Gross Profits and Margins Improve
SAN DIEGO , Oct. 23 /PRNewswire-FirstCall/ -- Overland Storage, Inc. (Nasdaq: OVRL) today reported results for its fiscal 2009 first quarter ended September 30, 2008 .
Net revenue for the fiscal 2009 first quarter was
The company noted that increased sales through its branded sales channel nearly offset the expected sales decline to OEM customers during the fiscal 2009 first quarter in comparison to the fiscal 2008 first quarter. Specifically, in the fiscal 2009 first quarter, sales to the company's largest OEM customer were down 25.2 percent compared to the fiscal 2008 first quarter, reflecting the continuing transition by the customer to a different product. Conversely, the company's branded revenue increased 12.3 percent compared to the prior year quarter, reflecting the addition of revenue from the Snap Server(R) line of products that the company acquired on June 27, 2008 .
The company further noted that net revenue for the fiscal 2009 first quarter grew 11.6 percent on a sequential basis, compared to net revenue of
Gross profit increased 34.8 percent from
Operating expenses in the fiscal 2009 first quarter were
"It was a challenging quarter, but there are two very positive elements included in our reported results that I want to highlight," stated Vern LoForti , president and chief executive officer of Overland Storage. "First is the 16.5 percent sequential growth in branded revenue from the 2008 fourth quarter. This increase reflects an improved revenue stream from the Snap acquisition. Second is the significant improvement in our gross profit margin to 27.0 percent. Revenue growth and higher gross profit margins are key elements to our recovery.
"In our first quarter, we accomplished two significant tasks: the integration of the Snap business that we bought at the end of June and the restructuring that we triggered at the end of August. In both instances, I am extremely pleased with the timeliness and efficiency of these transitions. By the end of September, we had substantially completed the integration of both the Snap personnel and its business systems into Overland, as originally planned. At this point, we have completed training our worldwide sales force about Snap products and continue training our channel partners. We are now introducing the products to our entire channel, a critical step toward maximizing our Snap investment.