Quantum (QMCO) 10-Q 29 Jan 20 2020 Q3 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	9 Months Ended
	Dec. 31, 2019	Jan. 27, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	QUANTUM CORP /DE/
Entity Central Index Key	0000709283
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		39,858,691

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 7,542	$ 10,790
Restricted cash	897	1,065
Accounts receivable, net of allowance for doubtful accounts of $264 and $68 as of December 31, 2019 and March 31, 2019, respectively	74,877	86,828
Manufacturing inventories	25,172	18,440
Service parts inventories	18,935	19,070
Other current assets	8,451	18,095
Total current assets	135,874	154,288
Property and equipment, net	8,546	8,437
Restricted cash	5,000	5,000
Right-of-use assets, net	11,910
Other long-term assets	3,973	5,146
Total assets	165,303	172,871
Current liabilities:
Accounts payable	44,643	37,395
Deferred revenue	74,616	90,407
Accrued restructuring charges	0	2,876
Long-term debt	1,650	1,650
Accrued compensation	14,772	17,117
Other accrued liabilities	16,338	29,025
Total current liabilities	152,019	178,470
Deferred revenue	35,349	36,733
Long-term debt, net of current portion	152,414	145,621
Operating lease liabilities	10,045
Other long-term liabilities	10,943	11,827
Total liabilities	360,770	372,651
Commitments and contingencies (Note 6)
Stockholders' deficit
Common stock, $0.01 par value; 125,000 shares authorized; 39,855, and 36,040 shares issued and outstanding at December 31, 2019 and March 31, 2019, respectively	399	360
Additional paid-in capital	504,422	499,224
Accumulated deficit	(699,327)	(697,954)
Accumulated other comprehensive loss	(961)	(1,410)
Total stockholders’ deficit	(195,467)	(199,780)
Total liabilities and stockholders’ deficit	$ 165,303	$ 172,871

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Mar. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 264	$ 68
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	39,855,000	36,040,000
Common stock, shares outstanding	39,855,000	36,040,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenue:	$ 103,315	$ 101,979	$ 314,734	$ 299,403
Cost of revenue:	56,239	58,897	178,309	174,455
Gross profit	47,076	43,082	136,425	124,948
Operating expenses:
Research and development	9,325	7,907	27,058	24,030
Sales and marketing	15,421	16,991	46,101	52,797
General and administrative	10,719	13,481	43,623	46,943
Restructuring charges	(64)	1,227	1,020	5,428
Total operating expenses	35,401	39,606	117,802	129,198
Income (loss) from operations	11,675	3,476	18,623	(4,250)
Other income (expense), net	(611)	3,846	(446)	3,870
Interest expense	(6,425)	(6,238)	(19,079)	(14,809)
Loss on debt extinguishment, net	0	(5,033)	0	(17,458)
Net income (loss) before income taxes	4,639	(3,949)	(902)	(32,647)
Income tax provision (benefit)	(110)	337	471	739
Net income (loss)	$ 4,749	$ (4,286)	$ (1,373)	$ (33,386)
Net income (loss) per share - basic (in usd per share)	$ 0.12	$ (0.12)	$ (0.04)	$ (0.94)
Net income (loss) per share - diluted (in usd per share)	$ 0.10	$ (0.12)	$ (0.04)	$ (0.94)
Weighted average shares - basic	38,134	35,552	36,828	35,500
Weighted average shares - diluted	46,567	35,552	36,828	35,500
Foreign currency translation adjustments, net	$ 839	$ (157)	$ 449	$ (1,126)
Total comprehensive income (loss)	5,588	(4,443)	(924)	(34,512)
Product
Revenue:	66,435	62,986	200,361	181,477
Cost of revenue:	43,672	45,819	140,337	132,576
Service
Revenue:	32,892	34,097	98,673	101,013
Cost of revenue:	12,567	13,078	37,972	41,879
Royalty
Revenue:	$ 3,988	$ 4,896	$ 15,700	$ 16,913

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating activities
Net loss	$ (1,373)	$ (33,386)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	3,119	3,228
Amortization of debt issuance costs	3,012	2,211
Provision for product and service inventories	4,946	7,385
Stock based compensation	5,408	2,818
Non-cash loss on debt extinguishment	0	17,458
Bad debt expense	220	167
Deferred income taxes	242	903
Unrealized foreign exchange (gain) loss	479	(382)
Changes in assets and liabilities:
Accounts receivable	11,731	15,677
Manufacturing inventories	(8,915)	16,475
Service parts inventories	(2,881)	(2,050)
Accounts payable	7,676	(24,031)
Accrued restructuring charges	(2,876)	(1,872)
Accrued compensation	(2,345)	(5,542)
Deferred revenue	(17,176)	(15,783)
Other assets and liabilities	(6,233)	9,371
Net cash used in operating activities	(4,966)	(7,353)
Investing activities
Purchases of property and equipment	(2,327)	(1,755)
Net cash used in investing activities	(2,327)	(1,755)
Financing activities
Borrowings of long-term debt and credit facility	245,590	397,088
Repayments of long-term debt and credit facility	(241,539)	(388,080)
Payment of taxes due upon vesting of restricted stock	(171)	0
Net cash provided by financing activities	3,880	9,008
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(3)	(83)
Net change in cash, cash equivalents and restricted cash	(3,416)	(183)
Cash, cash equivalents, and restricted cash at beginning of period	16,855	17,207
Cash, cash equivalents, and restricted cash at end of period	13,439	17,024
Supplemental disclosure of cash flow information
Cash paid for interest	15,942	12,140
Cash paid for income taxes, net of refunds	155	64
Non-cash transactions
Purchases of property and equipment included in accounts payable	178	159
Transfer of inventory to property and equipment	253	393
Payment of litigation settlements with insurance proceeds	8,950	0
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:
Total cash, cash equivalents and restricted cash at the end of period	$ 13,439	$ 17,024

