Tape automation vendor Overland Storage Inc has finally seen an end to the problems in its OEM sales caused by the HP/Compaq merger, and expects to report revenue and earnings for the second quarter to December 31 at the top end or above its previous guidance. While it now expects revenue to be in the region of $39m, 14.4% down on the level a year earlier, this will represent a 13% sequential increase. Earnings per share are expected to be $0.04.
Around 60% of the San Diego, California-based company’s sales came from Compaq and its revenue in the past two quarters was hit as the company was absorbed into HP. Overland said that while sales to its OEM customers have been stronger than expected, it expects branded channel sales to reach record levels.