The following constitutes the Schedule 13D filed by the undersigned (the “Schedule 13D”).
Item 1. | Security and Issuer. |
This statement relates to the Common Stock, $0.01 par value per share (the “Shares”), of Quantum Corporation, a Delaware corporation (the “Issuer”). The address of the principal executive offices of the Issuer is 224 Airport Parkway, Suite 300, San Jose, California 95110.
Item 2. | Identity and Background. |
| (a) | This statement is filed by: |
| (i) | VIEX Opportunities Fund, LP – Series One (“Series One”), a series of VIEX Opportunities Fund, LP, a Delaware series limited partnership formerly known as Vertex Opportunities Fund, LP (“VIEX Opportunities”) with respect to the Shares directly and beneficially owned by it; |
| (ii) | VIEX Opportunities Fund, LP – Series Two (“Series Two”), a series of VIEX Opportunities, with respect to the Shares directly and beneficially owned by it; |
| (iii) | VIEX Special Opportunities III, LP, a Delaware limited partnership formerly known as Vertex Special Opportunities III, LP (“VSO III”), with respect to the Shares directly and beneficially owned by it; |
| (iv) | VIEX GP, LLC, a Delaware limited liability company formerly known as Vertex GP, LLC (“VIEX GP”), as the general partner of Series One and Series Two; |
| (v) | VIEX Special Opportunities GP III, LLC, a Delaware limited liability company formerly known as Vertex Special Opportunities GP III, LLC (“VSO GP III”), as the general partner of VSO III; |
| (vi) | VIEX Capital Advisors, LLC, a Delaware limited liability company formerly known as Vertex Capital Advisors, LLC (“VIEX Capital”), as the investment manager of each of Series One, Series Two, and VSO III; and |
| (vii) | Eric Singer, as managing member of each of VIEX GP, VSO GP III, and VIEX Capital. |
(b) The address of the principal office of each of the Reporting Persons is 825 Third Ave. 33rd Floor, New York, New York 10022.
(c) The principal business of Series One and Series Two is investing in securities. The principal business of VIEX GP is acting as the general partner of Series One and Series Two. The principal business of VSO III is investing in securities. The principal business of VSO GP III is acting as the general partner of VSO III. VIEX Capital serves as the investment manager to Series One and Series Two. The principal occupation of Mr. Singer is serving as the managing member of each of VIEX GP and VIEX Capital.
(d) No Reporting Person has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).
(e) No Reporting Person has, during the last five years, been party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
(f) Each of VIEX Opportunities (which includes Series One and Series Two), VIEX GP, VSO III and VSO GP III and VIEX Capital is organized under the laws of the State of Delaware. Mr. Singer is a citizen of the United States of America.
Item 3. | Source and Amount of Funds or Other Consideration. |
The Shares purchased by Series One were purchased with working capital (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business) in open market purchases, except as otherwise noted, as set forth in Schedule A, which is incorporated by reference herein. The aggregate purchase price of the 7,407,865 Shares beneficially owned by Series One is approximately $5,769,100, excluding brokerage commissions.
The Shares purchased by Series Two were purchased with working capital (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business) in open market purchases, except as otherwise noted, as set forth in Schedule A, which is incorporated by reference herein. The aggregate purchase price of the 1,413,191 Shares beneficially owned by Series Two is approximately $970,290, excluding brokerage commissions.
The Shares purchased by VSO III were purchased with working capital (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business) in open market purchases, except as otherwise noted, as set forth in Schedule A, which is incorporated by reference herein. The aggregate purchase price of the 5,674,734 Shares beneficially owned by VSO III is approximately $3,979,253 excluding brokerage commissions.
Item 4. | Purpose of Transaction. |
The Reporting Persons purchased the Shares based on the Reporting Persons’ belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices that would make the purchase or sale of Shares desirable, the Reporting Persons may endeavor to increase or decrease their position in the Issuer through, among other things, the purchase or sale of Shares on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.
No Reporting Person has any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) - (j) of Item 4 of Schedule 13D except as set forth herein or such as would occur upon or in connection with completion of, or following, any of the actions discussed herein. The Reporting Persons intend to review their investment in the Issuer on a continuing basis. Depending on various factors including, without limitation, the Issuer’s financial position and investment strategy, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without limitation, engaging in communications with management and the Board of the Issuer, engaging in discussions with shareholders of the Issuer and others about the Issuer and the Reporting Persons’ investment, making additional proposals to the Issuer concerning changes to the capitalization, ownership structure, board structure (including board composition) or operations of the Issuer, purchasing additional Shares, selling some or all of their Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares, or changing their intention with respect to any and all matters referred to in Item 4.
