Quantum(US:QMCO)2025-02-12 21:10Revenue Performance - Revenue for the fiscal third quarter of 2025 increased to $72.6 million, compared to $71.9 million in the same quarter of the prior year, representing a year-over-year growth of 1%[9] - Total revenue for the three months ended December 31, 2024, was $72,551,000, a slight increase from $71,926,000 in the same period of 2023, while total revenue for the nine months ended December 31, 2024, decreased to $214,364,000 from $240,099,000 in 2023[31] Profitability Metrics - Adjusted EBITDA improved to $4.7 million, a $5 million sequential increase from the previous quarter[12] - Adjusted EBITDA for the three months ended December 31, 2024, was $4,715,000, compared to an adjusted EBITDA loss of $2,602,000 in the same period of 2023, while for the nine months ended December 31, 2024, adjusted EBITDA was $1,325,000, up from $562,000 in 2023[42] - GAAP gross profit was $31.8 million, with a gross margin of 43.8%, up from 40.6% in the prior fiscal year quarter[9] - Gross profit for the three months ended December 31, 2024, was $31,755,000, an increase from $29,181,000 in 2023, while gross profit for the nine months ended December 31, 2024, decreased to $87,159,000 from $97,556,000 in 2023[31] Net Loss and Adjustments - GAAP net loss was $71.4 million, or ($14.56) per share, which included a non-cash adjustment of $61.6 million related to warrant liabilities[11] - The net loss for the three months ended December 31, 2024, was $71,433,000, compared to a net loss of $9,869,000 in the same period of 2023, and for the nine months ended December 31, 2024, the net loss was $105,780,000, up from $22,342,000 in 2023[31] - GAAP net loss for Q4 2024 was $71,433,000 compared to a loss of $9,878,000 in Q4 2023[43] - Adjusted net loss for Q4 2024 was $3,960,000, improving from an adjusted net loss of $8,515,000 in Q4 2023[43] - Adjusted net loss for the nine months ended December 31, 2024, was $21,147,000, compared to $17,049,000 in the same period of 2023[43] Debt and Interest Expenses - Total interest expense for the third quarter was $6.8 million, compared to $3.9 million for the same period a year ago[17] - Outstanding term loan debt increased to $105.9 million, up from $87.3 million as of December 31, 2023[17] - The company reported a significant increase in interest expense, which rose to $6,840,000 for the three months ended December 31, 2024, compared to $3,937,000 in 2023, and for the nine months ended December 31, 2024, interest expense increased to $16,761,000 from $10,992,000 in 2023[31] Operational Expenses - Operating expenses for the three months ended December 31, 2024, totaled $35,615,000, slightly up from $35,397,000 in 2023, and for the nine months ended December 31, 2024, operating expenses increased to $115,678,000 from $112,625,000 in 2023[31] Cash and Liquidity - Cash, cash equivalents, and restricted cash at the end of the period for December 31, 2024, was $20,603,000, down from $24,549,000 at the end of the same period in 2023[33] - The company reported a net cash used in operating activities of $20,345,000 for the nine months ended December 31, 2024, compared to $20,727,000 in the same period of 2023[33] Future Guidance and Strategic Focus - The company expects revenue guidance for the fiscal fourth quarter of 2025 to be approximately $66 million, plus or minus $2 million[18] - The company is focused on reducing outstanding debt and has entered into a standby equity purchase agreement to enhance capital access[5] Product Performance - New product successes include multi-million dollar contracts for DXi data protection appliances and ActiveScale solutions, indicating strong market traction[6] Shareholder Information - The weighted average shares outstanding for the three months ended December 31, 2024, was 4,907,000, compared to 4,751,000 in 2023, indicating a slight increase in shares[31] - Total weighted average shares for Q4 2024 were 4,907,000, up from 4,751,000 in Q4 2023[43]