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RESTATEMENT (Tables) | 6 Months Ended
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Sep. 30, 2018
Consolidated balance sheets | QUANTUM CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands)
|  | September 30, 2017 |
|  | As Reported |  |  | Restatement Adjustments |  |  | Restatement Reference |  |  | As Restated |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 9,504 |  |  | $ | 4,479 |  |  |  | k |  |  | $ | 13,983 |
Accounts receivable, |  |  | 105,771 |  |  |  | (6,545 | ) |  |  | a |  |  |  | 99,226 |
Manufacturing inventories |  |  | 29,119 |  |  |  | 5,593 |  |  |  | a |  |  |  | 34,712 |
Service part inventories |  |  | 19,915 |  |  |  | — |  |  |  |  |  |  |  | 19,915 |
Other current assets |  |  | 8,795 |  |  |  | 786 |  |  |  | g, q |  |  |  | 9,581 |
Restricted cash |  |  | 1,969 |  |  |  | 1,094 |  |  |  | f |  |  |  | 3,063 |
Total current assets |  |  | 175,073 |  |  |  | 5,407 |  |  |  |  |  |  |  | 180,480 |
Property and equipment, less accumulated depreciation |  |  | 10,745 |  |  |  | (325 | ) |  |  | r |  |  |  | 10,420 |
Restricted cash, long-term |  |  | 20,000 |  |  |  | — |  |  |  |  |  |  |  | 20,000 |
Other long-term assets |  |  | 5,332 |  |  |  | 1,418 |  |  |  | h, m, p, r |  |  |  | 6,750 |
Total assets |  | $ | 211,150 |  |  | $ | 6,500 |  |  |  |  |  |  | $ | 217,650 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 48,488 |  |  |  | — |  |  |  |  |  |  | $ | 48,488 |
Accrued warranty |  |  | 2,950 |  |  |  | (2,950 | ) |  |  | l |  |  |  | — |
Deferred revenue, current |  |  | 77,090 |  |  |  | 11,415 |  |  |  | a, b |  |  |  | 88,505 |
Accrued restructuring charges, current |  |  | 1,743 |  |  |  | 627 |  |  |  | i |  |  |  | 2,370 |
Convertible subordinated debt, current |  |  | 57,034 |  |  |  | — |  |  |  |  |  |  |  | 57,034 |
Accrued compensation |  |  | 23,180 |  |  |  | (925 | ) |  |  | e, f |  |  |  | 22,255 |
Other accrued liabilities |  |  | 12,927 |  |  |  | 3,634 |  |  |  | a, d, l, n, q, r |  |  |  | 16,561 |
Total current liabilities |  |  | 223,412 |  |  |  | 11,801 |  |  |  |  |  |  |  | 235,213 |
Deferred revenue, long-term |  |  | 35,906 |  |  |  | 868 |  |  |  | b |  |  |  | 36,774 |
Accrued restructuring charges, long-term |  |  | 423 |  |  |  | 3,192 |  |  |  | i |  |  |  | 3,615 |
Long-term debt, net of current portion |  |  | 70,631 |  |  |  | 5,860 |  |  |  | h, m |  |  |  | 76,491 |
Other long-term liabilities |  |  | 5,112 |  |  |  | 5,924 |  |  |  | n, p, q |  |  |  | 11,036 |
Total liabilities |  |  | 335,484 |  |  |  | 27,645 |  |  |  |  |  |  |  | 363,129 |
Commitment and contingencies (Note 12) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stockholders’ deficit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |
Common stock |  |  | 347 |  |  |  | — |  |  |  |  |  |  |  | 347 |
Additional paid-in capital |  |  | 476,409 |  |  |  | (316 | ) |  |  | j |  |  |  | 476,093 |
Accumulated deficit |  |  | (604,832 | ) |  |  | (16,197 | ) |  |  | a, b, d, e, m, o, p, q, r |  |  |  | (621,029 | )
Accumulated other comprehensive income (loss) |  |  | 3,742 |  |  |  | (4,632 | ) |  |  | n, r |  |  |  | (890 | )
Total stockholders’ deficit |  |  | (124,334 | ) |  |  | (21,145 | ) |  |  |  |  |  |  | (145,479 | )
