Monday, February 27, 2017

Imation Definitively Sold Nexsan

Imation Corp. announced that its transaction with NXSN Acquisition Corp., an affiliate of Spear Point Capital Management LLC, pursuant to which all of the issued and outstanding common stock of Nexsan Corporation was sold to NXSN, has closed.

Imation's Bob Fernander, its interim CEO, and Geoff Barrall, its CTO, will continue to run the Nexsan business as CEO and CTO of Nexsan, respectively, and will have seats on the new Nexsan board.

The transaction is designed to enhance Nexsan's plans for both organic and inorganic growth, as Nexsan will be infused with up to $10 million in fresh private equity capital.

The transaction is a strategic final step in the restructuring plan of Imation, which received 50% of the issued and outstanding common stock of NXSN and a $25 million senior secured convertible promissory note, by providing for third-party investment in the Nexsan business to enhance Nexsan's growth and support its recent product developments.

This investment provides value for Imation stockholders by eliminating Imation's need to make this investment in Nexsan itself while preserving the potential for equity value upside from Nexsan's ongoing development and market penetration.

As a result of the deal, Nexsan plans to make additional investments in sales, marketing and geographic expansion. It is continuing its 100% channel model worldwide, and will increase account coverage, including channel assistance and marketing initiatives in order to drive growth and customer adoption. Over the last year, it has stabilized its revenue and is expected to continue to grow following the closing of the transaction.

Quantum: Preliminary 3FQ17 Results - $133 million revenue expected, above high end of guidance

Quantum Corp. announced preliminary results for the fiscal third quarter 2017, ended December 31, 2016 that were above the high end of the previously provided guidance range for both total revenue and profitability.

The company currently expects:
    •    Total revenue of approximately $133 million, up from $128 million in the fiscal third quarter 2016. For the first three quarters of fiscal 2017, total revenue grew 8% over the same period in fiscal 2016.

    •    Scale-out tiered storage revenue (previously referred to as scale-out storage revenue) of approximately $40 million, an increase of 12% and the 22nd consecutive quarter of year-over-year growth. Revenue was up 26% year ro date over the first nine months of fiscal 2016.

    •    Total data protection revenue of approximately $83 million, up $2 million.

    •    GAAP operating income of approximately $8 million to $9 million and non-GAAP operating income of $9 million to $10 million - an increase of $6 million to $7 million and $2 million to $3 million, respectively.

    •    GAAP net income of approximately $6 million to $7 million, or $0.02 per diluted share, and non-GAAP net income of $7 million to $8 million, or $0.03 per diluted share - an increase of $0.02 per diluted share and $0.01 per diluted share, respectively.

"We're very pleased with our continued strong performance this fiscal year," said Jon Gacek, president and CEO. "For the third straight quarter, we increased total revenue and profit year-over-year, with growth in both scale-out tiered storage and data protection. In addition, comparing the first nine months of fiscal 2017 to the same period a year earlier, we not only grew scale-out tiered storage 26% but also increased branded data protection revenue 7% and improved our GAAP and non-GAAP bottom-line results by approximately $28 million and $23 million, respectively. We ended the quarter with excellent momentum across all product categories, and we start our fiscal fourth quarter with a strong backlog and solid funnel. Therefore, we feel very confident in our ability to deliver year-over-year revenue growth again in the current quarter and exceed our annual revenue and profitability guidance for fiscal 2017."