joined the long-list of technology suppliers reporting demand weakness Tuesday, saying first-quarter revenue will be $25 million light.
San Jose, Calif,-based Quantum expects revenue in the three months to June 27 to be $175 million, short of the Thomson First Call consensus of $200 million. The company said earnings will still be in line with previous estimates thanks to stronger-than-expected margins.
Quantum blamed two-thirds of the revenue shortfall on anemic business in the quarter's final two weeks, citing a pair of resellers for whom the company supplies tape drives and automation systems. It said weakness was spread across its major product lines in tape drive and storage systems, with a slightly worse situation in the former.
Also hurting revenue were media sales weighted more toward royalty contracts than branded sales and a slower-than-expected introduction of a new tape drive system.
The stock closed Tuesday at $2.67.