Overland Storage ( OVRL) raised its guidance for fiscal 2007 and 2008 thanks to two new contracts, a software license agreement and a supply pact for the company's new tape automation product that's currently under development.

The outlook sent Overland's shares sharply higher in premarket trading. Lately, the stock was up $2.56, or 31%, to $10.72.

For the fiscal year ending June 30, 2007, Overland, a seller of data-protection software and data-storage products, expects revenue of $280 million to $285 million. Earnings before items should be 35 cents to 40 cents a share. The Thomson First Call consensus estimates are for a loss of 6 cents and revenue of $192.5 million.

The company projected fiscal 2008 revenue of $320 million to $330 million, and a profit of 75 cents to 85 cents a share, excluding any items. When calculated using generally accepted accounting principles, Overland expects to earn 22 cents to 27 cents in fiscal 2007 and 62 cents to 72 cents in fiscal 2008.

Wall Street expectations for fiscal 2008 weren't available through Thomson First Call.

Overland will report earnings for the fiscal second quarter ended Dec. 31, on Jan. 26. The company will update its guidance for the second half of fiscal 2006 at that time.

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