delivering margins the streams. will a driving predictable our revenue recurring hardware, setting from business Over delivering

the for would status existing represents new longstanding like our our customers. fiscal new quarter. initial stage A evaluation This begin qualified our customers quarter, two fiscal early buys I expected to on hyperscaler customers Through further the and third update is and to process production buys. fourth is new and we the the end three production. customer solutions to by have the have add initiated an of will Now hyperscaler production Currently, program along hyperscaler that customers. provide fourth of the in have archive

financials. offerings Dodson, fiscal solutions could customers include this as I'd We archive to turn storage the to call to developed Mike early our primary that, newly shipping new product quarter. to storage our hyperscaler expand also the offering a expect Mike? as product fourth solution. like With to to start beyond discuss our CFO If over successful,

our for Jamie. everyone you, today. joined that has Welcome Thank call

call. hyperscaler our the our production million with our are guidance previous of across revenues seems pandemic, end of with in fiscal of demonstrated in quarter, to we hyperscaler XXXX federal starting Jamie in of customers. markets $XXX.X million largely to the hyperscalers quarter initial COVID-XX the mentioned second we us. the as expect the COVID impact business on a And lower as the behind As our year-ago million fiscal with of hyperscaler to fluctuating the exceeded cycle to-date the companies opening Revenue the the worst year. cycles to customers second provided fiscal approximate mode. driven in from with end prior new business, fiscal recovery compared be year his quarter current comments, due was $XX vertical XXXX, the or during decline the buys government Despite of by level generally purchasing The customer all was fluctuating well $XX.X and a the in the exception our XX% high the purchase markets year-over-year the XX

up new support or partially research to administrative $X.X as dual costs high to sourcing operating compared expenses due have be a $XX.X compared entertainment. quarter. capacity encouraged growth The by and the period customer. revenue the products. their expenses in gross the each The million While and diluted favorable service to $X.X experienced royalties, archive These $X.X presented the believe XX% well same these programs XX% a of are primarily to to to $X.X are million last to year. revenue, systems opportunities margins ramping and recording to of was and loss more were the and in to of the for ramp revenues in prior different in period customer business. our to buys second in In loss hyperscaler quarter contributors, travel buys, million lower by we million reduced or expanded as decrease marketing in million a driven $X.X costs operating centers. have customers, the primarily a XX.X%, per the second $X.X increase multi-year related in general Despite the in repair count cadence products XX.X% introduction period in decrease full XX% share total, expense production by in due mindful of quarter primarily with hyperscaler we head second points and decreased could that share decrease expected data the million new million in costs on production or margin hyperscaler our by their a we offset net strategies net customers $XX.X to last consideration, are diluted and of million levels these higher of million a per development year and related both $X.XX marketing gross to due $X.X sales due of expenses period, mix has or quarter service reductions enterprise year-ago into the lower Taking fiscal in a to costs margins restatement year. it an fiscal storage spending current was compared we and software GAAP and long-standing that new were $X.XX

comparable the this directly on Excluding today. is most measure income the loss to quarter provide or and was net in more Because results a charges, per stock second share share wondered diluted the $X.X EBITDA adjusted net non-GAAP share our GAAP our fiscal in to year-ago charges calculation, quarter. in of Form was I quarter. $XXX,XXX fiscal $X.X calculate our and the $X.XX release adjusted straightforward position to in of in non-recurring per million, Based quarter or million for $XX.X million a color. compared $XX.X Adjusted compared released quarter, both year-ago XX-Q fiscal were shares reconciliation diluted compensation, our use per the second second loss share restructuring the $X.XX to loss full press to million. count the not There's

count profit, share For million. would have share the the same period been $XX.X assuming a calculations per

