Posted by: Dave Raffo
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Overland Storage is giving customers extra disk and tape storage for no charge as part of a holiday season promotion, while Nasdaq is threatening to bring the vendor a lump of coal for Christmas.
Overland initiated two promotions this week, offering customers an additional 4 TB when they purchase a 4 TB SnapServer N2000 NAS/iSCSI system and 1.2PB of free capacity if they buy an NEO 8000e 1.2 PB tape library.
Overland’s attempt to jumpstart sales with these promotions comes as the Nasdaq is threatening to delist the vendor from the stock exchange because it is not in compliance with the exchange’s minimum standards for shareholders’ equity, market value or income. Overland has until Dec. 31 to present a compliance plan to Nasdaq explaining how it plans to meet one of the minimum standards.
After receiving the compliance plan, Nasdaq can grant Overland an extension up to 180 days to accomplish its goals before it is delisted.
Overland faced a similar delisting threat last year and has a history of financial losses, including a $6.5 million loss last quarter on revenue of $17.6 million – a revenue decline of 9% from last year. Overland had $4.3 million in cash at the end of the quarter, but has since sold $4.2 million of stock to investors. Overland’s stock price opened today at $1.30.
The vendor has put together a new management team over the last year under CEO Erik Kelly, including CTO Geoff Barrall and VP of global sales and marketing Jillian Mansolf, and is trying t o rebound with its Snap and NEO platforms. However, two key executives who joined Overland in 2009 — Ravi Pendekanti and Chris Gopal – left this year.