-- Total branded products revenue, excluding service, increased 21.7%
sequentially and 3.2% over the same period a year ago.
-- The SnapServer® and SnapSAN™ series of disk based products
increased 53% over the prior quarter and 95% in the same quarter in the
prior year.
-- NEO SERIES® tape products increased 10.7% from the prior quarter.
-- Gross Margins for the quarter were 31.1%, up 750 basis points from the
first quarter and up 250 basis points from the same quarter in the
prior year.
-- The Company generated $3.0 million in other income from the sale of a
minority interest in proceeds the company may receive in connection
with the current IP litigation.
-- The Company launched the SnapSAN™ S1000, a new entry in the midrange
SAN marketplace. The S1000 has a modular, scalable, dual controller
architecture and was designed to anchor our SnapSAN™ portfolio and
expand our total available market.
About Overland Storage
As a leading, global specialist in backup, recovery and archive, Overland
Storage is focused on helping IT departments address data protection and
data retention challenges by incorporating innovative solutions with
world-class service and support. Overland provides smart, affordable,
end-to-end data protection solutions that are engineered to store smarter,
protect faster and extend anywhere.
Overland Storage products include award-winning SnapServer® network
attached storage products; SnapSAN™, NEO SERIES® tape libraries; and
REO SERIES® disk-based backup and recovery appliances. Overland Storage
sells its products exclusively through a select network of
value-added-resellers, system integrators and OEMs. The company has shipped
more than 350,000 units to small and medium-sized businesses, as well as
large enterprises in over 60 countries across the globe. 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 raise outside capital to adequately fund our
operations and to service and repay debt as it comes due; 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; 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 Capital 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, Snap Server, SnapSAN, 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 Six Months Ended
December 31, December 31,
----------- ----------- ----------- -----------
2010 2009 2010 2009
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Net revenue $ 17,930 $ 20,432 $ 35,503 $ 39,745
Cost of revenue 12,357 14,599 25,778 28,704
----------- ----------- ----------- -----------
Gross profit 5,573 5,833 9,725 11,041
----------- ----------- ----------- -----------
Operating expenses:
Sales and marketing 4,349 4,546 8,945 8,820
Research and
development 1,727 1,464 3,481 2,921
General and
administrative 3,106 2,581 6,666 5,260
Total
expenses 9,182 8,591 19,092 17,001
----------- ----------- ----------- -----------
Operating loss (3,609) (2,758) (9,367) (5,960)
Interest (expense)
income, net (351) (338) (717) (722)
Other expense, net 3,128 592 2,772 558
----------- ----------- ----------- -----------
Loss before income
taxes (832) (2,504) (7,312) (6,124)
Income taxes 77 76 95 148
----------- ----------- ----------- -----------
Net loss $ (909) $ (2,580) $ (7,407) $ (6,272)
=========== =========== =========== ===========
Net loss per share:
Basic and Diluted $ (0.07) $ (0.47) $ (0.63) $ (1.29)
=========== =========== =========== ===========
Shares used in
computing net loss
per share:
Basic and Diluted 12,659 5,474 11,769 4,866
OVERLAND STORAGE, INC.
SELECTED BALANCE SHEET INFORMATION
(In thousands)
December 31, June 30,
2010 2010
------------ ------------
(unaudited)
ASSETS
Cash $ 6,797 $ 8,852
Accounts receivable, net 11,921 13,257
Inventories 9,458 9,941
Other current assets 6,094 6,551
------------ ------------
Total current assets 34,270 38,601
Property, plant and equipment, net 814 804
Other assets 4,740 4,920
------------ ------------
Total assets $ 39,824 $ 44,325
============ ============
LIABILITIES & EQUITY
Current liabilities, excluding debt $ 28,409 $ 31,047
Debt, current portion 3,539 5,171
Other long-term liabilities 6,361 5,441
Shareholders' equity 1,515 2,666
------------ ------------
Total liabilities and equity $ 39,824 $ 44,325
============ ============
Contact Information: CONTACT INFORMATION: Investor Contact: Abhi Kanitkar ICR, Inc. abhi.kanitkar@icrinc.com 646-277-1237 Media Contact: Elizabeth Zaborowska Bhava Communications overland@bhavacom.com 510-219-8127