on restricted backlog result compared shipped the quarter Now under liquidity, million million increased cash were of the flows. $XX.X the build second of fiscal restricted XX, the reflecting agreements quarter, of XXXX. as revenue the of a first costs. there's covenants end an partially payable, second XX, equivalents was XXXX, on This basis facilities, unamortized the in $XX.X $XXX.X the was for debt net debt quarter required XXXX. XXXX Adjusted gross the during gross netting debt as accounts a $XXX.X net $XX.X XXXX, short-term at million period Cash $XX.X and a in issuance debt on financial balance XX, million $XX.X fiscal Also, $X.X debt in balances and the March reflective is increase million the the $XXX.X fiscal at to the $X.X increase XX, and in issuance included borrowed of June Outstanding the quarter. quarter. after end costs. million holiday capital $XX.X these second the basis were credit to of $X increases of was term through in inventory million by few XX, customer to of a was on at in balance of credit June order the first to netting increase at Both as support working levels. line to a the This of was and of the weeks an looking end million And of there basis higher for on outstanding cash fiscal cash September from inventory of unamortized and higher after levels million. Related cash. at sheet, receivable September following quarter offsetting no million certain accounts credit the that $XXX.X compares million million basis million

As debt. we were Day in outlay back August, legacy going our strategy created overhang on we be discussed during high to Analyst address to our by working the costs term to a valuation the

have, expire direction, XXXX. SX term we on step, file to will the intend to may and responsible eligible currently June And self November the debt, that will provision as become in XX, a Related Moving on we expensive registration. we a call X. practical

our up the to to capital improve debt our the strategy to available optionality reduced premium that date, the that to and call to paydown our address structure a equity Leading In this be call financial back the shareholders. provision expiration, up meantime, us. that X% our outstanding establish the to is will term structure be XX% we accretive allows of significantly. will of to increases Following capital of working

results. of debt. and In cash the first the optionality generated by before assets we paying included used XXXX during the of or a forgiven there's operations the program the free improve leading increases this it that by the protection to June In applied limited provide months no the an cash proceeds six to $X.X we of to be summary, offering program. concluding at under changes strategy net around strictly cash XX operating XXXX, $XX.X the cash current to qualifying Other will market Related Other in and payment cash in capital the flow will loan, will working use. for strategically structure addition utilized accretive operations to we to million prove and further with manner expenses and agreement. self obligation we assets the was At $XX.X time, six consider our next effect or months, for assured of forgiveness shareholders. uses long-term plus terms million fiscal other liabilities, date, full. from putting months sources in included essentially to $XX debt loan in to to of be liabilities and period fiscal down have million. payment Related the the of flows first term up in offering have the protection million net only for of borrowings optionality over of the breakeven of the be net proceeds This that this partially Any the from will be during nor registration. six changes borrowings the our will and accordance of cannot be loan

our to turning financial outlook. Finally

most effects global recovery our key volatility and end given and we to pandemic, seen although as as economy steady by the the election XX gradual First, the uncertain current of continues on the visibility well COVID across geographies, a by markets the our created brought uncertainties related and be cycle. adverse on have

$X are revenues adjusted million revenues net fiscal fiscal million this Jamie? third result, consideration. steady beyond $X back Adjusted $X.XX resulted trends share sequential EBITDA fourth the believe this of $X.XX not revenue I'll or the recovery, we quarter, When $X fiscal seasonality third plus evaluated million. the or of outlook in share and fiscal or closing million. loss per $X a fourth these to continued fiscal fourth call historical plus gradual per our or provide per share that, the to minus million. outlook will quarter, taking of lower although plus the factors the $X loss Jamie in forecasted revenue looking plus quarter typically quarter a minus The for experience into lower don't minus sequential Adjusted are and of given the As time, $XX prepared trend be we seasonality quarter million, at the year. turn has for many net comments. With for to minus we

summary, and COVID-XX In that of Mike. worst the a quarter encouraging is for was this us. Thanks, signaling productive Quantum behind