Total liabilities and stockholders’ deficit |  | $ | 211,150 |  |  | $ | 6,500 |  |  |  |  |  |  | $ | 217,650 |
Consolidated statements of operations |
|  | Six Months Ended September 30, 2017 |
|  | As Reported |  |  | Restatement Adjustments |  |  | Restatement References |  |  | As Restated |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product revenue |  | $ | 135,224 |  |  | $ | 1,855 |  |  |  | a, c |  |  | $ | 137,079 |
Service revenue |  |  | 69,410 |  |  |  | 617 |  |  |  | b |  |  |  | 70,027 |
Royalty revenue |  |  | 19,275 |  |  |  | — |  |  |  |  |  |  |  | 19,275 |
Total revenue |  |  | 223,909 |  |  |  | 2,472 |  |  |  |  |  |  |  | 226,381 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product cost of revenue |  |  | 99,510 |  |  |  | 2,772 |  |  |  | a |  |  |  | 102,282 |
Service cost of revenue |  |  | 29,807 |  |  |  | 135 |  |  |  | d |  |  |  | 29,942 |
Total cost of revenue |  |  | 129,317 |  |  |  | 2,907 |  |  |  |  |  |  |  | 132,224 |
Gross profit |  |  | 94,592 |  |  |  | (435 | ) |  |  |  |  |  |  | 94,157 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Research and development |  |  | 20,795 |  |  |  | — |  |  |  |  |  |  |  | 20,795 |
Sales and marketing |  |  | 54,003 |  |  |  | (1,101 | ) |  |  | c, e |  |  |  | 52,902 |
General and administrative |  |  | 24,667 |  |  |  | (737 | ) |  |  | j, r |  |  |  | 23,930 |
Restructuring charges |  |  | 2,366 |  |  |  | (665 | ) |  |  | i |  |  |  | 1,701 |
Total operating expenses |  |  | 101,831 |  |  |  | (2,503 | ) |  |  |  |  |  |  | 99,328 |
Loss from operations |  |  | (7,239 | ) |  |  | 2,068 |  |  |  |  |  |  |  | (5,171 | )
Other expenses and losses, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | 5,175 |  |  |  | 42 |  |  |  | r |  |  |  | 5,217 |
Loss on debt extinguishment |  |  | 39 |  |  |  | — |  |  |  |  |  |  |  | 39 |
Other income, net |  |  | (175 | ) |  |  | — |  |  |  |  |  |  |  | (175 | )
Loss before income taxes |  |  | (12,278 | ) |  |  | 2,026 |  |  |  |  |  |  |  | (10,252 | )
Income tax benefit |  |  | (741 | ) |  |  | (293 | ) |  |  | m, o, p, q |  |  |  | (1,034 | )
Net loss |  | $ | (11,537 | ) |  | $ | 2,319 |  |  |  |  |  |  | $ | (9,218 | )
Net loss per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (0.34 | ) |  |  |  |  |  |  |  |  |  | $ | (0.27 | )
Diluted |  | $ | (0.34 | ) |  |  |  |  |  |  |  |  |  | $ | (0.27 | )
Weighted average common shares outstanding - basic |  |  | 34,337 |  |  |  |  |  |  |  |  |  |  |  | 34,338 |
Weighted average common shares outstanding - diluted |  |  | 34,337 |  |  |  |  |  |  |  |  |  |  |  | 34,338 |
|  | Three Months Ended September 30, 2017 |
|  | As Reported |  |  | Restatement Adjustments |  |  | Restatement References |  |  | As Restated |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product revenue |  | $ | 63,606 |  |  | $ | 3,990 |  |  |  | a, c |  |  | $ | 67,596 |
Service revenue |  |  | 34,165 |  |  |  | 745 |  |  |  | b |  |  |  | 34,910 |
Royalty revenue |  |  | 9,280 |  |  |  | — |  |  |  |  |  |  |  | 9,280 |
Total revenue |  |  | 107,051 |  |  |  | 4,735 |  |  |  |  |  |  |  | 111,786 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product cost of revenue |  |  | 48,561 |  |  |  | 3,041 |  |  |  | a |  |  |  | 51,602 |
