Overland Storage enhances product service and support offerings

Overland Storage, Inc. the trusted global provider of effortless data management and data protection solutions across the data lifecycle, today announced enhanced OverlandCare service offerings for the company’s entire line of SnapServer NAS, SnapSAN, NEO Series tape products and REO Series VTL solutions. Featuring new onsite service and installation options, round-the-clock phone access to solution experts, as well as proof of concept and architectural design offerings, the expanded OverlandCare program strengthens the company’s ability to provide comprehensive technical assistance on a global scale. The enterprise-class components and flexibility of the tiered offering also empower Overland channel partners to easily customize and sell complete service and support solutions to meet customers’ specific needs.

 

Overland’s new centralized global solution call center integrates with its regional solution call center infrastructure across all of the company’s product lines. This network of solution centers provides a framework of support and services designed to enable customers to spend less time managing their infrastructure and focus more on technology innovation to grow their business.

 

Key Benefits of OverlandCare

• Significant investment by Overland Storage in infrastructure and solution call center resources to ensure quick response and one-call resolution for customers
• 24x7x365 global call center technical support now available on all Overland Storage products
• Optional four-hour onsite support now available worldwide on all SnapServer NAS, SnapSAN, NEO Series Tape and REO Series VTL products
• Onsite installation services and support for the entire Overland Storage line of data backup and data protection products
• Proof of concept and architectural design services available for the deployment of complex solutions within customers infrastructure
• Warranty certification delivery system, featuring automatic electronic distribution of warranty certificates and entitlement validation
• Secure service portal, including online product registration and access to services-related information such as the ability to track and log service calls in real time

“Strengthening our services offerings for all Overland Storage products worldwide is an important component of our commitment to making enterprise-class support and services available to companies of all sizes,” said Eric Kelly, CEO of Overland Storage. “Even as the amount of data constantly grows, we believe that the technology to store, manage and protect that data should be easy to buy, easy to deploy and easy to maintain so that companies can focus on their primary business activities. Our enhanced OverlandCare offerings further our ongoing commitment to deliver effortless data protection and data management solutions to the market.”

SnapServer Sales increased 53% over the prior quarter - Overland Storage

Overland Storage, Inc. reported second quarter results for its fiscal quarter ended December 31, 2010.

Eric Kelly, President and Chief Executive Officer of Overland Storage, said: "With the support of our channel partners worldwide, we are executing on our plan to increase sales of our higher margin branded products and services. Branded product sales grew 21.7% sequentially and total branded revenue is now 92.3% of total sales, up significantly from the prior quarter," said Kelly. "Additionally I am happy to report that our revenue, gross margin and operating expenses for the first half of FY 2011 were all within the guidance that we previously announced. In addition to achieving these financial objectives, we introduced a new SAN product line and a new NAS product into the marketplace as planned."

Net Revenue for the second quarter of fiscal 2011 was $17.9 million, an increase of 2% from the prior quarter and a decrease of 12.2% from the second fiscal quarter of 2010. The net loss for the quarter was $0.9 million, or $0.07 per share, compared to a net loss of $6.5 million, or $0.59 per share, in the prior quarter and net loss of $2.6 million, or $0.47 per share, in the second quarter of 2010. Gross margins for the second quarter of fiscal 2011 were 31.1%, a significant increase from 23.6% the prior quarter, and an increase from the 28.5% in the second quarter of fiscal 2010. Operating expenses were $9.2 million, an improvement of $0.7 million from $9.9 million the prior quarter, including $1 million in non-cash stock compensation expenses in each quarter. We ended the second quarter of fiscal 2011 with cash and cash equivalents were $6.8 million, an increase of $2.5 million from $4.3 million at the end of the prior quarter.

Highlights:

• 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.

Overland Storage - SnapSan S1000, iSCSI, Fibre Channel or SAS Connectivity

Overland Storage expanded its iSCSI storage area network (SAN) portfolio for small- to medium-sized businesses (SMBs) today with the SnapSAN S1000 array, a 2U 12-drive modular array that can scale from 1.2 TB to 120 TB with disk expansions. The SnapSAN S1000 is smaller than the SnapSAN 2000 that Overland brought out in February, but the new system includes a dual controller option for high availability.

The SnapSAN 1000's dual controllers support active-active failover and the devices have redundant, hot-swappable components. It also has supports 10 Gigabit Etherent (10 GbE) iSCSI and either SAS, SATA or Fibre Channel drives, according to Overland solutions marketing manager Joe Disher. It has snapshot capability and automatic disk spin down. The SnapSAN 1000 supports software replication, and Disher said Overland plans array-based replication down the road.

"We are working on getting replication for the S1000 array," he said. "It's really a time to market issue. We had many customers that wanted an encapsulated solution. But we are working on (integrated) replication as well."

Like the SnapSAN 2000, the SnapSAN 1000 is based on the Snap OS Overland acquired when it purchased the Snap Server NAS platform from Adaptec Inc. in 2008. The Snap storage platform is a key piece of Overland's strategy to branch out from its legacy tape business. Last week, Overland acquired the assets of clustered file system startup Maxiscale to build a Snap scale-out NAS system.

"The fact that the new product has dual controllers opens up the addressable market base," said Terri McClure, senior analyst for the Enterprise Strategy Group. "It has the same size chassis as the SnapSAN S2000 but it has two controllers. This is a nice fit for small- to medium-sized businesses that wants high availability on one site."

Overland claims the array can perform at 900 MBps and 200,000 IOPS with a Gigabit Ethernet interface, and 1,300 MBps and 220,000 IOPS at 10GbE.

Pricing for the SnapSAN S1000 starts at $6,895 for a 4 TB iSCSI array. The SnapDisk E1000 expansion unit is available at a starting price of $4,195 without drive