Why Quantum Shares Leapt Higher
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Quantum have leapt higher today by as much as 11% after the company reported earnings.
So what: Revenue in the quarter was $159 million, a sequential gain of 8%. Non-GAAP net income was $5 million, or $0.02 per share. Analysts were expecting the company to break even for the quarter, while sales were right on target with forecasts.
Now what: CEO Jon Gacek said that growth in revenue helped boost adjusted profits more than expected, and the company also saw record sales of its DXi deduplication offering, which saw sales jump 19% from a year prior. At the same time, the company has scaled back spending in order to save costs and help the bottom line, even as it invests in new product development. Next quarter should see revenue of $145 million to $150 million.
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The article Why Quantum Shares Leapt Higher originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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