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What: Shares of Quantum (NYSE: QTM ) have tanked today by as much as 30% after the company reported preliminary earnings that fell short of expectations.
So what: The company said it expects revenue to land right at $141 million, generating an adjusted net loss of between $0.03 and $0.04 per share. That's worse than the guidance it provided back in May as well as the Street consensus of $155 million in sales and a breakeven bottom line.
Now what: Quantum cited weakness in Europe and trouble closing big deals near the end of the quarter as the culprit for the shortfall. CEO Jon Gacek said the company was seeing sales momentum but it wasn't enough to overcome its challenges. Its official earnings release will be on July 31. This adds additional fodder to the broader worries of soft IT spending, particularly in Europe as macro uncertainties continue to weigh.
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