Quantum Corporation

Fiscal Full Year 2024 Financial Results and Business Update Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference call is being recorded for replay purposes. I will now turn the conference over to Brian Cabrera, Quantum's Chief Administrative Officer. Thank you.

Good afternoon, and thank you for joining today's conference call to discuss Quantum's fiscal 2024 financial results. I'm Brian Cabrera, Quantum's Chief Administrative Officer. Speaking first today is Jamie Lerner, our Chairman and CEO, followed by Ken Gianella, our CFO. We'll then open the call to questions from analysts. Some of our comments during the call today may include forward-looking statements. All statements other than statements of historical fact should be viewed as forward-looking, including any projections of revenue, margins, expenses, adjusted EBITDA, adjusted net income, cash flows, or other financial, operational, or performance topics. These statements involve known and unknown risks and uncertainties we refer to as risk factors. Risk factors may cause our actual results to differ materially from our forecast. The results reported in this earnings call are preliminary and unaudited and are subject to change. As previously disclosed, the company is in the process of restating its previously issued results for its audited consolidated financial statements for the fiscal years ended March 31 2023 and March 31, 2022 contained in its annual reports on Form 10-K. Unaudited interim condensed consolidated financial statements for each of the first three quarters in such years contained in its quarterly reports on Form 10-Q and unaudited interim condensed consolidated financial statements for the fiscal quarter end ended June 30, 2023, contained in its quarterly report on Form 10-Q, the restatement. The company has not yet completed its annual financial close process for the fiscal 2024 fourth quarter and full year. And its independent auditors have not completed their audit of the company's financial statements for the fiscal 2024 full year. In addition, the company is in the process of completing the financial close process for the restatement and its independent auditors have not completed their audit and applicable reviews of the restatement. The financial results in this earnings report do not present all necessary information for all understanding of the company's results of operations for the fiscal 2024 fourth quarter and full year as well as the financial statements that will be included in the restatement. As the company completes its financial close process and finalizes its financial statements for the fiscal 2024 fourth quarter and full year as well as for the restatement, And as its independent auditors complete their audit of the company's financial statements for the fiscal 2024 full year and complete their applicable audit and reviews of the restatement, it is possible the company may identify items that require adjustments to the preliminary financial information set forth in this earnings report. And those changes could be material. The company is in the final stages of confirming the revised financial results to be reflected in the restatement and expects to file its current financial results as well as its restated results in a Super Form 10-K. We do not intend to update such financial information prior to the filing of the Super Form 10-K. For more information, please refer to the detailed descriptions we provide about these and additional risk factors under the risk factors section in our 10Qs and 10K filed with the Securities and Exchange Commission. We do not intend to update or alter our forward-looking statements once they are issued, whether as a result of new information, future events, or otherwise, except, of course, as we are required by applicable law. Please note that our press release and the management statements we make during today's call will include certain financial information in GAAP and non-GAAP measures. We include definitions and reconciliations of GAAP to non-GAAP items in our press release. Now I would like to turn the call over to our Chairman and CEO, Jamie Lerner. Jamie?

Thank you, Brian, and thank you all for joining us. Earlier today, we announced in an earnings release our full year results for fiscal 2024, and we are pleased to be back talking to all of our stakeholders live. We truly appreciate investors' patience and support, acknowledging the extended period during which the company was not able to comment on our ongoing business performance and conditions. The reevaluation was done in conjunction with the top consultants in the industry, and we took a fresh look at everything. including analyzing hundreds of thousands of transactions over the last five years. Before Ken walks through the specific change in methodology and details of the associated adjustments, I would like to acknowledge that while this process was a time-consuming and expensive project to undertake, this should reinforce to our stakeholders that Quantum holds itself to the highest standards to ensure our financial reporting methodologies are correct, compliant, and reflect the company's current and future business outlook. Now, turning to our operational overview and where the team has been focused since our last public conference call in August. We made it a high priority and initiated several actions to improve the company's capital structure and begin paying down debt. This included working closely with our lenders to ensure sufficient liquidity, as well as focusing on improving our working capital to execute on a renewed path to achieve growth and meaningfully improve operating performance. During this time, we've also continued implementing self-help actions to further streamline our business and sales organization, increase operational efficiencies and take costs out of the business. The initial results from these optimization efforts contributed to gross margin expanding 600 basis points year over year and 16 million of total annualized cost savings. Moreover, we have used this time as an opportunity to analyze all aspects of our business and to frame a path forward that will enable us to accelerate future growth from a more stabilized base of legacy business as we scale our new solution offerings with more profitable revenue streams. I will expand further on this repositioning and go-forward strategy in a few minutes. But let me first pass the call to Ken to review the results of our re-evaluation process and reported financials, as well as full-year fiscal 2024 results.