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Mar. 31, 2018		35,443
Beginning balance at Mar. 31, 2018	$ (173,467)	$ 354	$ 481,610	$ (655,157)	$ (274)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(33,386)			(33,386)
Foreign currency translation adjustments	(1,126)
Shares issued under employee incentive plans, net (in shares)		38
Shares issued under employee incentive plans, net	(6)	$ 1	(7)
Warrants issued related to long-term debt, net	8,753		8,753
Warrants exercised related to long-term debt (in shares)		75
Warrants exercised related to long-term debt, net	176	$ 1	175
Stock-based compensation	2,818		2,818
Ending balance (in shares) at Dec. 31, 2018		35,556
Ending balance at Dec. 31, 2018	(196,238)	$ 356	493,349	(688,543)	(1,400)
Beginning balance (in shares) at Sep. 30, 2018		35,556
Beginning balance at Sep. 30, 2018	(201,648)	$ 356	483,496	(684,257)	(1,243)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(4,286)			(4,286)
Foreign currency translation adjustments	(157)
Warrants issued related to long-term debt, net	8,753		8,753
Stock-based compensation	1,100		1,100
Ending balance (in shares) at Dec. 31, 2018		35,556
Ending balance at Dec. 31, 2018	$ (196,238)	$ 356	493,349	(688,543)	(1,400)
Beginning balance (in shares) at Mar. 31, 2019	36,040	36,040
Beginning balance at Mar. 31, 2019	$ (199,780)	$ 360	499,224	(697,954)	(1,410)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(1,373)			(1,373)
Foreign currency translation adjustments	449				449
Shares issued under employee incentive plans, net (in shares)		1,032
Shares issued under employee incentive plans, net	(171)	$ 11	(182)
Warrants exercised related to long-term debt (in shares)		2,783
Warrants exercised related to long-term debt, net		$ 28	(28)
Stock-based compensation	$ 5,408		5,408
Ending balance (in shares) at Dec. 31, 2019	39,855	39,855
Ending balance at Dec. 31, 2019	$ (195,467)	$ 399	504,422	(699,327)	(961)
Beginning balance (in shares) at Sep. 30, 2019		36,717
Beginning balance at Sep. 30, 2019	(203,110)	$ 368	502,398	(704,076)	(1,800)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4,749			4,749
Foreign currency translation adjustments	839				839
Shares issued under employee incentive plans, net (in shares)		355
Shares issued under employee incentive plans, net	(1)	$ 3	(4)
Warrants exercised related to long-term debt (in shares)		2,783
Warrants exercised related to long-term debt, net		$ 28	(28)
Stock-based compensation	$ 2,056		2,056
Ending balance (in shares) at Dec. 31, 2019	39,855	39,855
Ending balance at Dec. 31, 2019	$ (195,467)	$ 399	$ 504,422	$ (699,327)	$ (961)

DESCRIPTION OF BUSINESS AND SUM

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Quantum Corporation, together with its consolidated subsidiaries (“Quantum” or the “Company”), founded in 1980 and reincorporated in Delaware in 1987, is an industry leader in storing and managing video and video-like data delivering the industry’s top streaming performance for video and rich media applications, along with low cost, high density massive-scale data protection and archive systems. The Company helps customers capture, create and share digital data and preserve and protect it for decades. The Company’s end-to-end, software-defined, hyperconverged storage solutions span from non-violate memory express (“NVMe”), to solid state drives, (“SSD”), hard disk drive, (“HDD”), tape and the cloud and are tied together leveraging a single namespace view of the entire data environment. The Company works closely with a broad network of distributors, value-added resellers (“VARs”), direct marketing resellers (“DMRs”), original equipment manufacturers (“OEMs”) and other suppliers to meet customers’ evolving needs. Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. All intercompany balances and transactions have been eliminated. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. The Company believes the disclosures made are adequate to prevent the information presented from being misleading. However, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included within the Company’s most recent Annual Report on Form 10-K filed with SEC on August 6, 2019, which includes the audited and consolidated financial statements for the Company’s fiscal years ended March 31, 2019, March 31, 2018 and March 31, 2017 (restated). The accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal and recurring items) necessary to present fairly the Company’s financial position as of December 31, 2019 and the results of operations, cash flows and changes in stockholders’ deficit for the three and nine months ended December 31, 2019 and 2018. Interim results are not necessarily indicative of full year performance because of the impact of seasonal and short-term variations. Use of Estimates The preparation of these condensed consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions. Certain accounting estimates involve significant judgments, assumptions and estimates by management that have a material impact on the carrying value of certain assets and liabilities, disclosures of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period, which management considers to be critical accounting estimates. The judgments, assumptions and estimates used by management are based on historical experience, management’s experience and other factors, which are believed to be reasonable under the circumstances. Because of the nature of the judgments and assumptions made by management, actual results could differ materially from these judgments and estimates, which could have a material impact on the carrying values of the Company’s assets and liabilities and the results of operations. Fair Value Measurements The fair value of financial instruments is based on estimates using quoted market prices, discounted cash flows or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and the estimated timing and amount of future cash flows. Therefore, the estimates of fair value may differ substantially from amounts that ultimately may be realized or paid at settlement or maturity of the financial instruments, and those differences may be material. Accordingly, the aggregate fair value amounts presented may not represent the value as reported by the institution holding the instrument. The Company uses the three-tier hierarchy established by U.S. GAAP, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value to determine the fair value of its financial instruments. This hierarchy indicates to what extent the inputs used in the Company’s calculations are observable in the market. The different levels of the hierarchy are defined as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Other than quoted prices that are observable in the market for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs are unobservable and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Recently Adopted Accounting Pronouncements In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). ASU 2018-20 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The Company did not elect to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to accumulated deficit. In June 2018, the FASB issued ASU No. 2018-07, Share-based Payments to Non-Employees (“ASU 2018-07”), to simplify the accounting for share- based payments to non-employees by aligning it with the accounting for share-based payments to employees, with certain exceptions. For public business entities, this ASU is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that fiscal year. The adoption of ASU 2018-07 did not impact the Company’s condensed consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-15, Implementation Costs Incurred in Cloud Computing Arrangements (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). For public entities, ASU 2018-15 is effective for annual reporting periods beginning after December 15, 2019, and interim periods within that fiscal year. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU-2016-13”). ASU 2016-13 will change how entities account for credit impairment for trade and other receivables, as well as for certain financial assets and other instruments. ASU 2016-13 will replace the current “incurred loss” model with an “expected loss” model. Under the “incurred loss” model, a loss (or allowance) is recognized only when an event has occurred (such as a payment delinquency) that causes the entity to believe that it is probable that a loss has occurred (i.e., that it has been “incurred”). Under the “expected loss” model, a loss (or allowance) is recognized upon initial recognition of the asset that reflects all future events that leads to a loss being realized, regardless of whether it is probable that the future event will occur. The “incurred loss” model considers past events and current conditions, while the “expected loss” model includes expectations for the future which have yet to occur. ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , was issued in November 2018 and excludes operating leases from the new guidance. The standard will require entities to record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the potential impact that ASU 2016-13 may have on the timing of recognition and measurement of future provisions for expected losses on its accounts receivable.

