Quantum Corporation (NYSE:QTM)

QTM ($8.38) added two new board members:

“QTM announced the appointments of Adalio Sanchez and Marc Rothman to Quantum's board of directors. Sanchez is a 35-year information technology industry veteran who spent most of his career at IBM Corp., including 16 years in senior executive and global general management roles. He is currently president of S Group Advisory LLC, a firm providing expertise and management consulting services. Rothman is executive vice president and chief financial officer at VeriFone Inc., responsible for leading the company's finance, information technology, and real estate organizations, and has more than 30 years of global finance and merger and acquisition experience.

Sanchez and Rothman were appointed to Quantum's board as part of an agreement the company reached with VIEX Capital Advisors in early March of this year to reconstitute the board with a majority of new, independent directors. They replaced current board members John Mutch and Jon Gacek (Gacek remains president and CEO of Quantum).

The director search process went well, resulting in a pool of highly qualified and capable candidates," said Eric Singer, founder and managing member of VIEX. "I appreciate this constructive collaboration with Quantum and look forward to identifying a third new board member. We strongly support all members of the reconstituted board as they build on the company's industry leadership and market opportunities to generate significant value for all Quantum shareholders."

QTM recently effected a 1 for 8 stock split on April 19, 2017.  We added QTM to our GeoBargain “On the Radar” list on April 12, 2017 as restructuring efforts were beginning to bear fruit. You can can see our original note here.

The GeoTeam® is taking a closer look at Quantum Corp, a global data storage company.  After three years of  annual and quarterly losses the company has been able to post two consecutive profitable quarters in a row.

First Quarter Press Release
Second Quarter Press Release

It seems that growth is coming from a product shift that has led to lower revenues, but higher margins. With over 200 million shares outstanding, nearly $300 million in long-term debt and negative shareholder equity QTM does meet the quality requirements of the GeoTeam®. However, we will still track the story to determine if this turn around is sustainable. Fueled by bullish company commentary the stock may offer some short-term appreciation potential. We have placed QTM on the GeoSpecial Radar list.