Quantum Announces Delayed Form 10-Q Filing for Quarter Ending December 31, 2023

Quantum Corporation (NASDAQ: QMCO) (“Quantum or the “Company”) announced today that it has filed a Form 12b-25 Notification of Late Filing for the quarter ended December 31, 2023 (the “Form 10-Q”) by February 9, 2024, the original due date for such filing.

As previously disclosed, the Company is in the process of re-evaluating its application of Standalone Selling Price as part of Accounting Standards Codification (ASC) Topic 606 that has resulted in the delayed filing of both its second fiscal quarter and third fiscal quarter results. The Company is targeting to finish its initial assessment, determination of materiality, and completion of the re-evaluation no later than March 31, 2024.

As a result of the delayed filing of its Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2023, the Company also announced it has received a notice (the "Notice") from the Listing Qualifications staff of the Nasdaq Stock Market LLC ("Nasdaq") on February 13, 2024 stating that Quantum is not in compliance with Nasdaq Listing Rule 5250(c)(1). Nasdaq previously granted Quantum an extension to regain compliance with the filing of its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023 by May 7, 2024, to satisfy Nasdaq listing rules. The Company remains committed in its efforts to regain compliance within the timelines specified.

Quantum is providing its cash and long-term debt balances as of December 31, 2023, which are unaudited below.

Liquidity and Debt

• Cash and cash equivalents were $24.4 million, compared to $26.0 million as of December 31, 2022.
• Outstanding term loan debt was $87.3 million, compared to $75.9 million as of December 31, 2022. Outstanding borrowings under the revolving credit facility was $32.0 million, compared to $27.7 million as of December 31, 2022.
• Total interest expense for the three-month period ended December 31, 2023 was $3.9 million, compared to $2.7 million for the same period a year ago.

About Quantum

Quantum technology, software, and services provide the solutions that today's organizations need to make video and other unstructured data smarter – so their data works for them and not the other way around. With over 40 years of innovation, Quantum's end-to-end platform is uniquely equipped to orchestrate, protect, and enrich data across its lifecycle, providing enhanced intelligence and actionable insights. Leading organizations in cloud services, entertainment, government, research, education, transportation, and enterprise IT trust Quantum to bring their data to life, because data makes life better, safer, and smarter. Quantum is listed on Nasdaq (QMCO). For more information visit www.quantum.com.

Quantum and the Quantum logo are registered trademarks of Quantum Corporation and its affiliates in the United States and/or other countries. All other trademarks are the property of their respective owners.

Forward-Looking Information

The information provided in this press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (Exchange Act). These forward-looking statements are largely based on our current expectations and projections about future events affecting our business. Such forward-looking statements include, in particular, statements related to the ongoing re-evaluation of certain accounting matters, including the timing and results of such re-evaluation; consequences and/or effects of the re-evaluation; timing of completion of the re-evaluation, the announcement of the Company’s fiscal 2024 second and third quarter financial results and filing of the Quarterly Reports on Form 10-Q for the fiscal quarters ended September 30, 2023 and December 31, 2023; and the Company’s plans, objectives and intentions that are not historical facts generally.

These forward-looking statements may be identified by the use of terms and phrases such as “anticipates”, “believes”, “can”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “plans”, “projects”, “targets”, “will”, and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters and other statements regarding matters that are not historical are forward-looking statements. Investors are cautioned that these forward-looking statements relate to future events or our future performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements.

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: the outcome of the pending re-evaluation of accounting matters and the possibility of adjustments, including material adjustments, to the Company’s financial statements as the re-evaluation progresses; the discovery of additional and unanticipated information during the re-evaluation process; risks related to the timely completion of the re-evaluation and filing of the Quarterly Reports on Form 10-Q for the fiscal quarters ended September 30, 2023 and December 31, 2023; the ability to meet stock exchange continued listing standards; the possibility that the Nasdaq may delist the Company's securities; risks related to the Company's ability to implement and maintain effective internal control over financial reporting in the future; the impact of these factors on the Company's performance and outlook; and the application of accounting or tax principles in an unanticipated manner. See also other risks that are described in “Risk Factors” in the Company’s filings with the Securities and Exchange Commission (the SEC), including its Annual Report on Form 10-K filed with the SEC for the fiscal year ended March 31, 2023, and any subsequent reports filed with the SEC. The Company does not intend to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law or regulation.

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