REVENUE

REVENUE	9 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Based on how the Company manages its business, the Company has determined that it currently operates in one reportable segment. The Company operates in three geographic regions: (a) Americas; (b) Europe, Middle East and Africa (“EMEA”); and (c) Asia Pacific (“APAC”). Revenue by geography is based on the location of the customer from which the revenue is earned. In the following table, revenue is disaggregated by major product offering and geographies (in thousands): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Americas Primary storage systems $ 17,748 $ 9,488 $ 45,088 $ 28,377 Secondary storage systems 9,461 21,421 48,187 50,162 Device and media 6,467 6,706 24,486 24,618 Service 20,628 22,033 62,564 65,275 Total revenue 54,304 59,648 180,325 168,432 EMEA Primary storage systems 5,384 4,944 12,852 15,887 Secondary storage systems 11,233 11,161 28,967 27,809 Device and media 7,933 3,494 18,106 13,870 Service 10,063 9,421 29,114 27,910 Total revenue 34,613 29,020 89,039 85,476 APAC Primary storage systems 2,555 1,456 7,210 6,094 Secondary storage systems 4,612 3,287 11,127 9,497 Device and media 1,042 1,029 4,338 5,163 Service 2,201 2,643 6,995 7,828 Total revenue 10,410 8,415 29,670 28,582 Consolidated Primary storage systems 25,687 15,888 65,150 50,358 Secondary storage systems 25,306 35,869 88,281 87,468 Device and media 15,442 11,229 46,930 43,651 Service 32,892 34,097 98,673 101,013 Royalty* 3,988 4,896 15,700 16,913 Total revenue $ 103,315 $ 101,979 $ 314,734 $ 299,403 * Royalty revenue is not allocable to geographic regions. Revenue for Americas geographic region outside of the United States is not significant. Contract Balances The following table presents the Company’s contract liabilities and certain information related to this balance as of and for the nine months ended December 31, 2019 (in thousands): December 31, 2019 Contract liabilities (deferred revenue) $ 109,965 Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period $ 70,027 Remaining Performance Obligations Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and contractually agreed upon amounts, yet to be invoiced, that will be recognized as revenue in future periods. Remaining performance obligations are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, adjustments for revenue that have not materialized and foreign exchange adjustments. The Company applied the practical expedient in accordance within ASC 606, Revenue from Contracts with Customers (“ASC 606”), to exclude amounts for variable consideration constituting a sale- or usage-based royalty promised in exchange for a license of intellectual property from remaining performance obligations. Remaining performance obligation consisted of the following (in thousands): Current Non-Current Total As of December 31, 2019 $ 91,052 $ 47,421 $ 138,473 The Company expects to recognize approximately 66% of the remaining performance obligations within the next 12 months. The majority of the Company’s noncurrent remaining performance obligations is expected to be recognized in the next 13 to 60 months.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s assets, measured and recorded at fair value on a recurring basis, may consist of money market funds which are included in cash and cash equivalents in the Condensed Consolidated Balance Sheets and are valued using quoted market prices (level 1 fair value measurements) at the respective balance sheet dates. No impairments charges were recognized for non-financial assets in the three and nine months ended December 31, 2019 and 2018 . The Company has no non-financial liabilities measured and recorded at fair value on a non-recurring basis. Warrants and Warrant Liability The Company uses the Black-Scholes-Merton option valuation model for estimating fair value of common stock warrants. The expected life of warrants granted represent the period of time that they are expected to be outstanding. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, exercise patterns, and post-vesting forfeitures. The Company estimates volatility based on the historical volatility of the common stock over the most recent period corresponding with the estimated expected life of the award. The Company bases the risk-free interest rate used in the Black-Scholes-Merton stock option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent term equal to the expected life of the award. The Company has not paid any cash dividends on the common stock and does not anticipate paying any cash dividends in the foreseeable future. During fiscal year 2018, the Company began issuing common stock warrants in connection with the Term Loan Credit and Security Agreement dated October 21, 2016 with TCW Asset Management Company LLC. The warrants were initially accounted for as a liability and recorded at estimated fair value on a recurring basis due to exercise price reset provisions contained with the warrant agreements. As such, the Company estimated the fair value of the warrants at the end of each reporting period using a Black-Scholes-Merton valuation model. At the end of each reporting period, the Company recorded the changes in the estimated fair value during the period in other (income) expense in the condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2019, the exercise price for these warrants reset and became fixed, at which time they were considered to be indexed to the Company’s own stock and met the scope requirements for equity classification. The fair value of the warrants upon the exercise price reset was reclassified to stockholders’ deficit. The Company classified the warrants liability subject to recurring fair value measurement as Level 3 prior to the reclassification to stockholders’ deficit. As the outstanding warrants were reclassified to stockholders’ deficit in the fourth quarter of fiscal year 2019, there was no warrant liability as of December 31, 2019 and March 31, 2019 . The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuations for the warrant liability for the nine months ended December 31, 2018 (in thousands): Warrant liability As of March 31, 2018 $ 272 Issuances 2,784 Settlements (176 ) Changes in fair value 164 As of December 31, 2018 $ 3,044 Long-term Debt The total estimated fair value of long-term debt as of December 31, 2019 and March 31, 2019 was approximately $162.9 million and $160.3 million , respectively, based on outstanding borrowings and market interest rates for the period. The fair value has been classified as Level 2 within the fair value hierarchy.

