-- Revenue for the third quarter of fiscal 2010 declined 8.8% to $18.6
million from $20.4 million for the prior quarter and 16.6% from $22.3
million for the third fiscal quarter of 2009.
-- Net loss remained relatively flat at $2.5 million for the third quarter
of fiscal 2010, or $0.42 per share, compared to $2.6 million, or $0.47
per share, for the prior quarter.
-- Cash and cash equivalents as of March 31, 2010 were $9.9 million, an
increase of 73.7% from $5.7 million as of December 31, 2009.
-- We recorded an income tax receivable of $2.0 million resulting from a
change in tax law which allows us to carry back our net operating
losses five years.
"This past quarter marks the one-year anniversary of our embarking on our
new strategy and transition plan. We have established several new strategic
partnerships, successfully launched several new products, completed the
financing required to execute on our business plan and aggressively cut
expenses to decrease losses," remarked Mr. Kelly. "We believe that these
efforts will enable us to position the Company for a successful future."
About Overland Storage
Overland Storage is the trusted global provider of effortless data management and
data protection solutions across the data lifecycle. By providing an integrated range of
technologies and services for primary, nearline, offline, archival and
cloud data storage, Overland makes it easy and cost effective to manage
different tiers of information over time. Whether distributed data is
across the hall or across the globe, Overland enables companies to focus on
building their business instead of worrying about data growth. Overland
SnapServer®, NEO® and REO® solutions are available through a select
network of value
added resellers and system integrators. For more information, visit
www.overlandstorage.com
Except for the factual statements made herein, the information contained in
this news release consists of forward-looking statements that involve
risks, uncertainties and assumptions that are difficult to predict. This
report contains certain forward-looking statements that involve risks,
uncertainties and assumptions that are difficult to predict. Words and
expressions reflecting optimism, satisfaction or disappointment with
current prospects, as well as words such as "believes," "hopes," "intends,"
"estimates," "expects," "projects," "plans," "anticipates" and variations
thereof, or the use of future tense, identify forward-looking statements,
but their absence does not mean that a statement is not forward-looking.
Such forward-looking statements are not guarantees of performance and our
actual results could differ materially from those contained in such
statements. Factors that could cause or contribute to such differences
include: our ability to maintain and increase sales volumes of our
products; our ability to continue to aggressively control costs; the
continued availability of our non-OEM accounts receivable financing
arrangements; our ability to achieve the intended cost savings and maintain
quality with our new manufacturing partner; our ability to generate cash
from operations or raise outside capital to adequately fund our operations
and to service and repay debt as it comes due; our ability to introduce new
competitive products and the degree of market acceptance of such new
products; the timing and market acceptance of new products introduced by
our competitors; our ability to maintain strong relationships with branded
channel partners; our ability to maintain the listing of our common stock
on The NASDAQ Global Market (Global Market); customers', suppliers' and
creditors' perceptions of our continued viability; rescheduling or
cancellation of customer orders; loss of a major customer; general
competition and price measures in the market place; unexpected shortages of
critical components; worldwide information technology spending levels; and
general economic conditions. Reference is also made to other factors
detailed from time to time in our periodic reports filed with the
Securities and Exchange Commission. These forward-looking statements speak
only as of the date of this release and we undertake no obligation to
publicly update any forward-looking statements to reflect new information,
events or circumstances after the date of this release.
Overland, Overland Storage, SnapServer, GuardianOS, Snap Enterprise Data
Replicator, REO Series, REO, NEO Series, and NEO are trademarks of Overland
Storage, Inc.
OVERLAND STORAGE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
(Unaudited) (Unaudited)
Net revenue $ 18,618 $ 22,276 $ 58,363 $ 83,528
Cost of revenue 13,948 15,932 42,652 60,738
--------- --------- --------- ---------
Gross profit 4,670 6,344 15,711 22,790
--------- --------- --------- ---------
Operating expenses:
Sales and marketing 4,677 5,280 13,497 22,092
Research and development 1,481 1,697 4,402 7,672
General and administrative 2,839 2,632 8,099 8,087
--------- --------- --------- ---------
Total expenses 8,997 9,609 25,998 37,851
--------- --------- --------- ---------
Operating loss (4,327) (3,265) (10,287) (15,061)
Interest (expense) income,
net (418) (109) (1,140) (8)
Other expense, net 337 139 895 (324)
--------- --------- --------- ---------
Loss before income taxes (4,408) (3,235) (10,532) (15,393)
Income taxes (1,902) 70 (1,754) (30)
--------- --------- --------- ---------
Net loss (2,506) (3,305) (8,778) (15,363)
Deemed dividend on preferred
stock (144) -- (144) --
--------- --------- --------- ---------
Net loss applicable to common
shareholders $ (2,650) $ (3,305) $ (8,922) $ (15,363)
========= ========= ========= =========
Net loss per share:
Basic and Diluted $ (0.42) $ (0.78) $ (1.67) $ (3.60)
========= ========= ========= =========
Shares used in computing
net loss per share:
Basic and Diluted 6,341 4,258 5,358 4,257
OVERLAND STORAGE, INC.
SELECTED BALANCE SHEET INFORMATION
(In thousands)
March 31, June 30,
2010 2009
----------- ----------
(Unaudited)
ASSETS
Cash $ 9,876 $ 5,456
Accounts receivable, net 12,272 12,690
Inventories 10,934 12,492
Income tax receivable 2,075 -
Other current assets 6,898 7,410
----------- ----------
Total current assets 42,055 38,048
Property, plant and equipment, net 788 1,107
Other assets 5,182 7,897
----------- ----------
Total assets $ 48,025 $ 47,052
=========== ==========
LIABILITIES & EQUITY
Current liabilities, excluding debt $ 32,350 $ 33,647
Debt, current portion 4,918 7,025
Long-term debt, net of current portion - 693
Other long-term liabilities 5,019 5,802
Shareholders' equity 5,738 (115)
----------- ----------
Total liabilities and equity $ 48,025 $ 47,052
=========== ==========
Contact Information: CONTACT INFORMATION: Kurt L. Kalbfleisch VP Finance and CFO Email: 858-495-4211