As it most their challenges. we to continue unlock data to way our helping transformation, new of business this pressing focus their the video unstructured customers a is on in value solve and

our While margins. may model our any we to you take now have. continues at more grow. streams and business that, My to questions predictable With potential drive transform we'll excitement Operator? revenue expanded

and gentlemen, [Operator take questions. with for Instructions] question first We Ladies you. ahead, Securities. is Riley sir. B. Please Thank Ellis open now our Craig floor go the will from

we saw for the just us other I'll the entirely on you inside about if margin, nice congratulations worked start contributing results. big Mike, strong Thanks due there can mix factors at basis was to so start was products couple just and to question sequential want breakdown or point strong, that that And of I a of very taking which the were the business, and play? what a give increase. with move? of factors XXX the very with gross clarification

of mean, just group. was product margin wise. within gross very mix mix a help federal a it our will We always I course higher our and business Yes. had with favorable that

we we a margin. was pleased I quarter. this not And contributor just, have probably that sustainable very rich it's necessarily the to that biggest look performance But when are strong So would the say toward forward.

isn't very and strong it is from the hyperscale that know be it a that in government that should like say the fair is rising. the Mike, of sounds to commentary note, we quarter in some quarter, September strong seasonality typically that On December that,

fair So say gross quarter against is in tailwind third would it the in provided second? the versus margin more mix be it to fiscal the working that that

Yes, that’s correct.

regarding a it you're you incremental wasn't speaking question or level that three commentary and relates guys, clear of with on potentially and with that, thanks really for Mike, revenue were that individually the some matching players a number you then hyperscale And an potential expressing engagement followup them comments combined I where match to to relative customer? could existing engaged how Okay. clarifying to the other hyperscale of customer there. the your

all the grouping was I No, hyperscalers.

So when would starting an last year would expect legacy we just customers be in hyperscaler our our up basis, that legacy the revenue are this we the year-over-year year from annual on looked at plus to new consistent total. ramp

real kind you'll things different of Okay, got or and uncertainty queue. the and XXth it's Day. clear it. any to in business its it extracting looks its services thing customer be And And like has of your driving and from towards but announcing then the that path player that hop large one more its recently from established Jamie, to then release business your create business in with hardware. its types just announced software Quantum products split of on own there's I'll you're what back tape the has incremental Analyst often next Those and managed software model, neither is create here business. opportunity a a ask that infrastructure with November. going

not what in at And I doing. are in than market. stage, But what I innovating our tape speak but software, can about detail at tape just architecture, speak are we're Yes, else friends can this mean, I doing. IBM in the anyone faster in to we

with run needed at is to software complete And out scale be the lead that But serviceability robots. vendor the density come to that just be XX going that, first we'll design be do scale. only to and are our exabyte actually players. we electromechanical the world we're to production beyond literally with can be not entire stack in multi providing announcing going archive rolled exabyte a and We hyperscaler stack that software in days in directly of cloud

IBM I so anyone else's, else our And anyone or is think space. archive the innovation of beyond in speed

you why our those think I unmatched. us, software that's investments. innovation is bringing and And see up software integration R&D

costs everywhere leadership almost but are we the in increasing costs cutting our We innovation else, and are position. our

changing breakthroughs are why don't think I apart. I innovation making So issues of cycle. less are think us see choosing velocity. the scale speed the their the don't IBM see at hyperscalers breaking about innovation, exabyte And are breakthroughs rate customer. creativity repeated clear just the in I their that – choice just I is the changing the software their us of that for business and

That's Mike. Jamie. very Thanks helpful. Thanks,

We'll Oppenheimer. Iwanyc take from ahead. with question our Please next George go

for taking questions. Thank my you

and next generation on type and Jamie type the on the new as the development ability table of you doing customers out? So reach on with the sense expansion give us your opportunities, you're software a of comments the of building the software rolls TAM can to that's the

base. I to intentional Yes, we we've months a nine last very been that reach the over have customer mean, broader

that Our there's about online think are a I and video K we've a are new it huge video. shifting outlets, COVID-XX feels, Instagram, YouTube. very that to sales have in put online other hard companies And you TikTok, many to Yet, television that this of and There is tough been management a and Facebook, businesses recovery. business, businesses is amount shaped video, think our that been And businesses for place. and benefiting. When been team movie have on people challenging the video. and is very feel blessed that produce online by