INVENTORIES

INVENTORIES	9 Months Ended
	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
INVENTORIES	INVENTORIES Manufacturing and service inventories consist of the following (in thousands): Manufacturing inventories December 31, 2019 March 31, 2019 Finished goods: Manufactured finished goods $ 13,925 $ 8,160 Distributor inventory 527 3,345 Total finished goods 14,452 11,505 Work in progress 885 107 Raw materials 9,835 6,828 Total manufacturing inventories $ 25,172 $ 18,440 Service parts inventories December 31, 2019 March 31, 2019 Finished goods $ 13,735 $ 13,437 Component parts 5,200 5,633 Total service inventories $ 18,935 $ 19,070

LEASES

LEASES	9 Months Ended
	Dec. 31, 2019
Leases [Abstract]
LEASES	LEASES The Company adopted Accounting Standard Update (“ASU”) No. 2016-02, Leases (“Topic 842”) effective April 1, 2019 using the optional transition method in ASU 2018-11, Targeted Improvements . Therefore, the reported results as of December 31, 2019 and for the three and nine months ended December 31, 2019 reflect the application of Topic 842, while the reported results for the three and nine December 31, 2018 and as of March 31, 2019 were not adjusted and continue to be reported under Accounting Standard Codification (“ASC”) 840, Leases , the accounting guidance in effect for the prior periods. Under Topic 842, the Company determines if an arrangement is a lease at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The lease terms are used to determine lease classification as an operating or finance lease and is used to calculate straight-line lease expense for operating leases. The Company elected the package of practical expedients permitted under the transition guidance within Topic 842 to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets also include prepaid lease payments and exclude lease incentives received. As the Company’s leases typically do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date for its leases. The determination of the incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The Company has operating leases for facilities, vehicles, computers, and other office equipment with various expiration dates. The leases have remaining terms of 1 to 8 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. The Company did not use hindsight when determining lease term, therefore, the Company carried forward the lease term as determined prior to the adoption of Topic 842. For new leases with renewal or termination options, such option periods will be included in the determination of the Company’s ROU assets and lease liabilities if the Company is reasonably certain to exercise the option. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. These variable lease costs are recognized as a variable lease expense when incurred. Components of lease cost were as follows (in thousands): Lease Cost Three Months Ended December 31, 2019 Nine Months Ended December 31, 2019 Operating lease cost $ 1,259 $ 3,835 Variable lease cost 109 321 Short-term lease cost 58 89 Total lease cost $ 1,426 $ 4,245 Maturity of Lease Liabilities Operating Leases 2020, excluding the nine months ended December 31, 2019 $ 1,194 For the fiscal year ended March 31, 2021 4,319 2022 3,356 2023 2,443 2024 2,327 Thereafter 4,819 Total lease payments $ 18,458 Less: Imputed interest (5,287 ) Present value of lease liabilities $ 13,171 Supplemental balance sheet information related to leases was as follows: December 31, 2019 Operating lease right-of-use asset $ 11,910 Other current liabilities $ 3,126 Operating lease liability 10,045 Total operating lease liabilities $ 13,171 Lease Term and Discount Rate December 31, 2019 Weighted average remaining operating lease term (years) 5.12 Weighted average discount rate for operating leases 13.91 % Operating cash outflows related to operating leases totaled $3.4 million for the nine months ended December 31, 2019 .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Commitments to Purchase Inventory The Company uses contract manufacturers for its manufacturing operations. Under these arrangements, the contract manufacturer procures inventory to manufacture products based upon management forecast of customer demand. The Company has similar arrangements with certain other suppliers. The Company is responsible for the financial impact on the supplier or contract manufacturer of any reduction or product mix shift in the forecast relative to materials that the third party had already purchased under a prior forecast. Such a variance in forecasted demand could require a cash payment for inventory in excess of current customer demand or for costs of excess or obsolete inventory. As of December 31, 2019 , the Company had issued non-cancelable commitments for $18.3 million to purchase inventory from its contract manufacturers and suppliers. Legal Proceedings On July 22 2016, Realtime Data LLC d/b/a IXO (“Realtime Data”) filed a patent infringement lawsuit against Quantum in the U.S. District Court for the Eastern District of Texas, alleging infringement of U.S. Patents Nos. 7,161,506, 7,378,992, 7,415,530, 8,643,513, 9,054,728, and 9,116,908. The lawsuit has been transferred to the U.S. District Court for the Northern District of California for further proceedings. Realtime Data asserts that we have incorporated Realtime Data’s patented technology into our compression products and services. Realtime Data seeks unspecified monetary damages and other relief that the Court deems appropriate. On July 31, 2017, the District Court stayed proceedings in this litigation pending decision in Inter Partes Review proceedings currently before the Patent Trial and Appeal Board relating to the Realtime patents. That stay remains in effect. We believe the probability that this lawsuit will have a material adverse effect on our business, operating results or financial condition is remote. Other Matters Additionally, from time to time, the Company is a party to various legal proceedings and claims arising from the normal course of business activities. Based on current available information, the Company does not expect that the ultimate outcome of any currently pending unresolved matters, individually or in the aggregate, will have a material adverse effect on the Company’s results of operations, cash flows or financial position.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	9 Months Ended
	Dec. 31, 2019
Restructuring and Related Activities [Abstract]
RESTRUCTURING CHARGES	RESTRUCTURING CHARGES There were no new restructuring plans initiated during the nine months ended December 31, 2019 . In the nine months ended December 31, 2018 , management approved two plans to eliminate 66 positions in the U.S. and internationally. The purpose of these plans was to improve operational efficiencies and align with management’s strategic vision for the Company. Severance and benefits costs of approximately $3.6 million were incurred as a result. The following table summarizes the restructuring activities for the nine months ended December 31, 2019 and 2018 (in thousands): Severance and Benefits Facilities Total Balance as of March 31, 2019 $ — $ 2,876 $ 2,876 Restructuring costs — — — Adjustments to prior estimates — 1,020 1,020 Cash payments — (3,659 ) (3,659 ) Other non-cash — 63 63 Balance as of December 31, 2019 $ — $ 300 $ 300 Balance as of March 31, 2018 $ 1,430 $ 4,389 $ 5,819 Restructuring costs 4,602 55 4,657 Adjustments to prior estimates — 771 771 Cash payments (5,631 ) (1,669 ) (7,300 ) Balance as of December 31, 2018 $ 401 $ 3,546 $ 3,947 Facility restructuring accruals will be paid by the end of the fiscal year ending March 31, 2020.