Service cost of revenue |  |  | 14,717 |  |  |  | 148 |  |  |  | d |  |  |  | 14,865 |
Total cost of revenue |  |  | 63,278 |  |  |  | 3,189 |  |  |  |  |  |  |  | 66,467 |
Gross profit |  |  | 43,773 |  |  |  | 1,546 |  |  |  |  |  |  |  | 45,319 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Research and development |  |  | 10,190 |  |  |  | — |  |  |  |  |  |  |  | 10,190 |
Sales and marketing |  |  | 26,179 |  |  |  | (355 | ) |  |  | c, e |  |  |  | 25,824 |
General and administrative |  |  | 12,158 |  |  |  | (652 | ) |  |  | j, r |  |  |  | 11,506 |
Restructuring charges |  |  | 31 |  |  |  | 39 |  |  |  | i |  |  |  | 70 |
Total operating expenses |  |  | 48,558 |  |  |  | (968 | ) |  |  |  |  |  |  | 47,590 |
Loss from operations |  |  | (4,785 | ) |  |  | 2,514 |  |  |  |  |  |  |  | (2,271 | )
Other expenses and losses, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  | 2,617 |  |  |  | 21 |  |  |  | r |  |  |  | 2,638 |
Loss on debt extinguishment |  |  | 39 |  |  |  | — |  |  |  |  |  |  |  | 39 |
Other income, net |  |  | (77 | ) |  |  | — |  |  |  |  |  |  |  | (77 | )
Loss before income taxes |  |  | (7,364 | ) |  |  | 2,493 |  |  |  |  |  |  |  | (4,871 | )
Income tax expense |  |  | 499 |  |  |  | (271 | ) |  |  | m, o, p, q |  |  |  | 228 |
Net loss |  | $ | (7,863 | ) |  | $ | 2,764 |  |  |  |  |  |  | $ | (5,099 | )
Net loss per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (0.23 | ) |  |  |  |  |  |  |  |  |  | $ | (0.15 | )
Diluted |  | $ | (0.23 | ) |  |  |  |  |  |  |  |  |  | $ | (0.15 | )
Weighted average common shares outstanding - basic |  |  | 34,561 |  |  |  |  |  |  |  |  |  |  |  | 34,580 |
Weighted average common shares outstanding - diluted |  |  | 34,561 |  |  |  |  |  |  |  |  |  |  |  | 34,580 |
Consolidated statements of cash flows |
|  | For the Six Months Ended September 30, 2017 |
|  | As Reported |  |  | Restatement Adjustments |  |  | Restatement Reference |  |  | As Restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  | $ | (11,537 | ) |  | $ | 2,319 |  |  |  | a, b, e, f, g, h, i, l, n, p, q |  |  | $ | (9,218 | )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 2,525 |  |  |  | 85 |  |  |  | l, r |  |  |  | 2,610 |
Amortization of debt issuance costs |  |  | 855 |  |  |  | — |  |  |  |  |  |  |  | 855 |
Product and service parts lower of cost or market adjustment |  |  | 2,319 |  |  |  | 1,844 |  |  |  | l |  |  |  | 4,163 |
Tax benefit from settlement |  |  | (1,656 | ) |  |  | 1,656 |  |  |  | l |  |  |  | — |
Share-based compensation expense |  |  | 3,330 |  |  |  | (317 | ) |  |  | l |  |  |  | 3,013 |
Non-cash interest expense |  |  | 621 |  |  |  | (621 | ) |  |  | l |  |  |  | — |
Non-cash loss on debt extinguishment |  |  | 9 |  |  |  | 30 |  |  |  | l |  |  |  | 39 |
Pension expense |  |  | — |  |  |  | 733 |  |  |  | l |  |  |  | 733 |
Bad debt expense |  |  | — |  |  |  | 292 |  |  |  | l |  |  |  | 292 |
Deferred income taxes, net |  |  | 144 |  |  |  | (463 | ) |  |  | l, m, o, p |  |  |  | (319 | )
Loss on disposal of property and equipment |  |  | — |  |  |  | 2 |  |  |  | l |  |  |  | 2 |
Unrealized foreign exchange (gain)/loss |  |  | — |  |  |  | 1,019 |  |  |  | l |  |  |  | 1,019 |