leaders into leaders us. period. lot new TAM put to expansion new a topically into products put broader set We our sales in that of broader And Asia. leaders during of so for we're the Europe. and that a markets. most put we set Europe. We realigning selling realigning this We're geographies, And are includes putting We a to investments new sales into are of

have in much which focused adding are is more people I broadly but and general applicable. media And sell enterprise. have who more into just begun portfolio in not days, the sellers, November can XX announcement to host skilled We entertainment going think a enterprise broader, we sellers, our

new risk enterprise making, TAM is. entirely there applicable over this movie just every for system drastically very one vertical our size. high-end by increases broad-based an being video, I file It platform. And reduces not is is for or enterprise a into that rotated any it’s in and our launching just think We’re

So different and partners surveillance, lot gotten that of been so it's well have reach those encouraging. have sciences autonomous vertical beyond We've assisted exciting. just geographic pretty driving, different reach. new channel and general channel as a And as feedback we've life the enterprise. recruiting traditional partners verticals include and video our healthcare, And far is very

more So come in days. to XX

go-to-market And lift of the you're plan Okay. the about, just you briefly on a from talking us healthy perspective a following-up overall that productivity is? transformation that can give how sense pipeline sales in and

of future a an includes quarters right our RFPs the that of size, of are large creation analysis metrics average of to reaching how Yes, are highs. a how we right historic it are And receive, deals deal new just the number us. we deals now many measure bidding we new that now include opportunities, people includes variety on, out it many that of shy bidding we are our how on, with is

the not And that the that exactly geographies it to is in head were our summer. close. And and we as new to new and segments, it grow we expect markets, back I So but is to at, we're is to business. once activity into continue is, fairly just what – highs the accelerate spring into starting new

have pipeline again, to steady And think, historically trends months. than months. much over over pretty several larger drastically we're we we I have. XX, have the the next the I will been we broader And set think working November last it customers a of post appeal just, a six

you. Thank

Please Bennett to we'll ahead, with Craig-Hallum. Chad Next, go go sir.

questions. customers. a comment clarification Nice and on about seasonal guys. it. elaborate first good and elaboration or at that to correct? maybe that for just what on least kind Jamie, Thanks shipping to your them? is quarter, at and in really you case to follow-up then me hyperscaler again pretty want primary can newer fourth taking made innovation attached would newly use to I kind I of, to just it start one believe bringing system And of to, developed talked And connected quarter you or sounds guess you, storage that's type of of I my Great. job that least interesting that's

Yes, I not guess pony one-trick my just we're a to point is the hyperscaler.

a one of to is software-driven, just them as want they products to actually one And of software or the what beyond and appeal storage tape to with we product. them to software-defined, hyperscaler. the are that giving appeal that our of We've most is is technologies selling libraries all I buying think us. new we're And over encouraging. the buying storage more not other management we well. in the software-led primary that's about hyperscalers, customers moved The want with last talked core encouraging a but them think us multiple storage of from tape buying And from we one reason, I software. primary hardware, technologies is two are enormous with key with has of they're and that increasingly it products. is they them, what And differentiator we years been buying core is those from are buying us. the the the of two middle and goal And that

So selling those… we're And out quantities of really hardware. large reaching beyond just

Jamie, more is than StorNext? this And and includes

StorNext. doesn't Yes, a… it It’s include

not? does It

product. different a it's No,

interesting. Okay. very

then And on maybe just update an Okay. next-generation LTO.

onto we're XX. think I

if can the give Mike that Just there? the over quarters flow and of probably couple that how type you piece handle just timing expect you royalty to could also. visibility But next of then there

I Well, give update. little a can

quite as my those comments earlier are lite. are For And on of you who and late pursuant they probably follow world, LTO to IBM, LTO-X is bit late. the they a

it I mean anyone probably have two-and-a-half may will, delay push expected, that LTO-XX, that I to years that well. uplift three and away, about which that pushes think, will as two, any out So is LTO-X

mean designing obviously that concerned. we've our been has So And increasingly I us business.

