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Quantum ActiveScale & Telestream DIVA Build Sustainable Media Archives
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Key Takeaways
QMCO certified DIVA with ActiveScale object storage to support long-term media archiving.
QMCO expects about $67M in Q3 revenue as backlog tops $25M, reflecting strong sales momentum.
Quantum strengthened financial flexibility by converting $52M debt and cutting total debt by $140M.
The media industry is experiencing a surge in content creation. As content libraries expand into the petabyte range, the challenge is no longer just about storing data but about preserving valuable media securely, sustainably and cost-effectively for decades. Quantum Corporation (QMCO - Free Report) has joined forces with Telestream to address this challenge.
Telestream’s DIVA content management platform is now officially certified with Quantum ActiveScale object storage, including its integrated ActiveScale Cold Storage tier. This certification strengthens a long-standing partnership between the two companies and delivers a powerful, modern solution for long-term media preservation. Telestream has validated all current versions of DIVA with Quantum ActiveScale and ActiveScale Cold Storage using the S3 API. The certification spans archiving, retrieval, metadata and policy-based lifecycle management across on-premises and hybrid environments, with both companies confirming interoperability and providing joint customer support.
Media companies are creating and keeping more content than ever, putting pressure on them to store it safely, affordably and for the long term. As content libraries grow across sports, broadcast, production and streaming, DIVA helps keep archives organized, searchable and ready to reuse. However, preserving this data for decades requires storage that is energy-efficient, secure and cost-effective at a massive scale, something cloud and disk systems often struggle with. With rising cloud costs and growing content value, customers are turning to modern, on-premises S3 object storage for predictable costs and sustainable archiving.
The combined solution delivers a modern archive platform for sports, broadcast, production and enterprise users managing long-term video libraries. With DIVA certified across all ActiveScale tiers, customers can seamlessly scale from terabytes to multi-petabytes, maintain consistent workflows across on-premises and cloud S3 environments, simplify ingest and retrieval through a unified API, preserve aging content cost-effectively and avoid unpredictable cloud egress fees while retaining cloud-like flexibility.
Management attributes the company’s stronger financial flexibility to the debt restructuring, rising backlog and positive adjusted EBITDA. Cost cuts, key wins like the Library of Congress project, product innovation and a sharper go-to-market strategy support further momentum, while the company stays cautious about supply chain risks and consistent execution ahead.
During the quarter, QMCO took a major step toward becoming debt-free by signing a definitive agreement with Dialectic to convert approximately $52 million of term debt into senior secured convertible notes, subject to shareholder approval. The company also removed existing leverage and minimum liquidity covenants and secured flexibility to use $15 million from its Standby Equity Purchase Agreement for working capital if needed.
This milestone significantly strengthens Quantum’s financial flexibility, supporting execution of its operating initiatives and refreshed go-to-market strategy. Upon shareholder approval, the company will have reduced total debt by $140 million from its 2020 peak, placing Quantum in its strongest financial position in years.
QMCO ended the fiscal second quarter with one of the largest backlogs in its history, exceeding $25 million versus its typical $8–10 million range, highlighting strong sales momentum and solid customer confidence. Driven by momentum, the company expects fiscal third-quarter revenues to be $67 million (+/-2 million).
How QMCO’s Peers are Placed in the Broader Storage Space
Western Digital Corporation (WDC - Free Report) is benefiting from a booming AI and cloud computing demand environment. Increasing sales in the cloud end market are driven by solid demand for higher-capacity nearline products. It aims to ensure scalability in HAMR qualification ahead of volume production in early 2027. Strong free cash flow and a dividend hike signal a shareholder-friendly strategy. It expects fiscal second-quarter revenues of $2.9 billion (+/- $100 million), up 20%, driven by strong data center demand and HDD uptake. However, high debt burden, stiff rivalry and extended production lead times pose concerns.
Super Micro Computer (SMCI - Free Report) is well-positioned to benefit from the growing demand for AI infrastructure. The company is often the first to market with the latest AI servers, including systems built on NVIDIA’s B200 and GB200 platforms, giving it a strong edge. Its modular design approach allows rapid customization, supported by a large R&D team that integrates the newest chips from NVIDIA and AMD. Its liquid cooling technology, DLC-2, supports sustainable data center growth. Nonetheless, trade restrictions and strong competition may hurt global sales. Lingering concerns from past accounting issues remain a major negative.
Continued momentum across the all-flash portfolio, with especially strong Keystone adoption and growth in first-party and marketplace cloud storage services, is driving NetApp, Inc. (NTAP - Free Report) performance. Nearly 46% of systems in the installed base under active support contracts are now all-flash. Deepening ties with hyperscalers act as a tailwind. However, management highlighted weakness in spending in the U.S. public sector and EMEA. It anticipates headwinds in the U.S. public sector during the second half of the year. Fiscal 2026 revenues are reaffirmed to be in the range of $6.625-$6.875 billion. Stiff competition is another concern.