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	NET INCOME (LOSS) PER SHARE The following outstanding stock-based instruments which are comprised of performance share units, restricted stock units, stock options and warrants were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 — 5,481 7,385 6,247 The dilutive impact related to common shares from restricted stock units, stock options and warrants is determined by applying the treasury stock method of determining value to the assumed vesting of outstanding restricted stock units and the exercise of outstanding options and warrants. The dilutive impact related to common shares from contingently issuable performance share units is determined by applying a two-step approach using both the contingently issuable share guidance and the treasury stock method. For the three and nine months ended December 31, 2019 , there were 0.3 million contingently issuable performance based restricted stock units excluded from the calculation of diluted net income (loss) per share, respectively, as their performance condition had not yet been achieved. These shares will be earned based on the Company’s achievement of certain performance conditions in addition to a time-based vesting period. For the three and nine months ended December 31, 2019 , there were 1.3 million contingently issuable market based restricted stock units excluded from the calculation of diluted net income (loss) per share, respectively, as their market performance condition had not yet been achieved. These shares will be earned based on the Company’s achievement of certain average stock price targets in addition to a time-based vesting period. On November 25, 2019, 3.8 million warrants issued by the Company related to the TCW Term Loan agreement were exercised on a cashless basis resulting in the issuance of 2.8 million shares of common stock.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The effective tax rate for the three and nine months ended December 31, 2019 was -2.7% and -52.2% , respectively, as compared to -9.0% and -2.0% for the three and nine months ended December 31, 2018, respectively. The effective tax rates differed from the federal statutory tax rate of 21% during each of these periods due primarily to unbenefited losses experienced in jurisdictions with valuation allowances on deferred tax assets as well as the forecasted mix of earnings in domestic and international jurisdictions. As of December 31, 2019 , including interest and penalties, the Company had $118.4 million of unrecognized tax benefits, $100.2 million of which, if recognized, would favorably affect the effective tax rate without consideration of the valuation allowance. As of December 31, 2019 , the Company had accrued interest and penalties related to these unrecognized tax benefits of $1.1 million. The Company recognizes interest and penalties related to income tax matters in the income tax provision in the condensed consolidated statements of operations. As of December 31, 2019 , $112.3 million of unrecognized tax benefits were recorded as a contra deferred tax asset in other long-term assets in the condensed consolidated balance sheets and $6.1 million (including interest and penalties) were recorded in other long-term liabilities in the condensed consolidated balance sheets. During the next 12 months, it is reasonably possible that approximately $11.2 million of tax benefits, inclusive of interest and penalties, that are currently unrecognized could be recognized as a result of the expiration of applicable statutes of limitations.

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
LONG-TERM DEBT	DEBT The Company’s long-term debt consisted of the following (in thousands): As of December 31, 2019 March 31, 2019 Senior Secured Term Loan $ 163,350 $ 164,588 Amended PNC Credit Facility 5,289 — Less: current portion (1,650 ) (1,650 ) Less: unamortized debt issuance costs (1) (14,575 ) (17,317 ) Long-term debt, net $ 152,414 $ 145,621 (1) The unamortized debt issuance costs related to the Senior Secured Term Loan are presented as a reduction of the carrying amount of the corresponding debt balance on the accompanying condensed consolidated balance sheets. Unamortized debt issuance costs related to the Amended PNC Credit Facility are presented within other assets on the accompanying condensed consolidated balance sheets. As of December 31, 2019 , the interest rates on the Senior Secured Term Loan and the Amended PNC Credit Facility were 12.0% and 7.8% , respectively. As of December 31, 2019 , after drawing down $5.3 million , the Amended PNC Credit Facility had a remaining borrowing availability of $16.7 million. As of December 31, 2019 , the Company was required to maintain a $5.0 million restricted cash reserve as part of the Amended PNC Credit Facility. This balance is presented as long-term restricted cash within the accompanying condensed consolidated balance sheet as of December 31, 2019 .

