Press Release Detail
Spectra Logic Announces Record-Setting Results in the First Half of FY2011
Demand for Modern Data Archive, Compliance and Disaster Recovery Solutions Fuels Demand for Spectra’s Enterprise and Midrange Tape Libraries and Disk Appliances
BOULDER, Colo.—January 27, 2011—Spectra Logic, celebrating more than 30 years of data storage innovation, today announced record-setting revenue and profitability results for the first half of fiscal year 2011, which ended December 31. Following four consecutive years of profitability, Spectra Logic’s momentum continued as it posted increasingly strong profits for the first half of FY 2011. Company revenue increased 34 percent and Spectra’s enterprise tape library revenues grew more than 60 percent year over year during the first half. This tremendous growth reflects strong, accelerating demand for active archive, long-term/offline archive, backup, compliance and disaster recovery solutions.
“More and more organizations are recognizing and embracing the value of tape as they address the challenge of storing, managing and accessing massive amounts of unstructured file data – and Spectra Logic’s accelerating growth and momentum reflects this,” said Nathan Thompson, Spectra Logic’s chief executive officer. “Tape plays an increasingly crucial role in modern data centers, with solutions ranging from active archives to data storage for private and public clouds. The unmatched efficiency advantages tape delivers in energy, space, reliability and scalability, to name a few, ensures its importance in storage strategies will continue to increase.”
Financial highlights and growth drivers
Spectra Logic’s total tape library and media revenues increased more than 50 percent year over year in the first half of fiscal year 2011. In addition, the company’s services/support revenue and its nTier disk appliance unit sales posted double-digit growth. Key growth drivers for the first half of fiscal year 2011 include:
- Exceptionally strong demand for Spectra Logic’s enterprise class tape libraries, the Spectra T-FinityTMand the Spectra® T950, which posted 60 percent revenue growth and 100 percent unit growth year over year. The company’s T-Series tape libraries, the Spectra T200, T380 and T680, also posted gains in both revenue and unit sales. Spectra Logic’s tape library growth was driven in large part by the growing trend toward active archives, tape’s widely-recognized cost advantages, and the simplicity and advanced reporting capabilities of Spectra’s lifecycle management tools. Enterprise tape library sales were particularly strong within sectors that manage massive data volumes, including high performance computing (HPC), media and entertainment and the federal government.
- Demand for Spectra Logic’s T50e and T120 tape librariescontinued to gain momentum achieving revenue growth of 56 percent during the period. Tape media revenues grew 54 percent as tape library sales and continued migration to LTO tape technologies spurred demand.
- Continued international expansion, with Spectra Logic products now installed in more than 40 countries worldwide.
- Strong customer satisfaction and a reputation for quality. Spectra’s tape libraries earned first place in all fourteen categories of the prestigious, customer-selected Storagemagazine/ SearchStorage.com 2010 Quality Awards for enterprise and midrange tape libraries, and ninety-five percent of those surveyed said they would buy Spectra Logic tape libraries again.
- Spectra Logic grew its worldwide channel partner revenue by 70 percent year over year, which was driven by a 10 percent increase in SpectraEDGEchannel partners, strong partner growth in the media and entertainment and federal sectors, and expanded geographic reach in Europe, Canada, South America and India. Spectra Logic currently has more than 500 global SpectraEDGE channel partners.
“Unrelenting data growth is driving IT organizations to look for smarter, more efficient ways to store, access and retrieve their vast volumes of data,” said Patrick Smith, vice president of sales-central region, Advanced Systems Group, a Spectra Logic reseller. “Spectra Logic’s leadership and innovation in active archive technology is delivering a new level of capability to large-scale data environments, allowing them to store and easily retrieve data in ways that were not previously possible. As a result, more customers are implementing tape-based active archives and blended tape and disk solutions to improve the efficiency of their data center environments – and we view Spectra Logic as the gold standard manufacturer of innovative tape library solutions.”
"There is a huge opportunity to help customers deal with rapidly growing data sets, and tape has an extremely vital role to play in storage strategies, from both a backup and online archiving perspective," said Mike Tonks, senior business development manager, Nexstor. "Spectra Logic has exactly the kind of highly-scalable and robust technology that customers are looking for, coupled with an unparalleled set of built-in features around management, maintenance and encryption. With data growth continuing at a record pace, we believe tape will continue to play an increasing role in today’s data centres in the U.K. and across the globe.”
Key product introductions and recognitions
Spectra Logic continued to receive industry-wide recognition, and remained focused on international expansion and customer satisfaction. Announcements and recognitions included:
- Spectra Logic Tape Libraries Sweep Storage Magazine's 2010 Quality Awards, December 2010
- University of Minnesota Selects Spectra Logic Elite Enterprise Tape Library to Support Supercomputing Institute for Advanced Computational Research Data Archive, November 2010
- Spectra Logic and the Active Archive Alliance Promote Simplified, Affordable Online File Archive Access to European Organizations, October 2010
- Spectra nTier Receives High Marks in InfoWorld Test Lab Review, September 2010
- America Tecnologia to Resell Spectra Logic Archive and Backup Products in Brazil, September 2010
- Spectra Logic Awarded Five-Year Extension of U.S. Government Services Administration Contract, August 2010
Spectra T-Finity Tape Library Named 'Green Product of The Year' at Storage Awards, July 2010
"Organizations worldwide are recognizing the strategic importance of tape technologies within today’s fast-growing data storage environments," said Brian Grainger, vice president of worldwide sales, Spectra Logic. “Customers in more than 40 countries depend on Spectra Logic’s archive and backup solutions today, and this global momentum is continuing to intensify as we broaden our expansion across Europe, Africa, the Middle East and South America. Organizations across all industries are embracing tape’s advantages and efficiencies, from HPC, media and entertainment and federal government to financial, healthcare and education. And we will continue to outpace the competition in delivering superior scalability, reliability and efficiency as well as the industry’s most excellent customer service.”
About Spectra Logic Corporation
At Spectra Logic we define, design and deliver innovative data protection through tape, deduplication and disk-based backup, recovery and archive storage solutions. By igniting innovation we challenge expectations of the data protection market with intelligent, integrated, and simple to use backup and archive technologies. Spectra’s tape library product line swept Storage magazine/SearchStorage.com’s 2010 Quality Awards for enterprise and midrange tape libraries, winning first place in all 14 categories. Throughout our 30-plus year history we have delivered high-density, feature rich storage with unmatched service and support to customers worldwide. For more information, visit www.SpectraLogic.com.
Kathleen Sullivan, 303-439-9365
Linda Dellett, 303-439-9398
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