Breaking News

Dollar General Raises Offer for Family Dollar to $80 Per Share in Cash
Tweet TWEET

Overland Storage Reports Third Quarter Fiscal 2013 Results

Overland Storage Reports Third Quarter Fiscal 2013 Results 
SAN DIEGO, CA -- (Marketwired) -- 05/15/13 --  Overland Storage
(NASDAQ: OVRL), a trusted global provider of effortless data
management and data protection solutions across the data lifecycle,
today reported financial results for its fiscal 2013 third quarter
ended March 31, 2013. 
"We continue to execute on our overall strategy and expand our
addressable markets with the successful introduction of new solutions
in the data management and data protection marketplace," said Eric
Kelly, President and CEO of Overland Storage. "We are also encouraged
by the strong growth of our disk based products last quarter and the
growing pipeline from our recently announced SnapScale clustered NAS
solution."  
Product Highlights: 


 
--  SnapServer revenue increased 7.3% in the third quarter compared to the
    preceding quarter, led by a 54% increase in SnapServer DX Series 2U
    platform sales.
    
    
--  SnapSAN revenue grew 24% sequentially in the third quarter, driven by
    strong S3000 and S5000 revenue.
    
    
--  SnapScale pipeline has grown to an excess of $10 million since January
    2013.

  
Third Quarter Fiscal 2013 Financial Results:  


 
--  Net revenue for the third quarter of fiscal 2013 was $11.6 million,
    compared to $12.6 million for the second quarter of fiscal 2013 and
    $15.2 million in the third quarter of fiscal 2012.
    
    
--  Product revenue for the third quarter of fiscal 2013 was $6.9 million,
    compared to $7.8 million for the second quarter of fiscal 2013 and
    $9.0 million in the third quarter of fiscal 2012.
    
    
--  Gross margins for the third quarter of fiscal 2013 were 33.1%,
    compared to 36.5% in the second quarter of fiscal 2013 and 31.1% in
    the third fiscal quarter of 2012.
    
    
--  Operating expenses for the third quarter of fiscal 2013 were $9.0
    million, compared to $8.7 million in the second quarter of fiscal 2013
    and $8.4 million for the third quarter of fiscal 2012.
    
    
--  Stock compensation expense was $1.2 million in the third quarter of
    fiscal 2013, compared to $1.3 million for the second quarter of fiscal
    2013 and $1.1 million for the third quarter of fiscal 2012.
    
    
--  Depreciation and amortization was $0.3 million in the third quarter of
    fiscal 2013 compared to $0.3 million in the second fiscal quarter of
    2013 and $0.4 million in the third quarter of fiscal 2012.
    
    
--  Net loss for the third fiscal quarter of 2013 was $5.1 million, or a
    loss of $0.17 per share, compared to a net loss of $4.3 million, or a
    loss of $0.15 per share, in the second quarter of fiscal 2013 and a
    net loss of $3.8 million, or a loss of $0.16 per share, in the third
    quarter of fiscal 2012.
    
    
--  Cash and cash equivalents at March 31, 2013 was $14.1 million,
    compared to $10.5 million at June 30, 2012. At March 31, 2013, the
    Company had $3.5 million outstanding under its credit facility and
    $13.25 million outstanding under its convertible notes.
    
    
--  Completed private placements of convertible notes and common stock
    resulting in aggregate gross proceeds to the Company of $14.25
    million.

  
Recent Awards and Nominations: 


 
--  SnapServer DX Series NAS storage arrays won Hardware Product of the
    Year in the 2013 Network Computing Awards.
    
    
--  SnapScale X2 clustered NAS has been named a finalist as Data Center
    Hardware Product of the Year and nominated as Network Computing's New
    Product of the Year Award, Network Product Guide's Best Storage
    Solution and the American Business Awards New Product of the Year
    Award.
    
    
--  Overland has been awarded the 5-Star Partner rating in CRN's 2013
    Partner Program Guide, the definitive listing of manufacturers and
    software publishers that service the IT Channel.