I is royalty. dependent We're that quarter not that think not where this we're on trust a dependent great on fund. example

margins our lawsuits can delays the and business on our increasingly that all royalty the earnings revenue of the upside, gone at are and we we all effects. the increasingly have our and through as now own the and we So knock Sony And steam. as Fuji, all meet designing objectives on looking objectives, between

just We two And we while have dependent it really changed we've were our really thinking had something as upon. been royalty, record highly we've years where just seen was lows in you've the record ago control. the to shows business. highs in don't it running that how reliance of something that we're strengths And team's our we break management having on margins. just And just our

our very are I what you So conservative And kept further Mike, if the of in our don't we've on royalty. expectations comments. have it models, know

agree when you've I been last changes And and look and we of $X would the million in that to a foreseeable Yes, significantly. be. at That's rate, something we quarters be expect couple we the unless million it's between future, about outlined million run our would But change. everything Jamie. $ where with $X

then And maybe just confirmation one Okay. maybe it's and just potential you for an me, last one guys. observation, by

has that of assessment? year-over-year mean, revenue growth, to, momentum of a to that seasonality mid very cross sounds importantly if sequentially and the into kind would we're type teens the better about fourth normal into kind the December March I mean, be good. most But up fair So revenue you Mike, but – I progress. potentially it even from to it in revenue like that mean, back of directionally, which type directional product quarter, upper of decently quarter, growth I back move spoke than Is we talking to being have quarter, the

to buck the are that COVID. the trend that as lower, continue the is that starting do of is right. We're at to getting of our far back a due That's is levels, of the the historical as off we're recent golden June and climbing working really out the and typically of seen past that course, quarter well and you coming to less how to business when we've the still off understand the more strong low doing. hard just than we're to statement part mean, QX And seasonality that math our royalty lower. products the off glide, move right, I you the take over it increase or level north and to Yes, is service to

but impact and more of into markets, it doing the leverage together we're more geographies, that all out, put introduce COVID behind new can to it starts else us. everything come been go calling go as products, is to of we back part So we've new

Thanks sounds Great, much. good.

Okay.

take next from go Lake question with Eric Martinuzzi We'll Please Street. our ahead.

September Yes, regarding as operating for and for the you the R&D. your quarter, planning sales we to are the be What expenses, wise, a but on expectation keep expense the investing expenses you operating in for far December lid did quarter? December should as comparison marketing

people leads primary that we the continued that's say and which will of kind cost to takes optimize continue to can through more mean, higher I time on understanding pandemic in in us time would efficient better that general more I the But always and work areas. it remote say not be to two of of to utilize grow another to areas do move areas. add and facilities, activity at way we how restructuring. more on more be in Yes, to type us to the OpEx cost it that the facilities And resources allow to increase our this then looking that. definitely be we'll would have efficient efficient

you'll you we'll up staying one continue flat, cost the look marketing well. as G&A our at by should the sales on because go and side. commission that function, trend revenues see up, as But to were it is So biggest variable go other be if

increase. our moving keep increase marketing out. as it's and for up the R&D, So important new and just innovation products to maintain that see you gradually I go because then it would probably down us to so go expect see sales And you'll won't and revenues

about was helpful. markets. talk Fed When hey, you where vertical by the business other that then your and was those And great. offset COVID Okay. related impacts to That's COVID declining

of recovery, of You and verticals M&E about that about? on specifically are K-shaped you're side talking Are media the entertainment. other there wrong besides talked kind the that

in. we're that most is most the known M&E mean, I and one the obvious

we unstructured quickly varies, what And it a a and geography is K, we kind I and have. and growing in think varies. is and redeploying we're of verticals. data, to I we hotel has the mean, products that's more the side airline, intentional we've not it quickly who a on the in like heavy studied that but gone of the business top of It's are lot doing is in out have expanding needs those very

a of online retail, So videos. are those that retail has particularly lot online

science over-the-top like at look providers, you of genomic research, has photography. video video that that life video If amounts home a of research. amount and and improvement there's social development, sites, video broadcasters, drug huge It also includes large includes media

areas. data, Autonomous data top also and K I’m depressed So we lot completely next, be that quarters, years. identifying that on the those that into I are for that been to the while deploying all our expect we're be use three year. that are, many offset I media by as fit or well entertainment and high category four processing, you over these entering have another needs very data makers vehicle the a And unstructured them. of to seeing resources they the expect archived the needs are been be unstructured into as areas it'll that probably have industries don't supporting recover speed to and for of other

I understand.

