Overland Storage Reports Q1 Revenue of $10.6MFriday, November 15, 2013
Overland Storage, the San Diego provider of data storage services, reported fiscal 2014 first quarter revenue of $10.6 million, compared with $11.7 million for the like quarter of the prior fiscal year.
Net loss for the quarter was $4.6 million, compared with a net loss of $4.9 million in the like quarter of last year.
Earlier this month, Overland announced the acquisition of Tandberg Data Holdings, a German provider of data storage and protection systems in an all-stock transaction at a price that was not disclosed.
Subject to shareholder and regulatory approvals, the company said the acquisition should close by the end of this year.
Given Tandberg’s approximately $60 million in annual revenue, the deal will create a company with about $110 million in annual sales, Overland said.
“With this acquisition, we would have a larger sales engine and expanded market reach to realize the growth potential of the innovative and award-winning products we have developed over the last couple of years,” said Overland CEO Eric Kelly.
Private equity firm Cyrus Capital LP, the majority owner of Tandberg, is also an investor in Overland. As part of the agreement, Cyrus is converting $10.7 million of notes it owns into shares of common stock at $1.30 per share. Through the arrangement, the firm would be Overland’s majority owner.
Traded on Nasdaq under the ticker OVRL, shares closed Nov. 14 at 90 cents, giving the company a market capitalization of about $28 million. Its 52- week range is 79 cents to $1.42.