What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-06-28 compared with 2023-06-06 · 48 added, 53 removed, 153 unchanged (40% of the section changed)

Quantum delivers end-to-end solutions to analyze and enrich, store and manage, and protect and preserve unstructured data across its entire lifecycle.

We specialize in solutions for video data, images, and other large files because this “unstructured” data represents more than 80% of all data being created, according to leading industry analyst firms.

This unstructured data has driven a fundamental shift in the nature of data and the role data plays in every industry.

It is exponentially larger than traditional corporate data, contains immense value, and must be captured, protected, and stored for many years, decades, and longer.

It is no longer just about storing data— organizations need to extract value from their data.

Quantum delivers end-to-end data management solutions designed for unstructured data in the artificial intelligence ("AI") era.

From high-performance ingest that powers AI applications and demanding data-intensive workloads to massive, durable data lakes to fuel AI models, Quantum delivers one of the most comprehensive and cost-efficient solutions for the entire data lifecycle.

We specialize in solutions for video, images, audio, and other large files because this unstructured data represents more than 80% of all data being created according to leading industry analyst firms.

Unstructured data poses both immense potential and significant challenges for organizations looking to retain and analyze their data for AI and other initiatives.

Effectively managing and leveraging this data with an intelligent data management platform is not just an option but a necessity for businesses aiming to uncover hidden insights and create value.

Unstructured data is exponentially larger than traditional corporate data, contains tremendous value, and must be captured, protected, and stored for many years, decades, and longer.

It is no longer just about storing data— organizations need to extract value from their unique data to gain a competitive advantage.

Locked inside video, imagery, security camera footage, scientific data sets, and other sensor-derived data is a wealth of information for informed decision-making.

As a result, organizations need end-to-end solutions that allow them to manage and preserve data for decades and to easily extract insights from the detail.

Whether data lives in the workplace, at the edge, or in the cloud, we provide organizations with the technology, software, and services they need to store, manage, protect, and enrich data throughout its lifecycle.

Products and Services

Our portfolio of products includes primary storage software and systems, secondary storage software and systems, as well as devices and media.

Primary Storage Software and Systems include:

• Myriad All-Flash File and Object Storage Software:

Highly Performant Primary Storage Software and Systems include:

• Myriad All-Flash Software-Defined Storage:

All-flash scale-out file and object storage for high performance enterprise unstructured data applications such as AI, machine learning, and data analytics.

3 unchanged sentences

Unified compute and storage for video surveillance recording, storage, and analytics.

• CatDV Asset Management Software :

For indexing, cataloging, enriching video, audio, and image files, and workflow orchestration.

Secondary Storage Software and Systems include:

Highly Efficient Cost-per-Terabyte Secondary Storage Software and Systems include:

• ActiveScale Object Storage Software:

Extremely scalable and durable storage for long term data preservation and protection.

Extremely scalable and durable storage for building massive data lakes, storage clouds, and cold archives.

• DXi Backup Appliances :

3 unchanged sentences

Scalar tape storage systems are used by the world’s largest hyperscalers as well as thousands of enterprises worldwide.

Devices and Media includes the sale of standalone Linear Tape-Open (“LTO®”) tape drives for small business data protection and archiving, and LTO® media for use in tape storage systems.

CatDV Asset Management Software :

For indexing, cataloging, AI data enrichment, and workflow orchestration, making data easily searchable and accessible so it can contribute to business insights .

Devices and Media includes the sale of standalone linear-tape open tape drives for small business data protection and archiving, and linear-tape open media for use in tape storage systems.

We also offer a broad portfolio of services including 24x7x365 global support, deployment and consulting services, education services, and Quantum-as-a-Service.

33 unchanged sentences

In addition, we sell to OEMs, distributors, VARs and DMRs to reach end user customers.

Sales to our top five customers represented 32%, 17%, and 16% of revenue in fiscal 2023, fiscal 2022 and fiscal 2021, respectively, of which one of our hyperscale customers represented 10% or more of our total 2023 revenue.

Sales to our top five customers represented 26%, 32% and 17% of revenue in fiscal 2024, fiscal 2023 and fiscal 2022, respectively, of which none of our hyperscale customers represented 10% or more of our total 2024 revenue.

The markets in which we participate are highly competitive, characterized by rapid technological change and changing customer requirements.

5 unchanged sentences

Our primary storage solutions, including object storage systems, primarily face competition from the EMC business unit of Dell Inc.