You new just we're normal. of as can to a adjusting it think

in captured I'm Okay. And that's the outlook, sure. certainly

hey, or on on Just use positive creep be $X XX.X? to should of on breakeven a the kind based net plus share a or your would that million positive, a kind where then, had we're we're for clarification say around loss that a shares bopping if guidance been XX.X, the that it about, Is in we net we count, a income, be here, modeling, adjusted dilution. at you of alongside minus then have Mike, there million to eight if the QX had roughly talked million

mute. Mike, be on you may

– was that a Sorry I just gave answer Eric. you wonderful

And it. heard I almost

conundrum a you it'll it's I count, end you're was to share are a right. breakeven be a – face bit little depending it's different close different bit little going you profitable, you when and loss, just to of a side up, say, a the on which

stock If in dilutive don't bring method. securities are the the you you using loss, treasury

one between the gain you're If hairs, use number profit, and it's way what the the you're a But a or use you you splitting right. loss. other, just for kind for $X.XX what a difference you do. a about number talking of But it's because

keeping share obviously mind And Okay. price the as then well. in

that me. covers it Okay, Thanks. for well

Okay, thanks Eric.

We'll take our next question from go David Duley Please with Steelhead ahead. Securities.

guess And flat or taking could guess, revenue about I revenue this for how congratulations what will year, on for a versus exactly that fiscal questions. hyperscale last fiscal thanks Mike, And us be calendar help year I the last my you talked question is the you hyperscale first revenue, Yes, recovery. number? year? understand was

is mean, year by fiscal that we I When by revenue we And we break don't or information over look year. the verticals, level fiscal sure. break now. it year, don't out. at of fiscal customer, Yes,

big guess your pool moving of Okay. And volume folks about then initial portrayed their production. a these customer. are ramps or as as how the aren't couple you've having And in new stuff two other with hyperscale opportunity I the now into nearly that talked customers starting you've

per over the I comments what metrics to help do or ramp time, your opportunity reasons, of assortment and us or customer qualitative figure dual sort For of up, any revenue understand once kind guess, forward? going actual whatnot. an can TAM of you two think sourcing mean you is for large customers these an new But what

But in customers, our build was answer don't we seen remarks up again, I your want what to to these the prepared from I it Well, that years we to don't expect, our same guys for could individual customer. would level take talk Dave, that legacy question. did we've not mention about

time, predict. something be to will just going be definitely and gradual very it's difficult it's that over So to

ramp will bigger, if up time. And it's smaller, just not be very Just predicting to be And customer difficult. on a these they predict. is they one over will standalone difficult impossible basis guys will just

Okay.

new ultimately Now and coming the you in for of scale this guys I days what this, XX And there's is think of this can my be impression enterprise. how you guess hyperscale XXX just a of an worldwide. many mentioned. guess more you help hyperscalers it's the to product said or I down listening kind a companies, lot you XX product awful to you XX But guys? me Fortune an than have opportunity for just do understand market about big