Loss on investments |  |  | — |  |  |  | 72 |  |  |  | l |  |  |  | 72 |
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 10,284 |  |  |  | (7,219 | ) |  |  | a, l |  |  |  | 3,065 |
Manufacturing inventories |  |  | (1,752 | ) |  |  | 553 |  |  |  | a, l |  |  |  | (1,199 | )
Service parts inventories |  |  | (2,737 | ) |  |  | 353 |  |  |  | l |  |  |  | (2,384 | )
Accounts payable |  |  | 6,537 |  |  |  | 838 |  |  |  | g, l |  |  |  | 7,375 |
Accrued warranty |  |  | (313 | ) |  |  | 313 |  |  |  | l |  |  |  | — |
Accrued restructuring charges |  |  | 817 |  |  |  | (1,114 | ) |  |  | e, f, g |  |  |  | (297 | )
Accrued compensation |  |  | (1,236 | ) |  |  | (1,031 | ) |  |  | i, l |  |  |  | (2,267 | )
Deferred revenue |  |  | (9,329 | ) |  |  | 3,382 |  |  |  | a, b, l |  |  |  | (5,947 | )
Other assets and liabilities |  |  | 815 |  |  |  | (3,728 | ) |  |  | a, d, g, h, l, m, n, p, q |  |  |  | (2,913 | )
Net cash used in operating activities |  |  | (304 | ) |  |  | (1,002 | ) |  |  |  |  |  |  | (1,306 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases of property and equipment |  |  | (1,156 | ) |  |  | 5 |  |  |  | l |  |  |  | (1,151 | )
Proceeds from sale of assets |  |  | — |  |  |  | 275 |  |  |  | l |  |  |  | 275 |
Cash distributions from investments |  |  | 278 |  |  |  | — |  |  |  |  |  |  |  | 278 |
Net cash used in investing activities |  |  | (878 | ) |  |  | 280 |  |  |  |  |  |  |  | (598 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings of long-term debt and subordinated convertible debt, net of debt issuance costs |  |  | 164,650 |  |  |  | 620 |  |  |  | k |  |  |  | 165,270 |
Repayments on long-term debt |  |  | (160,245 | ) |  |  | 4,479 |  |  |  | k |  |  |  | (155,766 | )
Repayment of convertible subordinated debt |  |  | (6,000 | ) |  |  | (30 | ) |  |  | l |  |  |  | (6,030 | )
Payment of tax withholding due upon vesting of restricted stock |  |  | (1,775 | ) |  |  | (2 | ) |  |  | l |  |  |  | (1,777 | )
Proceeds from issuance of common stock, net |  |  | 1,010 |  |  |  | 2 |  |  |  | l |  |  |  | 1,012 |
Net cash provided by (used in) financing activities |  |  | (2,360 | ) |  |  | 5,069 |  |  |  |  |  |  |  | 2,709 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |  |  | 82 |  |  |  | 247 |  |  |  | l |  |  |  | 329 |
Net decrease in cash, cash equivalents and restricted cash |  |  | (3,454 | ) |  |  | 4,588 |  |  |  |  |  |  |  | 1,134 |
Cash, cash equivalents and restricted cash at the beginning of period |  |  | 36,658 |  |  |  | (746 | ) |  |  |  |  |  |  | 35,912 |
Cash, cash equivalents and restricted cash at the end of period |  | $ | 33,204 |  |  | $ | 3,842 |  |  |  |  |  |  | $ | 37,046 |
Supplemental disclosure of cash flow information: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases of property and equipment included in accounts payable |  | $ | 335 |  |  | $ | (48 | ) |  |  | l |  |  | $ | 287 |
Transfer of inventory to property and equipment |  | $ | — |  |  | $ | 919 |  |  |  | l |  |  | $ | 919 |
Cash Paid For: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest |  | $ | — |  |  | $ | 4,515 |  |  |  | l |  |  | $ | 4,515 |
Taxes, net of refunds |  | $ | — |  |  | $ | 914 |  |  |  | l |  |  | $ | 914 |

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