Quantum Announces Timing for the Reporting of Financial Results and other Business Matters
Update on Accounting Matters
The Company also announced that it has completed its analysis of the Company's past application of standalone selling price (“SSP”) under Accounting Standards Codification Topic 606 ("ASC 606") relating to the classification and recognition of aspects of the Company’s revenue.
Based on this analysis, which was supported by outside experts, the Company currently estimates an increase in previously reported revenue and net income for the fiscal years ended
Additionally, during the Company’s in-depth analysis of its prior financial statements, it identified a series of outstanding warrant agreements issued to its prior and current lenders in 2018, 2020, and 2023, which required further evaluation under Accounting Standards Codification Topic 815 (“Topic 815”). After consulting with external advisors, the Company concluded that its prior classification of warrants as equity was not consistent with Topic 815 and has restated them as a liability. This restatement also requires accounting for the associated change in the fair value of the warrants through the income statement. The Company will now include the warrant liability adjustments for the fiscal years ended
As a result of the changes described above, the Company intends to restate its financial statements for the prior reported periods referenced above. The Company intends to file its Annual Report on Form 10-K covering the restated periods with both the revised SSP and warrant classification on
Other Business Updates
Also today, Quantum announced a revised agreement with its lenders to amend the Company’s existing term loan and revolving credit agreements. These amendments, among other things, waived the total net leverage ratio financial covenant for the quarter ended
About Quantum
Quantum delivers end-to-end data management solutions designed for the AI era. With over four decades of experience, our data platform has allowed customers to extract the maximum value from their unique, unstructured data. From high-performance ingest that powers AI applications and demanding data-intensive workloads, to massive, durable data lakes to fuel AI models, Quantum delivers the most comprehensive and cost-efficient solutions. Leading organizations in life sciences, government, media and entertainment, research, and industrial technology trust Quantum with their most valuable asset – their data. Quantum is listed on Nasdaq (QMCO). For more information visit www.quantum.com.
Quantum and the Quantum logo are registered trademarks of
Forward-Looking Information
The information provided in this press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). These forward-looking statements are largely based on the Company’s current expectations and projections about future events affecting its business. Such forward-looking statements include, in particular, statements related to the Company’s completion of its review of accounting matters, release of financial results for its full year fiscal 2024 ended
These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: the final outcome of the evaluation of accounting matters and the impact of the adjustments to the Company’s financial statements; the discovery of additional and unanticipated information during the evaluation process; changes in assumptions regarding how the evaluation will impact the Company’s financial results; risks related to the timely completion of the evaluation and filing of the Quarterly Reports on Form 10-Q and Annual Report on Form 10-K; the ability to meet stock exchange continued listing standards; the possibility that the Nasdaq may delist the Company’s securities; risks related to the Company’s ability to implement and maintain effective internal control over financial reporting in the future; and the impact of these factors on the Company’s performance and outlook. See also other risks that are described in “Risk Factors” in the Company’s filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240529224838/en/
Investor Relations Contacts:
E: sheltonir@sheltongroup.com
Source: