Summary by Futu AI
Quantum Corporation reported Q3 FY2025 revenue of $72.6 million, a slight increase of 1% from $71.9 million in Q3 FY2024. Product revenue grew 4% to $38.6 million, while service and subscription revenue declined 4% to $31.6 million. Gross margin improved to 43.8% from 40.6% year-over-year, driven by a more favorable product mix and operational efficiencies.The company continued its cost optimization initiatives, with operating expenses remaining flat at $35.6 million despite increased restructuring charges. Sales and marketing expenses decreased 13% to $12.4 million, while research and development costs declined 12% to $7.7 million. However, general and administrative expenses rose 19% to $14.1 million due to higher compliance-related costs.Quantum faces significant liquidity challenges, expecting to violate its net leverage covenant by Q1 FY2026. The company entered into a Standby Equity Purchase Agreement in January 2025, providing access to up to $200 million in potential equity funding. Management is actively pursuing additional funding options and implementing operational improvements to address the going concern issues.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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