SAN DIEGO, California - Overland Data, Inc. (NASDAQ/NMS:OVRL) reported today that
revenues for its first fiscal quarter ended September 30, 1997 totaled $14.0 million,
up 17% from revenues of $12.0 million in the same quarter of the prior year. Net income
for the quarter amounted to $177,000, or $.02 per share, compared to $325,000, or $.04 per
share, in the prior year, reflecting an increase in marketing and administrative
expenditures in support of the Company's popular LibraryXpress product line and
future growth.
The Company reported that strong sales of its DLTTM-based LibraryXpress product
line were made possible by a continually improving supply of drives from Quantum. This
gain was partially offset by declines in its more mature 18/36-track product line in
Europe and 9-track product line worldwide. Gross margins declined compared to the prior
year as a result of a higher level of sales to OEM's and upper-level distributors and
price pressure in the marketplace.
Scott McClendon, Overland Data President and CEO stated: "As expected, our first
quarter was seasonally slow, so we did not see sequential revenue growth over the fourth
quarter of last year. Nonetheless, we are pleased with our progress during the quarter.
New OEM customer agreements were announced with Digital Equipment Corporation, Siemens
Nixdorf and NCR for our flagship LibraryXpress products, which we expect will contribute
to increased revenues during the remainder of fiscal 1998. We have initiated new marketing
programs to promote the LibraryXpress and have added some key people to strengthen our
team. Additionally, the development of our new tape technology is proceeding well and we
hope to be able to announce a product path in the near future."
Overland Data is a technology leader in high-performance scaleable tape solutions for
high-capacity backup, interchange, HSM and archival storage. The Company offers three
complete technology choices: DLT, 18- and 36-track, and 9-track, designed for
workstations, networks and midrange systems. Overland's award-winning products meet
the needs of end users, distributors and OEMs in industries worldwide.
-- Table Follows --
| Except for the factual statements made herein, the information contained in this press release consists of forward looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those contained in such statements. Factors that could cause or contribute to such differences include unexpected shortages of critical components, rescheduling or cancellation of customer orders, the timing and market acceptance of new product introductions by the Company and its competitors, and general competition and price pressures in the marketplace. Reference is also made to other factors set forth in the Company's filings with the Securities and Exchange Commission including the "Risk Factors", "Management's Discussion and Analysis" and other sections of the Company's Form 10-K for the most recently completed fiscal year. |
OVERLAND DATA, INC. |
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CONSOLIDATED STATEMENTS OF OPERATION |
||||||||
(Unaudited) |
||||||||
(In thousands, except per share data) |
||||||||
Three Months Ended |
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September 30 |
||||||||
1997 |
1996 |
|||||||
| Net sales ................................ | $ 13,998 |
$ 12,013 |
||||||
| Cost of goods sold ....................... | 9,338 |
7,568 |
||||||
| Gross profit .................................. | 4,660 |
4,445 |
||||||
| Operating expenses: | ||||||||
| Sales and marketing ............................ | 2,107 |
1,780 |
||||||
| Research and development ........... | 946 |
1,115 |
||||||
| General and administrative ........................ | 1,531 |
950 |
||||||
| Total expenses............................... | 4,584 |
3,845 |
||||||
| Operating income .......................... | 76 |
600 |
||||||
| Other income (expense), net .......... | 210 |
(58) |
||||||
| Income before income taxes .......... | 286 |
542 |
||||||
| Income taxes ................................. | 109 |
217 |
||||||
| Net income ...................................... | $ 177 |
$ 325 |
||||||
| Net income per share ....................... | $ 0.02 |
$ 0.04 |
||||||
| Shares used in computing | ||||||||
| net income per share ........................ | 10,983 |
8,137 |
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* DLT is a claimed trademark of Quantum Corp. worldwide. All other products are trademarks
or registered trademarks of their respective companies.
