Summary by Futu AI
Quantum Corporation reported financial results for its second quarter of fiscal year 2024 ended September 30, 2023. Total revenue decreased 25% year-over-year to $75.7 million, primarily due to lower demand from hyperscale customers and declines in the linear-tape open media market. Product revenue fell 33% to $42.9 million, while service and subscription revenue dropped 7% to $30.5 million.Despite lower revenue, gross profit increased to $32.7 million from $29.3 million in Q2 FY2023, with gross margin improving to 43.3% from 29.1%. This was driven by a more favorable product mix and operational efficiencies. Operating expenses decreased 7% to $36.4 million, reflecting cost reduction initiatives across the business.The company reported a net loss of $3.3 million, compared to a $7.4 million loss in the same quarter last year. Quantum noted ongoing macroeconomic challenges, including longer sales cycles with enterprise and commercial customers. The company has also entered into several debt amendments since September 2023 to address financial covenant compliance and support business initiatives.
