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Quantum Corporation (NASDAQ:QMCO), a leader in computer storage devices currently valued at $72.4 million in market capitalization, has announced the appointment of Lewis (JO:LEWJ) W. Moorehead as Chief Financial Officer and Principal Financial (NASDAQ:PFG) Officer, effective Friday. According to InvestingPro data, Moorehead joins at a challenging time, with the company’s financial health score rated as weak and revenue declining by 18.2% over the last twelve months. Moorehead succeeds Kenneth P. Gianella, who transitions out of his roles as Chief Operating Officer and CFO as of today, remaining in an advisory capacity until the annual SEC filing.
Moorehead, 52, has been with Quantum since June 2023 as Vice President of Finance and Treasurer, and previously served as the Chief Accounting Officer. His extensive experience includes roles at Carvana Co. (NYSE: NYSE:CVNA), Quassey investment firm, and Limelight Networks (OTC:EGIOQ), Inc. (now Edgio, Inc.). The appointment comes as InvestingPro analysis shows the company faces significant challenges, with two analysts recently revising earnings downward and the company operating with substantial debt obligations.
Concurrently, Quantum reported the resignation of board member Todd W. Arden, effective yesterday, without disagreements on company operations. Filling the vacancy, John A. Fichthorn, 52, founder and Managing Partner of Dialectic Capital Management, was appointed to the board, effective today. Fichthorn, with a history of board service including Quantum from April 2019 to July 2021, brings financial expertise and shareholder perspective to his role.
In related news, on March 28, Quantum entered into a letter agreement with Gianella, outlining severance benefits in case of a qualifying transaction and subsequent involuntary termination within 90 days. Gianella is entitled to a year’s base salary, unpaid retention bonuses totaling $310,854, stock vesting, and 12 months of COBRA health coverage.
Additionally, on April 2, entities affiliated with Blue Torch Finance, LLC assigned approximately $51.3 million in loans under the Term Loan Credit Agreement to Dialectic Technology SPV LLC. Fichthorn manages Dialectic Capital Management, advisor to Dialectic Technology SPV.
Quantum’s executive and board reshuffling, including the indemnification agreements for the new appointments, reflect strategic moves as the company navigates the evolving tech landscape. These announcements are based on a press release statement.
In other recent news, Quantum Computing Inc. reported its fourth quarter 2024 financial results, which fell short of analyst expectations. The company posted revenue of $62,000, significantly below the consensus estimate of $400,000. Additionally, the adjusted earnings per share came in at -$0.47, missing projections of -$0.08. Despite the revenue miss, Quantum Computing Inc. saw an improvement in its gross margin, increasing to 55% from 13% in the same quarter last year. The company attributed this improvement to lower costs of goods sold. Quantum Computing Inc. reported a net loss of $51.2 million for the quarter, a substantial increase from a $6.8 million loss in the previous year, largely due to non-cash charges. Meanwhile, Quantum Corporation announced a reshuffling in its leadership, with Lewis Moorehead appointed as the new Chief Financial Officer and John Fichthorn rejoining the Board of Directors. Additionally, board member Christopher D. Neumeyer resigned from Quantum Corporation, though the company noted there were no disagreements leading to his departure. These developments highlight ongoing strategic and financial adjustments within both companies.
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