Quantum Corporation today announced that revenue for its fiscal first quarter, ending July 1, 2001, is currently expected to be in the range of $265 to $275 million, compared to $309 million in the previous quarter. Earnings per share are expected to be in the range of $.10 to $.12, diluted, excluding previously announced special charges Quantum will incur in the current quarter.
"When we began this quarter, we had expected revenues and earnings from ongoing operations to be down slightly compared to the March quarter, as a result of the continued slowdown in information technology spending," said Michael Brown, Quantum's chairman and chief executive officer. "However, like other companies, Quantum has been more significantly affected by the slowdown than anticipated, and we are now seeing weakness in both the U.S. and European markets."
Quantum expects that fiscal first quarter revenues in both its DLTtape Group and ATL/Enterprise Solutions Group will decline on a sequential basis from the prior quarter. The impact of current market conditions is expected to be particularly significant in the ATL/Enterprise Solutions Group because a large percentage of that Group's product revenues comes from sales at the high-end of the storage market, where buying decisions are being put off or delayed.
Quantum's Snap Appliances subsidiary is expected to remain at last quarter's levels, which would still represent year-over-year growth of 55 percent.