NEW YORK, NY -- (Marketwire) -- 02/14/13 -- The need for data storage is rising, creating a significant demand for products and services offered by companies such as Quantum Corp. (NYSE: QTM) and OCZ Technology Group Inc. (NASDAQ: OCZ). One of the major trends in data storage has been increasing adoption of the cloud. While some see the cloud as a threat to traditional storage solutions, Seagate Technology believes that rising rates of cloud adoption will boost demand for hard drives and solid state drives that comprise cloud storage.
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Global cloud spending is expected to grow at a robust pace over the next few years. According to a report from Seagate Market Research and IDC, cloud is expected to represent 39% of total enterprise drive capacity by 2013. This augurs well for Quantum, which offers solutions for storing and protecting information in physical, virtual, cloud and big data environments.
Last month, Quantum reported strong financial results for its third quarter of fiscal 2013. For the quarter ended December 31, 2013, the San Jose, California-based company reported revenue of $159 million. On a GAAP basis, the company reported a net loss of $8 million, or $0.04 per share for the quarter. On a non-GAAP basis, the company reported net income of $5 million, or $0.02 per share.
Jon Gacek, President and CEO of Quantum, noted that the company improved its financial performance in the December quarter, growing revenue sequentially, driving better-than-expected non-GAAP profits and generating cash. Gacek noted that the company also had another quarter of record DXi deduplication sales, which contributed to a 14% year-over-year increase in the combined DXi and StorNext® revenue the company achieved over the first three quarters of the fiscal year.
For the fourth quarter of fiscal 2013, which ends in March, Quantum forecasts revenue of $145 million to $150 million. GAAP gross margin for the quarter is expected to be 41%, while non-GAAP gross margin is expected to be 42%.
Back in January, OCZ Technology provided an update on a range of issues. The company said that it is working with independent auditor Crowe Horwath LLP regarding restatements of the results for the first quarter of fiscal 2013.
Ralph Schmitt, CEO of OCZ Technology, said that the independent investigation has been completed and the findings have been highly consistent with OCZ's internally identified issues. Schmitt said that the company has already eliminated certain customer incentive programs and made people and process changes to improve overall business operations.
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