Overland: Fiscal 3Q14 Financial Results - Revenue up 74% with Tandberg

Overland Storage, Inc. reported financial results for its fiscal 2014 third quarter ended March 31, 2014.

Eric Kelly, president and CEO, said: "During the quarter, we completed the first phase of our continuing integration of Tandberg Data ahead of plan, and we continue to make good progress with our integration activities which are projected to be complete by the end of the calendar year. Through this process, we remain focused on leveraging the increased scale and resources of the combined company to maximize the growth opportunities we see with our expanded product and service portfolio, as well as the launch of our integrated virtualization and storage solutions, which we expect to occur in the next few months. We are seeing very positive customer responses to the combination of Overland and Tandberg, and believe that once fully integrated, we will achieve the operational efficiencies to enable us to become a profitable and growing company."

Recent Highlights:

• Completed acquisition of Tandberg Data Holdings S.a r.l., a privately held global leader of storage and data protection solutions on January 21, 2014.
• Executing on strategic relationship with Sphere 3D to deliver a new purpose built VDI appliance and software-defined storage solution, which will include Overland's NAS platform and be delivered through channel partners.

Third Quarter Fiscal 2014 Financial Results
The following financial results for the third quarter of 2014 reflect contribution from the Tandberg acquisition for a partial quarter from January 22, 2014 through March 31, 2014 resulting in the exclusion of twenty-one days of Tandberg operations from Overland's. On a pro forma basis, net revenue for the three months ended March 31, 2014 is $22.3 million.

Net revenue for the third quarter of fiscal 2014 was $20.2 million, compared to $11.6 million for the third quarter of fiscal 2013 and $10.6 million in the second quarter of fiscal 2014.
Product revenue for the third quarter of fiscal 2014 was $15.8 million, compared to $6.9 million for the third quarter of fiscal 2013 and $6.6 million in the second quarter of fiscal 2014.
      
Gross margin for the third quarter of fiscal 2014 was 32.5%, compared to 33.1% for the third quarter of fiscal 2013 and 34.5% in the second quarter of fiscal 2014.
      
Operating expenses for the third quarter of fiscal 2014 were $13.4 million, compared to $9.0 million in the third quarter of fiscal 2013 and $8.2 million for the second quarter of fiscal 2014.
      
Stock compensation expense was $1.0 million in the third quarter of fiscal 2014, compared to $1.2 million in the third quarter of fiscal 2013 and $0.8 million in the second quarter of fiscal 2014.
Depreciation and amortization was $0.9 million in the third quarter of fiscal 2014 and $0.3 million in both the third quarter of fiscal 2013 and the second quarter of fiscal 2014.
      
Net loss for the third quarter of fiscal 2014 was $6.6 million, or a loss of $0.44 per share, compared to a net loss of $5.1 million, or a loss of $0.87 per share, in the third quarter of fiscal 2013 and a net loss of $4.3 million, or a loss of $0.59 per share, in the second quarter of fiscal 2014.
      
Cash and short-term investments at March 31, 2014 were $7.3 million, compared to cash of $8.8 million at June 30, 2013. At March 31, 2014, the company had $4.4 million outstanding under its credit facilities and $9.5 million outstanding under its convertible notes.