Quantum Corporation

Greetings. Welcome to Quantum Corporation's first quarter fiscal year 2025 financial results. At this time, all participants are in a listen-only mode. A 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 is being recorded. I will now turn the conference over to Bonnie Colbert, Quantum's Chief Administrative Officer. Thank you. You may begin.

Good afternoon, and thank you for joining today's conference call to discuss Quantum's first quarter fiscal 2025 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 revenues, 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. For more information, please refer to the detailed description 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 today. Earlier today, we announced our results for our first quarter fiscal 2025. Turning to slide three, here are some brief highlights from the quarter. We finished Q1 2025 with $71.3 million in revenue, non-GAAP gross margin of 36.9%, and adjusted EBITDA of negative $3.1 million. These results were largely in line with our expectations, reflecting further rotation of our business toward our long-term initiatives. We continue to take steps to improve the company's capital structure and operational performance, as well as accelerating the growth of profitable revenue streams, which we will discuss further in today's call. First, as part of our ongoing strategic and financial initiatives, We have reached an agreement with our current lenders that significantly increases our liquidity, allows us to take action on improving our operational initiatives, and focus on driving Myriad, ActiveScale, and the rest of our business to the next level. We added access to over $25 million. This injection of growth capital combined with the restructuring of our existing debt allows the company not only to improve its overall capital structure and balance sheet, but positions us well for continued innovation and growth in our target markets. Let me talk more about the company's continued transformation and driving the business to the next level. Quantum has proven experience managing unstructured data with deep roots in video and media and entertainment. The ongoing exponential growth in unstructured data, particularly driven by AI use cases, is creating continued traction for our Myriad and Active Scale platforms that are uniquely positioned to address these workflows end-to-end. Our engineering team is delivering the committed Myriad roadmap on time and on plan. With our customers successfully adopting these new features as they are released, giving us confidence in their robustness for commercial rollout. As I mentioned on the last call, while deal cycles can be long for this category of product, we currently have several proof of concept engagements underway and moving forward. These are concentrated primarily in visual effects and post-production, where we have extensive experience to accelerate adoption, along with life sciences, high performance computing, industrial research, and manufacturing. We have added to this global pipeline during the quarter with additional AI use cases, with one of note being a multi-billion dollar enterprise with the potential for a scaled engagement. Beyond Myriad, we are seeing momentum since deploying all flash options across our full portfolio. In fact, our DXI T10 had multiple closed deals within days of its formal launch announcement. We plan on aggressively targeting the enterprise backup market with our superior technology delivering an all-flash format, DXI immutability, and the 1U form factor at one of the best total cost of ownership in the market. We solved some of the most complex and important data center and storage problems for the world's largest organizations. While we have had headwinds in the near term, we believe our solutions provide unique value that no other company can offer. This motivates us to come to work every day and drive these solutions forward. For example, we saw several notable active scale wins in the quarter, including an NBA team that was an existing Stornex customer with content archival needs leading to the purchase of more than 10 petabytes of active and cold storage. The deal included a net new active-scale deployment with cold storage, CADDV, and Stornex expansion, demonstrating a seven-figure deal size when we sell the full product portfolio end-to-end. In addition to new active scale deployments into existing store next and tape installed based accounts, we saw active scale expansion deals as unstructured data continues to grow exponentially. And we expect these footprints to continue to scale as well as net new customer accounts in both media and entertainment and healthcare. Finally, we remain committed to strong cost and discretionary spending controls through this transformation, while continuing to evaluate and consider all possible alternatives. As we execute on our business initiatives that include achieving our operating performance driven by tangible proof points, accelerating growth of new products, and divesting non-core product and assets, our organization will become more focused and operationally efficient. With that, I would now like to turn it over to Ken to walk through our financial results and our updated financing in more detail. Ken?