Q1 2027 Quantum Corp Earnings Call Transcript
Key Points
- Revenue of $80.8 million exceeded guidance of $75 million, driven by strong demand for ActiveScale and tape storage solutions.
- GAAP gross margin reached 39.3%, up 360 basis points sequentially and nearly 400 basis points year over year, the highest level in five quarters.
- Adjusted EBITDA was positive $8 million, $5.5 million above the high end of guidance, and non-GAAP adjusted net income was positive for the first time since 2023.
- The company is now debt-free with $54.6 million in cash, eliminating interest expense and strengthening its balance sheet.
- Backlog increased significantly, with a dramatic rise in deals valued over $1 million, including a hyperscaler deployment in APAC valued at over eight figures.
- Supply chain constraints, particularly tape drive and certain disk drive availability, continue to limit the company's ability to fulfill strong customer demand.
- The company expects only modest sequential revenue growth to $82 million in Q2 due to ongoing supply constraints, with no clear inflection point yet.
- GAAP net loss was $155.3 million due to one-time non-cash charges related to debt extinguishment and convertible notes.
- Operating expenses are expected to increase sequentially in Q2 due to higher sales commissions and increased R&D hiring, pressuring EBITDA guidance.
- The company remains cautious on gross margin outlook due to component shortages and pricing volatility, despite recent improvements.
Ladies and gentlemen, greetings and welcome to Quantum Corporation fiscal first-quarter 2027 conference call. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
It is now my pleasure to introduce your host, Quantum's General Counsel, Tara Ilges. Please go ahead.
Good afternoon, and thank you for joining today's conference call to discuss Quantum's fiscal first-quarter 2027 financial results. With me on today's call are Hugues Meyrath, Quantum President and Chief Executive Officer; and William White, our Chief Financial Officer. Following management's prepared remarks, we will open the call up to questions from analysts.
Before we begin, I would like to remind you that comments made on today's call may include forward-looking statements. All statements other than statements of historical fact should be viewed as forward-looking, including any projections of revenue, demand, backlog, supply constraints, margins, expenses, adjusted EBITDA,
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