Quantum's DLT & Storage Systems Group
expects revenue for the fourth fiscal quarter to decline about 20% sequentially, as the slowdown in information technology spending has been more dramatic than the company originally forecast.
For the quarter ending March 31, the company projected earnings of 20 cents to 22 cents a share. At the beginning of the period, the company expected revenue to fall compared with the latest third quarter, but the tech slowdown has been even more severe than earlier expectations.
First Call/Thomson Financial
, analysts expect the company to earn 24 cents in the fourth quarter, down from a profit of 29 cents a share in the year-ago period. The company had revenue of about $369 million in the third quarter, and a 20% decline would imply a top line of about $295 million for the fourth quarter.
The company said it will continue investing in its storage businesses, which are still expected to see revenue growth of about 30% on a year-over-year basis for the current fiscal year.