  
Patent Litigation: 
 The International Trade Commission has agreed and
has granted Overland's petition to review the initial findings of the
Administrative Law Judge regarding its patent lawsuit. It has been
and continues to be Overland's position that the BDT FlexStor II
products do infringe on Overland's Patents. If the Commission
reverses the Administrative Law Judge's initial findings, Overland
expects the Commission to enter an exclusion order instructing the US
Customs Department to stop the libraries from being imported into the
United States by BDT. The exclusion order would go into effect after
a 60-day presidential review period.  
Investor Conference Call: 
 Overland will host an investor conference
call today, Wednesday, May 15, at 5:00 pm ET (2:00 pm PT) to discuss
the Company's third quarter fiscal 2013 financial results. To access
the call dial (877) 941-8416 (+1 (480) 629-9808 outside the United
States) and when prompted provide the pass code "Overland Storage" to
the operator. Participants are asked to call the assigned number
approximately 10 minutes before the conference call begins. In
addition, a live and archived webcast of the conference call will be
available over the Internet at www.overlandstorage.com in the
Investor Relations section. A replay of the conference call will also
be available via telephone by dialing (800) 406-7325 (+1 (303)
590-3030 outside the United States) and entering access code,
4618527#, beginning 8:00 p.m. ET on May 15, 2013 through 11:59 p.m.
ET on May 22, 2013. 
About Overland Storage
 Overland Storage is a 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. Overland SnapScale(TM),
SnapServer(R), SnapSAN(R), NEO(R) and REO(R) solutions are available
through a select network of value added resellers and system
integrators. For more information, visit
http://www.overlandstorage.com/. 
Safe Harbor Statement
 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. 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, but are not
limited to: our ability to maintain and increase sales volumes of our
products; our ability to continue to aggressively control costs and
operating expenses; our ability to achieve the intended cost savings
and maintain quality with our new manufacturing partner; our ability
to generate cash from operations; the ability of our suppliers to
provide an adequate supply of components for our products at prices
consistent with historical prices; our ability to raise outside
capital and to repay our debt as it comes due; our ability to
introduce new competitive products an
d 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; our ability to enforce our intellectual
property rights and protect our intellectual property (including the
outcome of our ongoing patent litigation); 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. 
Connect with Overland Storage:
 Read the Overland blog:
http://overlandstorage.com/blog 
 Follow Overland on Twitter:
http://www.twitter.com/OverlandStorage 
 Visit Overland on Facebook:
http://www.facebook.com/OverlandStorage 
Overland Storage, SnapScale, SnapSAN, SnapServer, NEO Series, REO
Series and the Overland logo are trademarks of Overland Storage,
Inc., that may be registered in some jurisdictions. All other
trademarks used are owned by their respective owners. 


 
                                                                            
                                                                            
                           OVERLAND STORAGE, INC.                           
              CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS               
                   (In thousands, except per share data)                    
                                                                            
                                  Three Months Ended     Nine Months Ended  
                                       March 31,             March 31,      
                                 --------------------  -------------------- 
                                    2013       2012       2013       2012   
                                 ---------  ---------  ---------  --------- 
                                      (Unaudited)           (Unaudited)     
Net revenue                      $  11,642  $  15,152  $  35,952  $  44,332 
Cost of revenue                      7,790     10,442     23,560     30,013 
                                 ---------  ---------  ---------  --------- 
Gross profit                         3,852      4,710     12,392     14,319 
                                 ---------  ---------  ---------  --------- 
                                                                            
Operating expenses:                                                         
  Sales and marketing                4,662      3,760     13,140     12,298 
  Research and development           1,669      1,723      4,857      6,357 
  General and administrative         2,659      2,917      8,308      9,046 
                   
              ---------  ---------  ---------  --------- 
    Total expenses                   8,990      8,400     26,305     27,701 
                                 ---------  ---------  ---------  --------- 
                                                                            