(“Dell”), International Business Machines Corporation, (“IBM”), NetApp, Inc., (“NetApp”), and other enterprise storage vendors in the markets we serve.

(“Dell”), International Business Machines Corporation, (“IBM”), NetApp, Inc., and other enterprise storage vendors in the markets we serve.

Our secondary storage solutions, primarily tape storage systems, compete in the midrange and enterprise reseller and end user markets with IBM and other tape library vendors.

29 unchanged sentences

We have also sold certain patents, retaining a royalty-free license for these patents.

We are a member of the consortium that develops, patents, and licenses Linear Tape-Open, (or “LTO® tape”) technology to media manufacturing companies.

We receive royalty payments for LTO media technology sold under licensing agreements.

We are a member of the consortium that develops, patents, and licenses linear-tape open, technology to media manufacturing companies.

We receive royalty payments for linear-tape open media technology sold under licensing agreements.

We have also entered into various licensing agreements with respect to our technology, patents and similar intellectual property which provide licensing revenues in certain cases and may expand the market for products and solutions using these technologies.

6 unchanged sentences

Risk Factors.

As is typical in our industry, we generally have the greatest demand for our products and services in the fourth quarter of each calendar year, or our fiscal third quarter.

We generally have the greatest demand for our products and services in the fourth quarter of each calendar year, or our fiscal third quarter.

We usually experience the lowest demand for our products and services in the first and second quarters of each calendar year, or our fiscal fourth quarter and fiscal first quarter, respectively.

Information About Our Executive Officers

Following are the names and positions of our management team as of May 18, 2023, including a brief account of the business experience of each.

Following are the names and positions of our management team as of June 12, 2024, including a brief account of the business experience of each.

Name Position with Quantum

Lerner President, Chief Executive Officer and Chairman of the Board

Kenneth Gianella Chief Financial Officer

Cabrera Chief Administrative Officer

John Hurley Chief Revenue Officer

Lewis Moorehead Chief Accounting Officer

Gianella Chief Financial Officer

Cabrera Chief Administrative Officer and Chief Legal and Compliance Officer

Henk Jan Spanjaard Chief Revenue Officer

Laura Nash Chief Accounting Officer

Lerner, 54, was appointed as President and Chief Executive Officer of the Company, effective July 1, 2018, and was appointed Chairman of the Company’s Board of Directors (the “Board of Directors”) on August 7, 2018.

5 unchanged sentences

Lerner served in various executive roles at Cisco Systems, Inc.

CSCO), a networking hardware and software manufacturing company, including most recently as Senior Vice President and General Manager of the Cloud & Systems Management Technology Group.

CSCO), a networking hardware and software manufacturing company, including most recently as Senior

Vice President and General Manager of the Cloud & Systems Management Technology Group.

Before beginning his career as a technology company executive, Mr.

3 unchanged sentences

Lerner earned a Bachelor of Arts in Quantitative Economics and Decision Sciences from U.C.

Kenneth Gianella, 50, has served as our Chief Financial Officer since January 2023.

Gianella, 51, has served as our Chief Financial Officer since January 2023.

Prior to joining us, he served as the Vice President of Investor Relations;

1 unchanged sentence

and Environmental, Social & Governance (ESG) Strategy at Itron, Inc.

ITRI), an energy and water network technology and services company, since July 2018, and as Vice President of Finance and Treasury of Itron’s Networks segment from January 2018 to July 2018.

ITRI), an energy and water network technology and services company, since July 2018 to January 2023, and as Vice President of Finance and Treasury of Itron’s Networks segment from January 2018 to July 2018.

Prior to that, from December 2012 to December 2017, Mr.

2 unchanged sentences

Gianella holds a Master of Business Administration from University of Pittsburgh and a Bachelor of Science in Business Administration from Duquesne University.

Cabrera, 58, most recently served as the Assistant United States Attorney from October 2018 to April 2020 and as Special Assistant United States Attorney from October 2017 to October 2018 in the Office of the United States Attorney, Northern District of California.

Cabrera, 59, was appointed Chief Legal and Compliance Officer in September 2021 and Chief Administrative Officer in August 2022.

Prior to that, he served as the Assistant United States Attorney from October 2018 to April 2020 and as Special Assistant United States Attorney from October 2017 to October 2018 in the Office of the United States Attorney, Northern District of California.

From May 2014 to June 2017, Mr.

9 unchanged sentences

Cabrera holds Bachelor’s and Master’s degrees and a Juris Doctorate from the University of Southern California.