Item 5. | Interest in Securities of the Issuer. |
The aggregate percentage of Shares reported owned by each Reporting Person is based upon 263,919,475 Shares outstanding, which is the total number of Shares outstanding as of October 30, 2015 as reported in the Issuer’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on November 6, 2015.
| (a) | As of 12:00 p.m. (Eastern Standard Time) on December 28, 2015, Series One beneficially owned 7,407,865 Shares. |
Percentage: Approximately 2.8%
| (b) | 1. Sole power to vote or direct vote: 0 |
| 2. Shared power to vote or direct vote: 7,407,865 |
| 3. Sole power to dispose or direct the disposition: 0 |
| 4. Shared power to dispose or direct the disposition: 7,407,865 |
| (c) | The transactions in the Shares by Series One during the past sixty days are set forth in Schedule A and are incorporated herein by reference. |
| (a) | As of 12:00 p.m. (Eastern Standard Time) on December 28, 2015, Series Two beneficially owned 1,413,191 Shares. |
Percentage: Less than 1%
| (b) | 1. Sole power to vote or direct vote: 0 |
| 2. Shared power to vote or direct vote: 1,413,191 |
| 3. Sole power to dispose or direct the disposition: 0 |
| 4. Shared power to dispose or direct the disposition: 1,413,191 |
| (c) | The transactions in the Shares by Series Two during the past sixty days are set forth in Schedule A and are incorporated herein by reference. |
| (a) | As of 12:00 p.m. (Eastern Standard Time) on December 28, 2015, VSO III beneficially owned 5,674,734 Shares. |
Percentage: Approximately 2.2%
| (b) | 1. Sole power to vote or direct vote: 0 |
| 2. Shared power to vote or direct vote: 5,674,734 |
| 3. Sole power to dispose or direct the disposition: 0 |
| 4. Shared power to dispose or direct the disposition: 5,674,734 |
| (c) | The transactions in the Shares by VSO III during the past sixty days are set forth in Schedule A and are incorporated herein by reference. |
| (a) | VIEX GP, as the general partner of Series One and Series Two, may be deemed the beneficial owner of the (i) 7,407,865 shares owned by Series One and (ii) 1,413,191 shares owned by Series Two. |
Percentage: Approximately 3.3%
| (b) | 1. Sole power to vote or direct vote: 0 |
| 2. Shared power to vote or direct vote: 8,821,056 |
| 3. Sole power to dispose or direct the disposition: 0 |
| 4. Shared power to dispose or direct the disposition: 8,821,056 |
| (c) | VIEX GP has not entered into any transactions in the Shares during the past sixty days. The transactions in the Shares on behalf of Series One and Series Two during the past sixty days are set forth in Schedule A and are incorporated herein by reference. |
| (a) | VSO GP III, as the general partner of VSO III, may be deemed the beneficial owner of the 5,674,734 shares owned by VSO III. |
Percentage: Approximately 2.2%
| (b) | 1. Sole power to vote or direct vote: 0 |
| 2. Shared power to vote or direct vote: 5,674,734 |
| 3. Sole power to dispose or direct the disposition: 0 |
| 4. Shared power to dispose or direct the disposition: 5,674,734 |
| (c) | VSO GP III has not entered into any transactions in the Shares during the past sixty days. The transactions in the Shares on behalf of VSO III during the past sixty days are set forth in Schedule A and are incorporated herein by reference. |
| (a) | VIEX Capital, as the investment manager of Series One and Series Two, may be deemed the beneficial owner of the (i) 7,407,865 Shares owned by Series One, (ii) 1,413,191 Shares owned by Series Two and (iii) 5,674,734 owned by VSO III. |
Percentage: Approximately 5.5%
| (b) | 1. Sole power to vote or direct vote: 0 |
| 2. Shared power to vote or direct vote: 14,495,790 |
| 3. Sole power to dispose or direct the disposition: 0 |
| 4. Shared power to dispose or direct the disposition: 14,495,790 |
| (c) | VIEX Capital has not entered into any transactions in the Shares during the past sixty days. The transactions in the Shares on behalf of Series One, Series Two and VSO III during the past sixty days are set forth in Schedule A and are incorporated herein by reference. |
| (a) | Mr. Singer, as the managing member of VIEX GP and VIEX Capital, may be deemed the beneficial owner of the (i) 7,407,865 Shares owned by Series One, (ii) 1,413,191 Shares owned by Series Two and (iii) 5,674,734 owned by VSO III. |
Percentage: Approximately 5.5%
| (b) | 1. Sole power to vote or direct vote: 0 |
| 2. Shared power to vote or direct vote: 14,495,790 |
| 3. Sole power to dispose or direct the disposition: 0 |
| 4. Shared power to dispose or direct the disposition: 14,495,790 |
| (c) | Mr. Singer has not entered into any transactions in the Shares during the past sixty days. The transactions in the Shares on behalf of Series One, Series Two and VSO III during the past sixty days are set forth in Schedule A and are incorporated herein by reference. |
| The filing of this Schedule 13D shall not be construed as an admission that the Reporting Persons are, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, the beneficial owners of any of the Shares reported herein. Each Reporting Person disclaims beneficial ownership of such Shares except to the extent of his or its pecuniary interest therein. |
| (d) | No person other than the Reporting Persons is known to have the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, the Shares. |
Item 6. | Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer. |
On December 28, 2015, the Reporting Persons entered into a Joint Filing Agreement in which the Reporting Persons agreed to the joint filing on behalf of each of them of statements on Schedule 13D with respect to the securities of the Issuer to the extent required by applicable law. The Joint Filing Agreement is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Other than as described herein, there are no contracts, arrangements, understandings or relationships among the Reporting Persons, or between the Reporting Persons and any other person, with respect to the securities of the Issuer.