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Quantum ActiveScale & Telestream DIVA Build Sustainable Media Archives
Key Takeaways
The media industry is experiencing a surge in content creation. As content libraries expand into the petabyte range, the challenge is no longer just about storing data but about preserving valuable media securely, sustainably and cost-effectively for decades. Quantum Corporation (QMCO - Free Report) has joined forces with Telestream to address this challenge.
Telestream’s DIVA content management platform is now officially certified with Quantum ActiveScale object storage, including its integrated ActiveScale Cold Storage tier. This certification strengthens a long-standing partnership between the two companies and delivers a powerful, modern solution for long-term media preservation. Telestream has validated all current versions of DIVA with Quantum ActiveScale and ActiveScale Cold Storage using the S3 API. The certification spans archiving, retrieval, metadata and policy-based lifecycle management across on-premises and hybrid environments, with both companies confirming interoperability and providing joint customer support.
Media companies are creating and keeping more content than ever, putting pressure on them to store it safely, affordably and for the long term. As content libraries grow across sports, broadcast, production and streaming, DIVA helps keep archives organized, searchable and ready to reuse. However, preserving this data for decades requires storage that is energy-efficient, secure and cost-effective at a massive scale, something cloud and disk systems often struggle with. With rising cloud costs and growing content value, customers are turning to modern, on-premises S3 object storage for predictable costs and sustainable archiving.
The combined solution delivers a modern archive platform for sports, broadcast, production and enterprise users managing long-term video libraries. With DIVA certified across all ActiveScale tiers, customers can seamlessly scale from terabytes to multi-petabytes, maintain consistent workflows across on-premises and cloud S3 environments, simplify ingest and retrieval through a unified API, preserve aging content cost-effectively and avoid unpredictable cloud egress fees while retaining cloud-like flexibility.
QMCO Eyes $67M Q3 Revenue on Debt Reset & $25M Backlog Jump
Management attributes the company’s stronger financial flexibility to the debt restructuring, rising backlog and positive adjusted EBITDA. Cost cuts, key wins like the Library of Congress project, product innovation and a sharper go-to-market strategy support further momentum, while the company stays cautious about supply chain risks and consistent execution ahead.
During the quarter, QMCO took a major step toward becoming debt-free by signing a definitive agreement with Dialectic to convert approximately $52 million of term debt into senior secured convertible notes, subject to shareholder approval. The company also removed existing leverage and minimum liquidity covenants and secured flexibility to use $15 million from its Standby Equity Purchase Agreement for working capital if needed.
This milestone significantly strengthens Quantum’s financial flexibility, supporting execution of its operating initiatives and refreshed go-to-market strategy. Upon shareholder approval, the company will have reduced total debt by $140 million from its 2020 peak, placing Quantum in its strongest financial position in years.
QMCO ended the fiscal second quarter with one of the largest backlogs in its history, exceeding $25 million versus its typical $8–10 million range, highlighting strong sales momentum and solid customer confidence. Driven by momentum, the company expects fiscal third-quarter revenues to be $67 million (+/-2 million).
How QMCO’s Peers are Placed in the Broader Storage Space
Western Digital Corporation (WDC - Free Report) is benefiting from a booming AI and cloud computing demand environment. Increasing sales in the cloud end market are driven by solid demand for higher-capacity nearline products. It aims to ensure scalability in HAMR qualification ahead of volume production in early 2027. Strong free cash flow and a dividend hike signal a shareholder-friendly strategy. It expects fiscal second-quarter revenues of $2.9 billion (+/- $100 million), up 20%, driven by strong data center demand and HDD uptake. However, high debt burden, stiff rivalry and extended production lead times pose concerns.
Super Micro Computer (SMCI - Free Report) is well-positioned to benefit from the growing demand for AI infrastructure. The company is often the first to market with the latest AI servers, including systems built on NVIDIA’s B200 and GB200 platforms, giving it a strong edge. Its modular design approach allows rapid customization, supported by a large R&D team that integrates the newest chips from NVIDIA and AMD. Its liquid cooling technology, DLC-2, supports sustainable data center growth. Nonetheless, trade restrictions and strong competition may hurt global sales. Lingering concerns from past accounting issues remain a major negative.
Continued momentum across the all-flash portfolio, with especially strong Keystone adoption and growth in first-party and marketplace cloud storage services, is driving NetApp, Inc. (NTAP - Free Report) performance. Nearly 46% of systems in the installed base under active support contracts are now all-flash. Deepening ties with hyperscalers act as a tailwind. However, management highlighted weakness in spending in the U.S. public sector and EMEA. It anticipates headwinds in the U.S. public sector during the second half of the year. Fiscal 2026 revenues are reaffirmed to be in the range of $6.625-$6.875 billion. Stiff competition is another concern.