Jonathan W. Gacek
Thanks, Shawn. Welcome to our fiscal 2013 Q1 Earnings Call. Today we reported revenue of $140.9 million and non-GAAP loss per share of $0.04. These amounts are consistent with the announcement of our preliminary results on July 9. Clearly, this is a very disappointing result on both fronts. Although the revenue shortfall was the primary cause of the $0.04 loss. Today, I'm going to address the major factors contributing to our Q1 results and then Linda will provide additional details. I will come back to address our plans for Q2 and the rest of fiscal '13.
Our revenue shortfall was primarily caused by 4 things: first, $6 million or nearly half of the shortfall was due to lower-than-expected results in Europe across all product lines; second, we didn't close forecasted big deals with the non-European portion accounting for another $4 million of the shortfall again across all product lines; third, entry-level OEM revenue was $2 million lower than expected due to a decision by one OEM customer to reduce inventory; and four, we had a one-time change in the basis on which tape royalties are reported and paid by one of the tape media manufacturers which had a $1 million impact on the quarter.
Now, let me say a bit more about each of these 4 factors. In Europe, the $6 million shortfall was due to difficulty closing deals in the last 2 weeks of the quarter. This was across all segments and all products. We believe this is a combination of the economic environment, budget uncertainty and our go-to-market model which relies on a help from channel partners to close deals with end users. We fully recognize that Europe is a difficult market right now and we are increasing our inspection of European deals and driving for more senior end-user contact, especially in larger deals.
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