We expect the inventory burn issue to be a one quarter issue as resellers move forward from a lower base, said CEO Rick Belluzzo.
The San Jose, California storage vendor now expects revenue in its first quarter to June 29 to be $200m to $205m, though in April it predicted it would be flat or slightly down on the $235m recorded in the previous three months.
This will push it deep into the red and, while in April it predicted the loss would remain flat at $0.03, it now predicts the loss to be $0.06 and $0.08.
The main cause of the shortfall will be lower-than-expected media revenue and, to a lesser extent, slower-than-expected sequential growth in tape drive sales after two quarters of significant growth.
Belluzzo said Quantum still expected to see revenue growth over last year in both tape drives and the storage solutions group.
Source: Computerwire
