Summary by Futu AI
Quantum Corporation reported Q1 fiscal 2024 revenue of $71.3 million, down 23% from $92.5 million in Q1 2023, primarily due to a $20 million decrease in hyperscale customer demand and overall tape market declines. Product revenue fell 30% to $41 million, while service and subscription revenue decreased 11% to $27.4 million.Gross margin declined to 36.6% from 38.5% year-over-year, impacted by lower revenue and less favorable product mix. Operating expenses increased 8% to $43.9 million, largely due to non-recurring costs related to financial restatement projects. The company reported a net loss of $20.8 million compared to a $9.1 million loss in the prior year period.On August 13, 2024, Quantum secured amendments to its credit agreements, including covenant waivers and $26.3 million in additional term loan capacity. The company borrowed $10.5 million at closing and issued warrants for 7.6 million shares. Management believes these amendments provide sufficient liquidity and revised covenants to continue operations.