DESCRIPTION OF BUSINESS AND S_2

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. All intercompany balances and transactions have been eliminated. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. The Company believes the disclosures made are adequate to prevent the information presented from being misleading. However, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included within the Company’s most recent Annual Report on Form 10-K filed with SEC on August 6, 2019, which includes the audited and consolidated financial statements for the Company’s fiscal years ended March 31, 2019, March 31, 2018 and March 31, 2017 (restated). The accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal and recurring items) necessary to present fairly the Company’s financial position as of December 31, 2019 and the results of operations, cash flows and changes in stockholders’ deficit for the three and nine months ended December 31, 2019 and 2018. Interim results are not necessarily indicative of full year performance because of the impact of seasonal and short-term variations.
Use of Estimates	Use of Estimates The preparation of these condensed consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions. Certain accounting estimates involve significant judgments, assumptions and estimates by management that have a material impact on the carrying value of certain assets and liabilities, disclosures of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period, which management considers to be critical accounting estimates. The judgments, assumptions and estimates used by management are based on historical experience, management’s experience and other factors, which are believed to be reasonable under the circumstances. Because of the nature of the judgments and assumptions made by management, actual results could differ materially from these judgments and estimates, which could have a material impact on the carrying values of the Company’s assets and liabilities and the results of operations.
Fair Value Measurements	Fair Value Measurements The fair value of financial instruments is based on estimates using quoted market prices, discounted cash flows or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and the estimated timing and amount of future cash flows. Therefore, the estimates of fair value may differ substantially from amounts that ultimately may be realized or paid at settlement or maturity of the financial instruments, and those differences may be material. Accordingly, the aggregate fair value amounts presented may not represent the value as reported by the institution holding the instrument. The Company uses the three-tier hierarchy established by U.S. GAAP, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value to determine the fair value of its financial instruments. This hierarchy indicates to what extent the inputs used in the Company’s calculations are observable in the market. The different levels of the hierarchy are defined as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Other than quoted prices that are observable in the market for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs are unobservable and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). ASU 2018-20 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The Company did not elect to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to accumulated deficit. In June 2018, the FASB issued ASU No. 2018-07, Share-based Payments to Non-Employees (“ASU 2018-07”), to simplify the accounting for share- based payments to non-employees by aligning it with the accounting for share-based payments to employees, with certain exceptions. For public business entities, this ASU is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that fiscal year. The adoption of ASU 2018-07 did not impact the Company’s condensed consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-15, Implementation Costs Incurred in Cloud Computing Arrangements (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). For public entities, ASU 2018-15 is effective for annual reporting periods beginning after December 15, 2019, and interim periods within that fiscal year. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU-2016-13”). ASU 2016-13 will change how entities account for credit impairment for trade and other receivables, as well as for certain financial assets and other instruments. ASU 2016-13 will replace the current “incurred loss” model with an “expected loss” model. Under the “incurred loss” model, a loss (or allowance) is recognized only when an event has occurred (such as a payment delinquency) that causes the entity to believe that it is probable that a loss has occurred (i.e., that it has been “incurred”). Under the “expected loss” model, a loss (or allowance) is recognized upon initial recognition of the asset that reflects all future events that leads to a loss being realized, regardless of whether it is probable that the future event will occur. The “incurred loss” model considers past events and current conditions, while the “expected loss” model includes expectations for the future which have yet to occur. ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , was issued in November 2018 and excludes operating leases from the new guidance. The standard will require entities to record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the potential impact that ASU 2016-13 may have on the timing of recognition and measurement of future provisions for expected losses on its accounts receivable.

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Schedule of Revenue from External Customers by Geographic Areas	In the following table, revenue is disaggregated by major product offering and geographies (in thousands): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Americas Primary storage systems $ 17,748 $ 9,488 $ 45,088 $ 28,377 Secondary storage systems 9,461 21,421 48,187 50,162 Device and media 6,467 6,706 24,486 24,618 Service 20,628 22,033 62,564 65,275 Total revenue 54,304 59,648 180,325 168,432 EMEA Primary storage systems 5,384 4,944 12,852 15,887 Secondary storage systems 11,233 11,161 28,967 27,809 Device and media 7,933 3,494 18,106 13,870 Service 10,063 9,421 29,114 27,910 Total revenue 34,613 29,020 89,039 85,476 APAC Primary storage systems 2,555 1,456 7,210 6,094 Secondary storage systems 4,612 3,287 11,127 9,497 Device and media 1,042 1,029 4,338 5,163 Service 2,201 2,643 6,995 7,828 Total revenue 10,410 8,415 29,670 28,582 Consolidated Primary storage systems 25,687 15,888 65,150 50,358 Secondary storage systems 25,306 35,869 88,281 87,468 Device and media 15,442 11,229 46,930 43,651 Service 32,892 34,097 98,673 101,013 Royalty* 3,988 4,896 15,700 16,913 Total revenue $ 103,315 $ 101,979 $ 314,734 $ 299,403 * Royalty revenue is not allocable to geographic regions.
Schedule of Deferred Revenue, by Arrangement	The following table presents the Company’s contract liabilities and certain information related to this balance as of and for the nine months ended December 31, 2019 (in thousands): December 31, 2019 Contract liabilities (deferred revenue) $ 109,965 Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period $ 70,027
Schedule of Remaining Performance Obligation	Remaining performance obligation consisted of the following (in thousands): Current Non-Current Total As of December 31, 2019 $ 91,052 $ 47,421 $ 138,473

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Schedule Of Changes In The Fair Value Of Level 3 Valuation For Warrant Liability	The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuations for the warrant liability for the nine months ended December 31, 2018 (in thousands): Warrant liability As of March 31, 2018 $ 272 Issuances 2,784 Settlements (176 ) Changes in fair value 164 As of December 31, 2018 $ 3,044

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Schedule of Manufacturing Inventories	: Manufacturing inventories December 31, 2019 March 31, 2019 Finished goods: Manufactured finished goods $ 13,925 $ 8,160 Distributor inventory 527 3,345 Total finished goods 14,452 11,505 Work in progress 885 107 Raw materials 9,835 6,828 Total manufacturing inventories $ 25,172 $ 18,440
Schedule of Service Part Inventories	Service parts inventories December 31, 2019 March 31, 2019 Finished goods $ 13,735 $ 13,437 Component parts 5,200 5,633 Total service inventories $ 18,935 $ 19,070

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Lease, Cost	These variable lease costs are recognized as a variable lease expense when incurred. Components of lease cost were as follows (in thousands): Lease Cost Three Months Ended December 31, 2019 Nine Months Ended December 31, 2019 Operating lease cost $ 1,259 $ 3,835 Variable lease cost 109 321 Short-term lease cost 58 89 Total lease cost $ 1,426 $ 4,245
Lessee, Operating Lease, Liability, Maturity	Maturity of Lease Liabilities Operating Leases 2020, excluding the nine months ended December 31, 2019 $ 1,194 For the fiscal year ended March 31, 2021 4,319 2022 3,356 2023 2,443 2024 2,327 Thereafter 4,819 Total lease payments $ 18,458 Less: Imputed interest (5,287 ) Present value of lease liabilities $ 13,171
Assets and Liabilities, Lessee	Supplemental balance sheet information related to leases was as follows: December 31, 2019 Operating lease right-of-use asset $ 11,910 Other current liabilities $ 3,126 Operating lease liability 10,045 Total operating lease liabilities $ 13,171 Lease Term and Discount Rate December 31, 2019 Weighted average remaining operating lease term (years) 5.12 Weighted average discount rate for operating leases 13.91 %