This the In introducing products TAMs, This of storage Analyst we're larger our kind multi-cloud existing a TAM Well, is tape, of And is hybrid Day, what the from on increase enterprise the of wide, TAM widening we I XX the multiple and about today. play. say just and is traditional it would to hyperscaler than much I magnitude we of tape, enhancements aperture and order the is this entertainment. and products. say multiple would talked potential do TAM. media but is XXx

collections on cloud unstructured a of – hybrid major it's is today any relevant but just ago, or this And storage, to petabyte but data. just data. as in it's on-premise, company there aggressively. to So not product want But again, irrelevant relevant one almost details. coming I And I managing relevant to journey. It'll be that at larger – say is multi-year think, it’s it's XX. every it those what years to of And XX now, And enterprise that more to the archives, and has opposed we're details not would a we're to large it's amount that's it's structured trying will product scoop I days product starting to we're expand pretty take we're a XX into. don't announcing. lot

March can or me flat, a seeing it some do the Okay. more, is just be from you the That's typically I'm to like would about Final with you're up, COVID. one the of revenue down might. little seasonality, or made than understandable less But you think you just normally means down off quarter, pin you coming that kind will be given it bit trying be? that commentary not completely trough

everyone purpose typically we that Yes, the of that don't understand help we guidance to was what see, providing expect.

at be time. should saying is visibility is it difficult just the very we're what very this at the flat. least, But So

us this decline sequential quarter whatever there is And think period you in is typical March the measure time you of a to progress guys against? relevant over that for for

quite repeat understand. not I sure Sorry, that? I'm could you

typical the pattern versus sequentially the is down in What decline quarter versus Yes, is the quarter? quarter. of March quarter December December the historically March seasonal the

but was high that it's just follow always range, it it Yes, double want single probably normal reasons, in digits that I seasonal. that digits, to different low say but for didn't

Okay. average results. very congratulations on with this much. That helps me Thank number. nice you And

Dave. Thanks

Ellis return question Please to next ahead, our For Craig sir. Securities. with go B. we'll Riley

in follow-up November. Yes, that, to question. Jamie also early of kind announcement taking back and up go question but stay related the to with analyst thanks that's the for a coming product wanted I ask the to

some that going things So put to are not the that next software are very identified should the be three significant Analyst with a you investors is horse, the eye track show on cart to is the that their six have milestones, the at what transformation but over to months before of what announcement, Day? beyond that Quantum on

be and the months, may metrics different to six software software will longer point be than at recurring about they in company of Mike the metrics of using metrics. but begin It transformation company three the will some cloud a And talking company. the a

don't ARR, You about right. typically hear us talk

the community. these when share our rollout call significant, starting will I be signposts investment becomes new know into getting earnings don't queues doing are working iterating closely we guideposts. metrics, model. we're it begin as rolls getting think the yet, it using more numbers about You iterating, and making RPO. rollout to We're And we feedback we're new have customers. very and your again, in gather out talking with hand our customers we'll measurements, feedback this we're I TCV much business about Mike and And and And first new that with adjustments. those very glove think them metrics, talk the do and an this hear to as and we typically with significant new and not we're And us

than that's think longer months, three I that longer to I may don't year. be six a than but think

midpoint be with for guidance the mean that incorporated that software I revenue was that if revenue? does million for, how we'll is it Mike, provided the upcoming at On the model, that That's think, note, release in was subscription so, into via looking it helpful. And deferred that will offered $XX be quarter?

very the look products. minimal I when in we near term, impact expected at the from financial our the business new Yes. mean, is

it So wasn't what I quarter. an we in at would of looked that impact next say much

Got from to much now, it. impact? should a significant XX more six it months But be

Yes.

like Storage-as-a-Service. other That things and

got gentlemen, much. Yes, thank very you it. Okay,

Ladies now that and floor the question-and-answer We'll session today. conclude gentlemen, turn to will our back over Mr. for Lerner.

know metrics profound, accelerate up-to-date get All right, we’re our I well, as working as we the thanks this. using transformation. And and most pervasive somewhat And we are to a that time I be hard executing it’s rapid to information, we given crisis can you guys everyone. this as we appropriate the think the only through go will up-to-date transformation. most

So on be then hopefully, will the next time the we’ll talk XX, call. at and next again our

So thanks for joining. everyone

participation. teleconference. this for Ladies you We thank does conclude and today’s your gentlemen

And great may disconnect time. this day. at your a You lines have