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SAN JOSE, Calif. - Quantum Corporation (NASDAQ: QMCO), a data storage solutions provider with a market capitalization of $91.24 million and current trading price of $12.80, has announced the integration of LTO Ultrium format generation 10 full-height tape drives into its Scalar tape library systems, including the Scalar i7 RAPTOR, Scalar i6, and Scalar i6000. This development, expected to begin shipping later this quarter, promises to bolster Quantum’s archival storage solutions, offering high-density, secure, and cost-effective options for data retention.
The new LTO-10 technology provides a significant increase in storage capacity, with each cartridge capable of holding 30 TB of data natively, and up to 75 TB compressed. This leap in density is designed to meet the demands of AI applications, regulatory compliance, and the exponential growth of long-term data retention. According to InvestingPro data, Quantum maintains a gross profit margin of 40.05%, though the company faces challenges with an 18.16% revenue decline in the last twelve months.
Quantum’s Scalar i7 RAPTOR is noted for its market-leading storage density, capable of accommodating up to 60 PB of native LTO-10 data in a single rack. This represents a more than threefold density increase over competing systems, potentially reducing operational costs by 70% due to savings in floor space, power, and cooling requirements.
The company emphasizes the security features of its Scalar platform, including Ransom Block, Tape Blocking, and Active Vault, which provide air-gapped protection against ransomware and other cyber threats. While Quantum’s technology offerings remain robust, InvestingPro analysis reveals several challenges, including significant debt burden and rapid cash burn. For detailed insights into Quantum’s financial health and 12+ additional ProTips, subscribers can access the comprehensive Pro Research Report. The LTO-10 drives also offer multiple interface options, such as 32 Gb Fibre Channel and 12 Gb SAS, and active optical connectivity that extends cable distances up to 100 meters.
Quantum is part of the LTO Consortium, alongside IBM and HPE, which oversees the development and licensing of LTO technology. The introduction of LTO-10 is seen as a significant advancement for organizations dealing with large volumes of data, particularly in sectors that are rich in AI-driven and video content.
The integration of LTO-10 into Quantum’s solutions is designed to enhance the company’s existing data lifecycle management offerings, which include StorNext NAS and SAN file workflows, ActiveScale object storage, and DXi deduplicated backup systems. These integrated solutions are aimed at providing efficient, scalable storage throughout the data lifecycle.
This announcement is based on a press release statement from Quantum Corporation. With a current ratio of 0.37 and total debt of $146.4 million, investors seeking deeper analysis of Quantum’s financial position and growth prospects can access detailed metrics and expert insights through InvestingPro’s comprehensive research platform.
In other recent news, Quantum Corporation has released preliminary financial results for its fiscal fourth quarter, anticipating revenue between $65 million and $67 million, with a gross margin of approximately 44%. The company also projects a GAAP net loss of around $3.5 million. Shareholders have approved the issuance of up to $200 million of common stock under a Standby Equity Purchase Agreement, a move necessary for Nasdaq compliance. Additionally, Quantum has appointed Lewis W. Moorehead as Chief Financial Officer, succeeding Kenneth P. Gianella, who will remain in an advisory role. John A. Fichthorn has rejoined the board, bringing financial expertise, while Chris Neumeyer from PIMCO has resigned from the board but retains observation rights. Dialectic Capital Management has acquired Quantum’s $51 million outstanding term debt from Blue Torch Capital, aligning with strategic financial adjustments. These developments reflect Quantum’s ongoing efforts to enhance financial and operational agility in the AI and data management sectors.
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