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	9 Months Ended
	Dec. 31, 2019
Restructuring and Related Activities [Abstract]
Activity for accrued restructuring charges	The following table summarizes the restructuring activities for the nine months ended December 31, 2019 and 2018 (in thousands): Severance and Benefits Facilities Total Balance as of March 31, 2019 $ — $ 2,876 $ 2,876 Restructuring costs — — — Adjustments to prior estimates — 1,020 1,020 Cash payments — (3,659 ) (3,659 ) Other non-cash — 63 63 Balance as of December 31, 2019 $ — $ 300 $ 300 Balance as of March 31, 2018 $ 1,430 $ 4,389 $ 5,819 Restructuring costs 4,602 55 4,657 Adjustments to prior estimates — 771 771 Cash payments (5,631 ) (1,669 ) (7,300 ) Balance as of December 31, 2018 $ 401 $ 3,546 $ 3,947

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	9 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Schedule of antidilutive securities excluded from computation of diluted net income (loss) per share	The following outstanding stock-based instruments which are comprised of performance share units, restricted stock units, stock options and warrants were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 — 5,481 7,385 6,247

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of debt	The Company’s long-term debt consisted of the following (in thousands): As of December 31, 2019 March 31, 2019 Senior Secured Term Loan $ 163,350 $ 164,588 Amended PNC Credit Facility 5,289 — Less: current portion (1,650 ) (1,650 ) Less: unamortized debt issuance costs (1) (14,575 ) (17,317 ) Long-term debt, net $ 152,414 $ 145,621 (1) The unamortized debt issuance costs related to the Senior Secured Term Loan are presented as a reduction of the carrying amount of the corresponding debt balance on the accompanying condensed consolidated balance sheets. Unamortized debt issuance costs related to the Amended PNC Credit Facility are presented within other assets on the accompanying condensed consolidated balance sheets.

REVENUE Narrative (Details)

REVENUE Narrative (Details)	3 Months Ended	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2019segment
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Number of reportable segments		1
Percentage of revenue for which commitments are to be honored	66.00%	66.00%
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, timing of satisfaction	13 months
Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, timing of satisfaction	60 months

REVENUE Disaggregation of Reven

REVENUE Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue:	$ 103,315	$ 101,979	$ 314,734	$ 299,403
Americas
Disaggregation of Revenue [Line Items]
Revenue:	54,304	59,648	180,325	168,432
EMEA
Disaggregation of Revenue [Line Items]
Revenue:	34,613	29,020	89,039	85,476
APAC
Disaggregation of Revenue [Line Items]
Revenue:	10,410	8,415	29,670	28,582
Primary storage systems
Disaggregation of Revenue [Line Items]
Revenue:	25,687	15,888	65,150	50,358
Primary storage systems | Americas
Disaggregation of Revenue [Line Items]
Revenue:	17,748	9,488	45,088	28,377
Primary storage systems | EMEA
Disaggregation of Revenue [Line Items]
Revenue:	5,384	4,944	12,852	15,887
Primary storage systems | APAC
Disaggregation of Revenue [Line Items]
Revenue:	2,555	1,456	7,210	6,094
Secondary storage systems
Disaggregation of Revenue [Line Items]
Revenue:	25,306	35,869	88,281	87,468
Secondary storage systems | Americas
Disaggregation of Revenue [Line Items]
Revenue:	9,461	21,421	48,187	50,162
Secondary storage systems | EMEA
Disaggregation of Revenue [Line Items]
Revenue:	11,233	11,161	28,967	27,809
Secondary storage systems | APAC
Disaggregation of Revenue [Line Items]
Revenue:	4,612	3,287	11,127	9,497
Device and media
Disaggregation of Revenue [Line Items]
Revenue:	15,442	11,229	46,930	43,651
Device and media | Americas
Disaggregation of Revenue [Line Items]
Revenue:	6,467	6,706	24,486	24,618
Device and media | EMEA
Disaggregation of Revenue [Line Items]
Revenue:	7,933	3,494	18,106	13,870
Device and media | APAC
Disaggregation of Revenue [Line Items]
Revenue:	1,042	1,029	4,338	5,163
Service
Disaggregation of Revenue [Line Items]
Revenue:	32,892	34,097	98,673	101,013
Service | Americas
Disaggregation of Revenue [Line Items]
Revenue:	20,628	22,033	62,564	65,275
Service | EMEA
Disaggregation of Revenue [Line Items]
Revenue:	10,063	9,421	29,114	27,910
Service | APAC
Disaggregation of Revenue [Line Items]
Revenue:	2,201	2,643	6,995	7,828
Royalty
Disaggregation of Revenue [Line Items]
Revenue:	$ 3,988	$ 4,896	$ 15,700	$ 16,913

REVENUE Certain Information Rel

REVENUE Certain Information Related to Contract Liabilities (Details) $ in Thousands	9 Months Ended
	Dec. 31, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Contract liabilities (deferred revenue)	$ 109,965
Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period	$ 70,027

REVENUE Remaining Performance O

REVENUE Remaining Performance Obligation (Details) $ in Thousands	Dec. 31, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, current	$ 91,052
Remaining performance obligation, non-current	47,421
Remaining performance obligation, total	$ 138,473

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS Schedule of Valuations for the Warrant Liability (Details) $ in Thousands	9 Months Ended
	Dec. 31, 2018USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 272
Issuances	2,784
Settlements	(176)
Changes in fair value	164
Ending balance	$ 3,044

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2019
Level 2 fair value measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value of debt	$ 162.9	$ 160.3

INVENTORIES Schedule of Manufac

INVENTORIES Schedule of Manufacturing Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Mar. 31, 2019
Inventories
Finished goods	$ 14,452	$ 11,505
Work in progress	885	107
Raw materials	9,835	6,828
Total manufacturing inventories	25,172	18,440
Manufactured finished goods
Inventories
Finished goods	13,925	8,160
Distributor inventory
Inventories
Finished goods	$ 527	$ 3,345

