Quantum can’t file its fourth quarter and full fiscal 2025 results because of accounting problems similar to those it experienced 18 months ago.
The company provides StorNext data management software, ActiveScale object storage, CatDV media asset management software, DXi deduplicating backup targets, Scalar tape libraries, network video recorders, a unified surveillance platform, and the Myriad all-flash object and file storage software.
A Quantum 12b-25 SEC filing states “it is unable to file its Annual Report on Form 10-K … for the fiscal year ended March 31, 2025 … by June 30, 2025, the original due date for such filing” because it is “reviewing its accounting related to certain revenue contracts as well as the application of standalone selling price under applicable accounting standards.” The issue will not “affect the Company’s financial statements for any fiscal periods prior to Fiscal 2025.”
Quantum’s SEC filing states it expects to submit the delayed report by July 15.
Standalone selling prices here are the calculated prices of component products and associated services in a bundle of products sold as one entity. A supplier can apply discounts or other changes to component product and service selling prices in a bundle.
The company experienced a difficult and prolonged standalone selling price issue in November 2023 when it delayed filing its fiscal 2024 second quarter and then third quarter results and had to recalculate results for fiscal 2022 and 2023. This ultimately led, along with poor business results, to a fall in its Nasdaq stock price below the $1 minimum and a reverse stock split in August 2024 to drive the price back up to $3.85.
Now Quantum’s standalone selling price issue seems to be repeating itself.
Quantum CFO Ken Gianella’s resignation was announced following Dialectic Capital Management’s acquisition of Quantum’s $51 million in outstanding term debt from Blue Torch Capital in April. Gianella was hired by Quantum in August last year, becoming COO as well, and he joined Ouster as CFO in nine months later. Ouster is a provider of high-performance lidar sensors and software for the automotive, industrial, robotics, and smart infrastructure industries. Quantum’s chief accounting officer, Lewis Moorhead, was promoted to CFO to replace Gianella.
CEO, chairman, and president Jamie Lerner resigned in June when he lost the board’s confidence following board changes after the Dialectic Capital Management debt purchase.
Quantum stock is now trading at $9.97.The stock had previously peaked at $70.67 on December 27 last year when a buying bubble saw investors mistakenly believe Quantum Corporation was involved in quantum computing. The price had dropped to $10.23 by March this year as the speculative investors realized their error.
