Quantum (QTM) Q1 2012 Earnings Call July 27, 2011 5:00 pm ET Executives Jon Gacek - Chief Executive Officer, President and Chief Operating Officer Linda Breard - Chief Financial Officer, Chief Accounting Officer, Senior Vice President of Finance, IT and Facilities Shawn Hall - Senior Vice President, General Counsel and Secretary Analysts Brian Marshall - Gleacher & Company, Inc. Shebly Seyrafi - FBN Securities, Inc. Brian Freed - Wunderlich Securities Inc. Alex Kurtz - Sterne Agee & Leach Inc. Glenn Hanus - Needham & Company, LLC Chad Bennett - Northland Securities Inc. Eric Martinuzzi - Craig-Hallum Capital Group LLC Presentation Question-and-Answer Session Jon Gacek
Jon GacekI think there's a whole bunch of answers. I mean, I think one of the things that was a positive about Ted is, Ted understands the uniqueness and complexity of the products and the solution set and the customers and the channels that we're selling into. So, I mean, he's very thoughtful about how we go to market, what it takes to be successful. And a lot of the changes we made, he and I were talking about during the recruiting process, if you will. Do I think Ted will -- I already know Ted has implemented some new things around inspection and sales force, and he's making or he's further putting focus on changes that we've made. So I think the biggest thing he's bringing is new perspective as well as focus. I expect him to have ideas of things he wants to do differently. And I also expect him to know that we needed -- we can't have a big disruption, either. And I will expect we'll do some things still. But I don't -- I think the overall changes we made are good, and I think we are seeing the impact of them. We just didn't seize the impact to the tune of $6.5 million, if you want to get really there. I kind of measure it that we expect it to. But we think we will. Chad Bennett - Northland Securities Inc. Okay. Last one for me, on the NetApp partnership OEM agreement on StorNext. Can you give us any -- you alluded to within the call, but any better idea of where you are there in terms of training your sales people jointly doing pitches and so forth and any type of quantification of progress? Jon Gacek Yes. Just a reminder: It's is not an OEM. It's a brand resell, which is important for us. Because when the customer is buying a tightly integrated solution, but it's their disk and our software. We have lots of activity. We have lots of field events. I believe that they've announced their first product. They have a series of products planned. I don't believe they're shipping any, have shipped the product yet, and I think that has to do with what disc platform they're ran on, but I don't know for sure. I think that's a question for them. I expect there will be revenue from them this quarter, though. And I think it's been really well received in the field. And then one of the nice things you mentioned is, because it's a branded play and it's branded for them, too, both our field reps are going to get paid. And that always helps drive alignment in the field.
OperatorOur next question comes from the line of Brian Freed with Wunderlich Securities. Brian Freed - Wunderlich Securities Inc. A couple of quick questions. I guess the first is, when you look at the federal exposure you guys have in the September quarter, you have heard a number of folks in the IT ecosystem talk about softness in federal. Can you discuss kind of your outlook for federal on 2 fronts? One overall, and second, specifically with respect to StorNext, given that has a pretty big exposure there? Read the rest of this transcript for free on seekingalpha.com