INVENTORIES Schedule of Service

INVENTORIES Schedule of Service Parts Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Mar. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Finished goods	$ 13,735	$ 13,437
Component parts	5,200	5,633
Total service inventories	$ 18,935	$ 19,070

LEASES (Details)

LEASES (Details) $ in Millions	9 Months Ended
	Dec. 31, 2019USD ($)
Lessee, Lease, Description [Line Items]
Weighted average remaining operating lease term (years)	5 years 1 month 13 days
Operating cash flows from operating leases	$ 3.4
Minimum
Lessee, Lease, Description [Line Items]
Weighted average remaining operating lease term (years)	1 year
Maximum
Lessee, Lease, Description [Line Items]
Weighted average remaining operating lease term (years)	8 years

LEASES Lease Cost (Details)

LEASES Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Total lease cost	$ 1,426	$ 4,245
Cost of revenue
Lessee, Lease, Description [Line Items]
Operating lease cost	1,259	3,835
Operating expenses
Lessee, Lease, Description [Line Items]
Variable lease cost	109	321
Short-term lease cost	$ 58	$ 89

LEASES Schedule of Lessee Opera

LEASES Schedule of Lessee Operating Lease Liability Maturity (Details) $ in Thousands	Dec. 31, 2019USD ($)
Leases [Abstract]
2020, excluding the nine months ended December 31, 2019	$ 1,194
2021	4,319
2022	3,356
2023	2,443
2024	2,327
Thereafter	4,819
Total lease payments	18,458
Less: Imputed interest	(5,287)
Present value of lease liabilities	$ 13,171

LEASES Supplemental Balance She

LEASES Supplemental Balance Sheet Information (Details) $ in Thousands	Dec. 31, 2019USD ($)
Operating leases
Operating lease right-of-use asset	$ 11,910
Other current liabilities	3,126
Operating lease liabilities	10,045
Total operating lease liabilities	$ 13,171
Weighted average remaining lease term and discount rate
Weighted average remaining operating lease term (years)	5 years 1 month 13 days
Weighted average discount rate for operating leases	13.91%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Dec. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remaining purchase commitments	$ 18.3

RESTRUCTURING CHARGES - Narrati

RESTRUCTURING CHARGES - Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018USD ($)position
Restructuring and Related Activities [Abstract]
Number of positions eliminated | position		66
Severance costs | $	$ 3,600	$ 3,607

RESTRUCTURING CHARGES - Summary

RESTRUCTURING CHARGES - Summary of Restructuring Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Restructuring Reserve [Roll Forward]
Beginning balance			$ 2,876	$ 5,819
Restructuring charges	$ (64)	$ 1,227	1,020	5,428
Cash payments			(3,659)	(7,300)
Other non-cash			63
Ending balance	300	3,947	300	3,947
Severance and Benefits
Restructuring Reserve [Roll Forward]
Beginning balance			0	1,430
Cash payments			0	(5,631)
Other non-cash			0
Ending balance	0	401	0	401
Facilities
Restructuring Reserve [Roll Forward]
Beginning balance			2,876	4,389
Cash payments			(3,659)	(1,669)
Other non-cash			63
Ending balance	$ 300	$ 3,546	300	3,546
Restructuring Costs
Restructuring Reserve [Roll Forward]
Restructuring charges			0	4,657
Restructuring Costs | Severance and Benefits
Restructuring Reserve [Roll Forward]
Restructuring charges			0	4,602
Restructuring Costs | Facilities
Restructuring Reserve [Roll Forward]
Restructuring charges			0	55
Adjustments to Prior Estimates
Restructuring Reserve [Roll Forward]
Restructuring charges			1,020	771
Adjustments to Prior Estimates | Severance and Benefits
Restructuring Reserve [Roll Forward]
Restructuring charges			0	0
Adjustments to Prior Estimates | Facilities
Restructuring Reserve [Roll Forward]
Restructuring charges			$ 1,020	$ 771

NET INCOME (LOSS) PER SHARE - A

NET INCOME (LOSS) PER SHARE - Anti-dilutive shares excluded from the computations of diluted net income (loss) (Details) - shares shares in Thousands	Nov. 25, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive shares excluded		0	5,481	7,385	6,247
Warrants exercised related to long-term debt (in shares)	3,800
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Warrants exercised related to long-term debt (in shares)	2,800

NET INCOME (LOSS) PER SHARE Add

NET INCOME (LOSS) PER SHARE Additional Information (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded	0	5,481	7,385	6,247
Performance Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded	300
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded	1,300

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Income Tax Contingency [Line Items]
Effective income tax rate percentage	(2.70%)	(9.00%)	(52.20%)	(2.00%)
Unrecognized tax benefits	$ 118.4		$ 118.4
Unrecognized tax benefits that would impact effective tax rate	100.2		100.2
Accrued interest and penalties related to unrecognized tax benefits	1.1		1.1
Increase in unrecognized tax benefits, reasonably possible	11.2		11.2
Deferred Tax Asset
Income Tax Contingency [Line Items]
Unrecognized tax benefits	112.3		112.3
Other Noncurrent Liabilities
Income Tax Contingency [Line Items]
Unrecognized tax benefits	$ 6.1		$ 6.1

LONG-TERM DEBT - Schedule of De

LONG-TERM DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Mar. 31, 2019
Debt Instrument [Line Items]
Less: current portion	$ (1,650)	$ (1,650)
Less: unamortized debt issuance costs	(14,575)	(17,317)
Long-term debt, net	152,414	145,621
Senior Secured Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	163,350	164,588
Amended PNC Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	$ 5,289	$ 0

LONG-TERM DEBT - Narrative (Det

LONG-TERM DEBT - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Amount of draw down on credit facility	$ 5,300
Restricted cash, long-term	$ 5,000	$ 5,000	$ 5,000
Senior Secured Term Loan
Debt Instrument [Line Items]
Stated interest rate	12.00%
Amended PNC Credit Facility
Debt Instrument [Line Items]
Stated interest rate	7.75%
Excess availability under revolving credit agreement	$ 16,700