Overland Storage Inc. (OVRL, Financial) filed Quarterly Report for the period ended 2012-04-01.
Overland Storag has a market cap of $57.01 million; its shares were traded at around $2.1 with and P/S ratio of 0.81.
Industry trends. We estimate that the cost of managing digital assets is four times the cost of acquiring storage devices. Furthermore, many SMEs and SMBs are seeking to implement tiered storage for primary and secondary data utilizing a combination of low cost SATA (Serial ATA) drives and high performance SAS (Serial Attached SCSI) drives. IDC estimates that the total networked attached storage (“NAS”) market will grow at approximately 9.1% through 2015, and the growth rate for NAS storage systems in price bands up to $15,000, where most of our Snap Server® solutions lie, is estimated to be 17.3%. According to IDC, tape storage still constitutes approximately 7.3% of the total storage revenue in the global storage market. Sales of tape automation appliances represented 31.9% and 38.2% of our revenue during the first nine months of fiscal 2012 and 2011, respectively.
Net product revenue decreased to $8.9 million during the third quarter of fiscal 2012 compared to $10.7 million during the third quarter of fiscal 2011. The decrease of $1.8 million, or 16.8%, was primarily associated with a decrease of $1.1 million in sales of our NEO® products, and $0.7 million decrease in sales of our OEM spare parts. The decrease in sales of our NEO® products was primarily attributable to the fulfillment of our obligations under the product supply portion of an agreement with our sole OEM customer.
Net product revenue decreased to $25.8 million during the first nine months of fiscal 2012 compared to $34.7 million during the first nine months of fiscal 2011. The decrease of $8.9 million, or 25.6%, was primarily associated with a decrease of $4.7 million in OEM revenue related to the fulfillment of our obligations under the product supply portion of an agreement with our sole OEM customer, $2.0 million decrease in sales of our NEO® products, $1.3 million decrease in sales of our Snap Server® products, $0.5 million decrease in sales of our REO® products, and $0.4 million decrease in sales of our spare parts. The decrease in sales of our Snap Server® products was primarily attributable to two factors: (i) we increased the selling price of our Snap Server® products as a result of the increased cost of disk drives due to the severe flooding in Thailand, which negatively impacted short-term demand for these products; and (ii) the production ramp-up time for our newly launched Snap Server DX SeriesTM has taken longer than originally anticipated, which has caused customers to delay orders.
Net service revenue increased to $18.4 million in the first nine months of fiscal 2012 compared to $17.6 million during the first nine months of fiscal 2011. The increase of $0.8 million, or 4.5%, was primarily due to an increase in our out-of-warranty service contracts. As a percentage of total revenue, service revenue increased 7.9% to 41.4% for the first nine months of fiscal 2012 compared to 33.5% for the first nine months of fiscal 2011.
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Overland Storag has a market cap of $57.01 million; its shares were traded at around $2.1 with and P/S ratio of 0.81.
Highlight of Business Operations:
We reported net revenue of $15.2 million for the third quarter of fiscal 2012, compared to $17.1 million for the third quarter of fiscal 2011. We reported net revenue of $44.3 million for the first nine months of fiscal 2012, compared to $52.6 million for the first nine months of fiscal 2011. We incurred a net loss of $3.8 million, or $0.16 per share, for the third quarter of fiscal 2012 compared to a net loss of $3.4 million, or $0.22 per share, for the third quarter of fiscal 2011. We incurred a net loss of $13.5 million, or $0.57 per share, for the first nine months of fiscal 2012 compared to a net loss of $10.8 million, or $0.83 per share, for the first nine months of fiscal 2011.Industry trends. We estimate that the cost of managing digital assets is four times the cost of acquiring storage devices. Furthermore, many SMEs and SMBs are seeking to implement tiered storage for primary and secondary data utilizing a combination of low cost SATA (Serial ATA) drives and high performance SAS (Serial Attached SCSI) drives. IDC estimates that the total networked attached storage (“NAS”) market will grow at approximately 9.1% through 2015, and the growth rate for NAS storage systems in price bands up to $15,000, where most of our Snap Server® solutions lie, is estimated to be 17.3%. According to IDC, tape storage still constitutes approximately 7.3% of the total storage revenue in the global storage market. Sales of tape automation appliances represented 31.9% and 38.2% of our revenue during the first nine months of fiscal 2012 and 2011, respectively.
Net product revenue decreased to $8.9 million during the third quarter of fiscal 2012 compared to $10.7 million during the third quarter of fiscal 2011. The decrease of $1.8 million, or 16.8%, was primarily associated with a decrease of $1.1 million in sales of our NEO® products, and $0.7 million decrease in sales of our OEM spare parts. The decrease in sales of our NEO® products was primarily attributable to the fulfillment of our obligations under the product supply portion of an agreement with our sole OEM customer.
Net product revenue decreased to $25.8 million during the first nine months of fiscal 2012 compared to $34.7 million during the first nine months of fiscal 2011. The decrease of $8.9 million, or 25.6%, was primarily associated with a decrease of $4.7 million in OEM revenue related to the fulfillment of our obligations under the product supply portion of an agreement with our sole OEM customer, $2.0 million decrease in sales of our NEO® products, $1.3 million decrease in sales of our Snap Server® products, $0.5 million decrease in sales of our REO® products, and $0.4 million decrease in sales of our spare parts. The decrease in sales of our Snap Server® products was primarily attributable to two factors: (i) we increased the selling price of our Snap Server® products as a result of the increased cost of disk drives due to the severe flooding in Thailand, which negatively impacted short-term demand for these products; and (ii) the production ramp-up time for our newly launched Snap Server DX SeriesTM has taken longer than originally anticipated, which has caused customers to delay orders.
Net service revenue increased to $18.4 million in the first nine months of fiscal 2012 compared to $17.6 million during the first nine months of fiscal 2011. The increase of $0.8 million, or 4.5%, was primarily due to an increase in our out-of-warranty service contracts. As a percentage of total revenue, service revenue increased 7.9% to 41.4% for the first nine months of fiscal 2012 compared to 33.5% for the first nine months of fiscal 2011.
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