Quantum Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2014. For the quarter, the company's total revenue was $142,063,000 against $145,869,000 a year ago. Income from operations was $9,602,000 against loss from operations of $80,000 a year ago. Income before income taxes was $7,267,000 against loss before income taxes $2,150,000 a year ago. Net income was $6,931,000 or $0.03 per basic and diluted share against net loss of $2,458,000 or $0.01 per basic and diluted per share a year ago. Non-GAAP net income was $10,911,000 or $0.04 basic and diluted per share against $6,185,000 or $0.02 basic and diluted per share a year ago. Non-GAAP income from operations was $13,582,000 against $8,563,000 a year ago. The company generated $2.6 million in cash from operations and ended the quarter with nearly $110 million in total cash and cash equivalents. Non-GAAP operating income was $13.6 million compared to operating income of $8.6 million in the same quarter a year earlier.

For the nine months, the company's total revenue was $405,297,000 against $425,197,000 a year ago. Income from operations was $11,940,000 against $690,000 a year ago. Income before income taxes was $4,795,000 against loss before income taxes of $5,838,000 a year ago. Net income was $3,855,000 or $0.01 per diluted share against net loss of $7,070,000 or $0.03 per basic and diluted share a year ago. Net cash provided by operating activities was $11,117,000 against $15,536,000 a year ago. Purchases of property and equipment were $2,882,000 against $5,026,000 a year ago. Non-GAAP net income was $20,055,000 or $0.08 basic and diluted per share against $15,725,000 or $0.06 basic and diluted per share a year ago. Non-GAAP income from operations was $28,140,000 against $23,485,000 a year ago. The company generated $28 million of non-GAAP operating income and $20 million of non-GAAP net income in the first 9 months of this fiscal year, over $19 million ahead of the first 9 months of fiscal 2014. Cash generated from operations is up more than $10 million from $500,000, and free cash flow has improved $13 million.

For the fourth quarter of 2015, the company expects gross margin rate on a GAAP basis in the range of 42.6% to 44.6% and gross margin rate on a non-GAAP basis in the range of 43% to 45%. Operating expense on GAAP basis in the range of $54.9 million to $55.9 million and operating expense on non-GAAP basis in the range of $52 million to $53 million. Income from operations on a GAAP basis in the range of $2.5 million to $3.5 million and income from operations on a non-GAAP basis in the range of $6 million to $7 million. Net loss of $1.8 million to $0.8 million and net income on non-GAAP basis of $3 million to $4 million. Diluted LPS on a GAAP basis is in the range of $0.01 to $0.00 and diluted LPS on a non-GAAP basis is in the range of $0.01 to $0.02. The company also expects interest expense of $2.1 million, taxes of $500,000.