Shares of Quantum Corp. QTM went down more than 13% in after-hours trading yesterday, after the company reported not-so-encouraging fourth-quarter of fiscal 2016 results. Quantum’s earnings per share of 2 cents matched the Zacks Consensus Estimate and were down from 4 cents per share reported in the year-ago quarter. Adjusted earnings per share exclude amortization of intangible assets, restructuring charges and other one-item items but include stock-based compensation expense. Quantum Corporation (QTM) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany Quarter DetailsTotal revenue for the fourth quarter was $120 million, down 18.8% on a year-over-year basis. Revenues also came in line with the Zacks Consensus Estimate. The year-on-year decrease was primarily due to a decline in Product revenues (down 25.7%) and Service revenues (down 6.6%) to $72.8 million and $36.3 million, respectively. However, Royalty revenues grew a slight 0.3% to $10.9 million on year-over-year basis.Revenues from Disk backup systems came in at $18.1 million, down $7.1 million from the year- ago quarter, primarily due to lower revenues from mid-range products. Revenues from Branded tape automation came in at $34.6 million whereas OEM tape automation revenues were $10.1 million during the quarter.Adjusted gross margin in the quarter (excluding amortization of intangible assets, restructuring charges and other one-item items but including stock-based compensation expense) was 45.7%, up from 42.2% in the year-ago quarter due to lower cost of sales.Adjusted operating income came in at $7.1 million, up from $3.3 million reported in the year-ago quarter. Operating margin during the quarter also increased 368 basis points (bps) to 5.9%. The company’s adjusted operating expenses increased 77.6% on a year-over-year basis.Adjusted net income (excluding amortization of intangible assets, restructuring charges and other one-item items but including stock-based compensation expense) was $5.2 million or 2 cents per share compared with net income of $15.1 million or 4 cents in the year-ago quarter.Quantum exited the quarter with cash and cash equivalents of $33.9 million compared with $32.9 million in the previous quarter. The company used $11.7 million in operating cash during the twelve months ended Mar 31, 2016. The company had $3.0 million as long-term debt in its balance sheet.OutlookFor the first quarter of fiscal 2017, management expects revenues to be in a range of $111–$115 million (mid-point $113 million). The Zacks Consensus Estimate is pegged at $115 million. This apart, the company expects non-GAAP gross margin in a range of 43%–44%. The company expects non-GAAP operating expenses to be in a range of $52 to $52 million. Non-GAAP loss per share for the first quarter is expected to be in a range of $1 cent to 2 cents per share. The Zacks Consensus Estimate is pegged at a loss of 1 cent.For fiscal 2017, the company expects revenues to be approximately $500 million. The Zacks Consensus Estimate is pegged at $486 million. This apart, the company expects non-GAAP gross margin in a range of 43%–44%. The company expects non-GAAP operating expenses to be in a range of $200 to $2007 million. Non-GAAP loss per share for fiscal 2017 is expected to be in a range of $1 cent to 4 cents. The Zacks Consensus Estimate is pegged at a loss of 2 cents.Our TakeQuantum reported not so encouraging fourth-quarter results, as both the top and bottom lines matched the Zacks Consensus Estimate and compared unfavorably on a year-over-year basis. Also, Quantum’s first quarter revenue guidance was weak.Nonetheless, new product launches and go-to-market strategies should act as growth catalysts, given the increasing demand for data security and big data management.However, the company competes with bellwethers such as International Business Machines Corporation IBM, HP Inc. HPQ and Oracle Corporation ORCL who are slowly tightening their grip on the market. Moreover, a tepid IT spending environment may temper its growth prospects to some extent.Currently, Quantum has a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HP INC (HPQ): Free Stock Analysis Report QUANTUM CP-DSSG (QTM): Free Stock Analysis Report INTL BUS MACH (IBM): Free Stock Analysis Report ORACLE CORP (ORCL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research