Operating loss                      (5,138)    (3,690)   (13,913)   (13,382)
Interest income                          -          -          3          - 
Interest expense                      (179)       (43)      (267)       (78)
Other income (expense), net            235       (141)        76         66 
                                 ---------  ---------  ---------  --------- 
Loss before income taxes            (5,082)    (3,874)   (14,101)   (13,394)
Provision for income taxes               4        (54)       121         73 
                                 ---------  ---------  ---------  --------- 
Net loss                         $  (5,086) $  (3,820) $ (14,222) $ (13,467)
                                 =========  =========  =========  ========= 
                                                                            
Net loss per share:                                                         
  Basic and diluted              $   (0.17) $   (0.16) $   (0.50) $   (0.57)
                                 =========  =========  =========  ========= 
                                                                            
Shares used in computing net                                                
 loss per share:                                                            
  Basic and diluted                 29,390     23,881     28,534     23,435 
                                                                            
                                                                            
                                                                            
                           OVERLAND STORAGE, INC.                           
              CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS               
                   (In thousands, except per share data)                    
                                                                            
                                                 Three Months  Three Months 
                                                     Ended         Ended    
                                                   March 31,    December 31 
                                                 ------------  ------------ 
                                                     2013          2012     
                                                 ------------  ------------ 
                                                  (Unaudited)   (Unaudited) 
Net revenue                                      $     11,642  $     12,599 
Cost of revenue                                         7,790         8,002 
                                                 ------------  ------------ 
Gross profit                                            3,852         4,597 
                                                 ------------  ------------ 
                                                                            
Operating expenses:                                                         
  Sales and marketing                                   4,662         4,353 
  Research and development                              1,669         1,591 
  General and administrative                            2,659         2,765 
                                                 ------------  ------------ 
    Total expenses                                      8,990         8,709 
                                                 ------------  ------------ 
                                                                            
Operating loss                                         (5,138)       (4,112)
Interest income                                             -             - 
Interest expense                                         (1
79)          (46)
Other income (expense), net                               235           (47)
                                                 ------------  ------------ 
Loss before income taxes                               (5,082)       (4,205)
Provision for income taxes                                  4            68 
                                                 ------------  ------------ 
Net loss                                         $     (5,086) $     (4,273)
                                                 ============  ============ 
                                                                            
Net loss per share:                                                         
  Basic and diluted                              $      (0.17) $      (0.15)
                                                 ============  ============ 
                                                                            
                                                                            
Shares used in computing net loss per share:                                
  Basic and diluted                                    29,390        28,339 
                                                                            
                                                                            
                                                                            
                           OVERLAND STORAGE, INC.                           
                     SELECTED BALANCE SHEETS INFORMATION                    
                               (In thousands)                               
                                                                            
                                                   March 31,      June 30,  
                                                     2013           2012    
                                                 ------------  -------------
                                                  (Unaudited)   (Unaudited) 
ASSETS                                                                      
Cash and cash equivalents                        $     14,148  $      10,522
Accounts receivable, net                                6,331          9,193
Inventories                                            10,832         10,658
Other current assets                                    3,017          3,779
                                                 ------------  -------------
  Total current assets                                 34,328         34,152
Property and equipment, net                             1,894          1,446
Other assets                                            2,184          2,662
                                                 ------------  -------------
  Total assets                                   $     38,406  $      38,260
                                                 ============  =============
                                                                            
           
                                                                 
LIABILITIES & EQUITY (DEFICIT)                                              
Current liabilities                              $     27,470  $      26,759
Long-term debt                                         13,250          3,500
Other long-term liabilities                             4,075          4,960
Shareholders' equity (deficit)                         (6,389)         3,041
                                                 ------------  -------------
  Total liabilities and equity (deficit)         $     38,406  $      38,260
                                                 ============  =============

  
Investor Relations Contact:
Todd Kehrli or Jim Byers
MKR Group Inc.
323-468-2300
ovrl@mkr-group.com 
 
 
Press spacebar to pause and continue. Press esc to stop.