I joined Quantum nearly two years ago, drawn by the incredible potential of a company with happy customers, loyal partners, dedicated employees and a world-class R&D team – terrific assets that unfortunately had been saddled with a weak executive management team making poor business decisions. This situation came to a head in January 2018, when the SEC launched an investigation into the Company’s historical financial reporting practices. This event triggered an internal investigation, shareholder litigation, restatement of multiple years of financial statements, missed bank covenants requiring expensive amendments and fees and ultimately the company’s delisting from the NYSE.
Over the last two years a new executive management team drove a business transformation that included settling the legacy issues with the SEC, settled the shareholder lawsuits, removed $70 million is costs on an annual basis, restated multiple years of annual financial statements, returned to innovation and launched six new products and returned to profitability in the latest quarter. With this transformation complete, the company is now ready to resume trading on a major national exchange.
When Quantum was founded in 1980, the choice to list on the New York Stock Exchange was easy. The NYSE had a rich history dating back to 1792. For nearly 40 years, Quantum investors traded the company’s shares on NYSE under the ticker symbol QTM.
Now, after careful deliberation, we are making Nasdaq our new home for trading Quantum shares under QMCO.
Why the change? In short, Nasdaq is the exchange for companies focused on growth. Apple, Microsoft, Facebook, Amazon, and Google are just a few of the premier brands among the 3,800 companies listed on Nasdaq. Technology companies have gravitated to Nasdaq because the exchange is designed with a more modern approach to trading, and is welcoming to smaller, more nimble companies. Nasdaq hosts a larger share of IPOs than NYSE, and has a reputation as the exchange with a more dynamic business community. The change to Nasdaq reflects Quantum’s transformation, as well as our aspiration to stand shoulder to shoulder with the most influential, innovative and vital technology companies of our time. As Quantum prepares to celebrate its 40-year anniversary, we’ll also look forward to ringing the bell on the floor of the Nasdaq exchange and opening a new chapter in our company history .
Wonderful, Mike! Congratulations To All!