In This Story
Quantum Corporation (QMCO-8.35%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing total revenue of $72.6 million, an increase from $71.9 million in the same quarter the previous year. Product revenue rose by 4% to $38.6 million, while service and subscription revenue decreased by 4% to $31.6 million.
Cost of revenue for the quarter was $40.8 million, resulting in a gross profit of $31.8 million. The gross margin increased to 43.8% from 40.6% in the previous year.
Operating expenses totaled $35.6 million, with sales and marketing expenses decreasing by 13% to $12.4 million, and general and administrative expenses increasing by 19% to $14.1 million.
The company reported a net loss of $71.4 million for the quarter, compared to a net loss of $9.9 million in the previous year. The increase in loss was primarily due to a change in the fair value of warrant liabilities.
Cash used in operating activities was $20.3 million for the nine months ended December 31, 2024. Cash provided by financing activities was $19.4 million, primarily related to borrowings on the Term Loan.
Quantum identified material weaknesses in its internal control over financial reporting related to the application of standalone selling price under revenue recognition guidance and accuracy of sales order entry.
The company has entered into a Standby Equity Purchase Agreement, allowing it to sell up to $200 million of common stock over the next three years.
Quantum is evaluating strategies to obtain additional funding and has classified its Term Loan and PNC Credit Facility as current liabilities due to expected covenant violations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Quantum Corporation quarterly 10-Q report dated February 12, 2025. To report an error, please email earnings@qz.com.