Item 7. | Material to be Filed as Exhibits. |
| 99.1 | Joint Filing Agreement by and among VIEX Opportunities Fund, LP – Series One, VIEX Opportunities Fund, LP – Series Two, VIEX Special Opportunities III, LP, VIEX GP, LLC, VIEX Special Opportunities GP III, LLC, VIEX Capital Advisors, LLC and Eric Singer, dated December 28, 2015. |
SIGNATURES
After reasonable inquiry and to the best of his knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.
Dated: December 28, 2015
| VIEX Opportunities Fund, LP – Series One |
| |
| By: | VIEX GP, LLC General Partner |
| |
| By: | /s/ Eric Singer |
| | Name: | Eric Singer |
| | Title: | Managing Member |
| VIEX Opportunities Fund, LP – Series Two | |
| | |
| By: | VIEX GP, LLC General Partner |
| | | |
| By: | /s/ Eric Singer | | |
| | Name: | Eric Singer | | |
| | Title: | Managing Member | | |
| VIEX GP, LLC |
| |
| By: | /s/ Eric Singer |
| | Name: | Eric Singer |
| | Title: | Managing Member |
| VIEX Special Opportunities Fund III, LP |
| |
| By: | VIEX Special Opportunities GP III, LLC General Partner |
| |
| By: | /s/ Eric Singer |
| | Name: | Eric Singer |
| | Title: | Managing Member |
| VIEX Special Opportunities GP III, LLC |
| |
| By: | /s/ Eric Singer |
| | Name: | Eric Singer |
| | Title: | Managing Member |
| VIEX Capital Advisors, LLC |
| |
| By: | /s/ Eric Singer |
| | Name: | Eric Singer |
| | Title: | Managing Member |
| /s/ Eric Singer |
| Eric Singer |
SCHEDULE A
Transactions in the Shares during the past sixty days to the Schedule 13D
Nature of the Transaction | Securities Purchased/(Sold) | Price Per Share($) | Date of Purchase / Sale |
VIEX OPPORTUNITIES FUND, LP – SERIES ONE
Purchase of Common Stock | 652,255 | 0.8530 | 11/19/2015 |
Purchase of Common Stock | 250,000 | 0.8800 | 11/20/2015 |
Purchase of Common Stock | 426,000 | 0.8879 | 11/20/2015 |
Purchase of Common Stock | 82,000 | 0.8878 | 11/23/2015 |
Purchase of Common Stock | 212,000 | 0.8894 | 11/24/2015 |
Purchase of Common Stock | 542,000 | 0.8885 | 11/25/2015 |
Purchase of Common Stock | 4,020 | 0.8693 | 11/27/2015 |
Purchase of Common Stock | 769,368 | 0.8700 | 11/30/2015 |
Purchase of Common Stock | 52,560 | 0.8792 | 11/30/2015 |
Purchase of Common Stock | 8,500 | 0.8789 | 12/02/2015 |
Purchase of Common Stock | 180,000 | 0.8625 | 12/03/2015 |
Purchase of Common Stock | 180,000 | 0.8475 | 12/04/2015 |
Purchase of Common Stock | 189,010 | 0.8102 | 12/07/2015 |
Purchase of Common Stock | 32,392 | 0.8040 | 12/08/2015 |
Purchase of Common Stock | 175,000 | 0.7933 | 12/09/2015 |
Purchase of Common Stock | 51,800 | 0.7893 | 12/10/2015 |
Purchase of Common Stock | 67,981 | 0.7740 | 12/11/2015 |
Purchase of Common Stock | 1,200,000 | 0.7000 | 12/16/2015 |
Purchase of Common Stock | 2,332,979 | 0.6797 | 12/16/2015 |
VIEX OPPORTUNITIES FUND, LP – SERIES TWO
Purchase of Common Stock | 480,000 | 0.7000 | 12/16/2015 |
Purchase of Common Stock | 933,191 | 0.6797 | 12/16/2015 |
VIEX SPECIAL OPPORTUNITIES FUND III, LP
Purchase of Common Stock | 90,300 | 0.8297 | 12/22/2015 |
Purchase of Common Stock | 46,100 | 0.7690 | 12/22/2015 |
Purchase of Common Stock | 110,047 | 0.7491 | 12/21/2015 |
Purchase of Common Stock | 1,698,300 | 0.7007 | 12/18/2015 |
Purchase of Common Stock | 1,000,000 | 0.7121 | 12/17/2015 |
Purchase of Common Stock | 610,200 | 0.7029 | 12/17/2015 |
Purchase of Common Stock | 720,000 | 0.7000 | 12/16/2015 |
Purchase of Common Stock | 1,399,787 | 0.6797 | 12/16/2015 |