John Hurley, 57, has served as Quantum's Chief Revenue Officer since August 2021.

Prior to Quantum, Mr.

Hurley was at Cisco Systems, Inc.

CSCO), a networking hardware and software manufacturing company, from 2008 to 2021, and most recently served as Vice President at Cisco, global commercial segment.

Hurley also spent several years overseeing Cisco's service provider business.

Additionally, Mr.

Hurley led transformational enterprise relationships with Cisco's largest enterprise customers in aerospace and automotive.

From 2005 to 2008, he served as area Vice President, Midwest Global / Corporate Business Group at Dell Technologies Inc.

DELL), a multinational technology company, where he led regional sales directors and their teams to support multiple Fortune 100 customers.

Hurley held leadership roles at transformational early-stage software companies, where he helped drive the businesses to successful acquisitions by industry leaders Microsoft Corporation and HP Inc.

Hurley holds a Bachelor of Science in Economics from Pennsylvania State University.

Lewis Moorehead, 51, has served as our Chief Accounting Officer since October 2018.

Prior to joining Quantum, Mr.

Moorehead was the Director of Finance, Accounting and Tax at Carvana, Co.

CVNA), a publicly traded on-line retailer, from November 2016 to October 2018.

Beginning in September 2004, he has served as Managing Partner at Quassey, an investment firm.

While at Quassey, he also served as Vice President of Finance and Principal Accounting Officer at Limelight Networks, Inc.

(now Edgio, Inc.), a Nasdaq-listed global content delivery network and SaaS provider, from March 2010 to August 2013.

He has also held finance and accounting positions at eTelecare Global Solutions, an outsourcing service company, Rivers and Moorehead PLLC, an accounting advisory firm, Intelligentias, Inc., a data intelligence company, American Express Company (NYSE:

AXP), a payment card services company, and PricewaterhouseCoopers LLP, an advisory and tax services firm.

He holds a Bachelor of Business Administration, in Accounting from the University of Wisconsin-Whitewater.

Henk Jan Spanjaard, 58, was appointed Chief Revenue Officer in November 2023.

Prior to that, he served as Vice President, EMEA Sales , from July 2020 to November 2023.

From August 2018 to July 2020, he served as Vice President and General Manager, EMEA & India , of DriveScale, Inc., a software development company.

Prior to that, he served as Vice President, EMEA , of A10 Networks, Inc.

ATEN), an application security company, from January 2015 to July 2018.

Prior to his role at A10 Networks, Inc., he held several technology sales leadership roles, including at Infoblox, Inc., an IT automation and security company, and NetApp, Inc.

NTAP), intelligent data infrastructure company.

Spanjaard holds a degree from M.T.S Technical College (Electronics), from Ede, The Netherlands.

Laura Nash, 44, has served as Chief Accounting Officer of the Company since June 2023.

Prior to her appointment as Chief Accounting Officer, Ms.

Nash served as Controller from June 2019 to June 2023.

Prior to that, from September 2005 to June 2019, Ms.

Nash held various positions in Audit and Financial Accounting Advisory Services at Ernst & Young, an accounting firm, in both the U.S.

Nash holds a Bachelor of Laws from University of Aberdeen and a Certificate in Accounting from University of Washington – Michael G.

Foster School of Business.

She is a member of the Institute of Chartered Accountants of Scotland.

Human Capital

Our Chief Administrative Officer ("CAO") leads our human capital initiatives, which include the design and execution of all people strategies.

The CAO partners directly with the Board of Directors, the Leadership and Compensation Committee, and Senior Management on the design, cost, and effectiveness of our people programs to ensure they are competitive and reward our teams for driving company performance.

Our Chief Administrative Officer leads our human capital initiatives, which include the design and execution of all people strategies.

The Chief Administrative Officer partners directly with the Board of Directors, the Leadership and Compensation Committee, and Senior Management on the design, cost, and effectiveness of our people programs to ensure they are competitive and reward our teams for driving company performance.

Our workforce is currently distributed across 19 countries, with approximately 770 employees globally as of March 31, 2024, including 390 in North America, 200 in APAC, and 180 in EMEA.

20 unchanged sentences

The contents of our website are not incorporated into this Annual Report on Form 10-K.

The public may read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, D.C.

The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330 or (202) 551-5450.

The SEC maintains an internet site that contains reports, proxy, and information statements and other information regarding issuers that file electronically with the SEC at http://www.sec.gov.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business