Overland Storage, Inc. - results for its fiscal 2009 second
Net revenue for the fiscal 2009
second quarter was $28.9 million, compared with $34.1 million for the same
quarter a year ago. The company reported a net loss of $5.2 million, or $0.40
per share, for the fiscal 2009 second quarter compared with a net loss of $6.5
million, or $0.51 per share, for the same quarter in the prior fiscal year.
For the first six months of fiscal
2009, the company reported net revenue of $61.3 million compared with $67.0
million for the same period in the prior fiscal year. The net loss for the
first half of fiscal 2009 was $12.1 million, or $0.94 per share, compared with a
net loss of $11.0 million, or $0.86 per share, in the first half of fiscal 2008.
The company noted that net revenue
for the fiscal 2009 second quarter decreased 15.2 percent from the fiscal 2008
second quarter primarily due to lower sales to the company's largest OEM
customer. Total OEM revenue was down 37.1 percent compared to the fiscal 2008
second quarter. This trend continues to reflect the previously announced
transition by the customer to a new product from an alternate supplier. Total
branded revenue declined only 1.7 percent compared to branded revenue in the
second quarter of fiscal 2008. Sales in the Americas region was relatively flat
compared to the prior year quarter, while a 15.1 percent decline in EMEA and a
40.2 percent decline in APAC were offset by a 24.4 percent increase in revenue
of service and spares.
Gross profit in the fiscal 2009
second quarter of $7.7 million nearly equaled the $7.8 million in gross profit
reported in the prior year quarter, despite the 15.2 percent net revenue decline
noted above. The gross profit margin of 26.7 percent for the fiscal 2009 second
quarter improved over the fiscal 2008 second quarter margin of 22.8 percent.
“Though conscious of the
challenging worldwide economy, we believe that our new business plan
substantially modifies the prospects for Overland's longevity and prosperity,”
concluded Kelly. "e;We now turn to the job of execution. Knowing the experience
and dedication of the Overland team, we believe that we are up to the task, and
are highly confident of our success.”