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SAN DIEGO, CA -- (Marketwire) -- 02/13/13 -- Overland Storage (NASDAQ: OVRL), a trusted global provider of effortless data management and data protection solutions across the data lifecycle, today reported financial results for its fiscal 2013 second quarter ended December 31, 2012.

"During the second fiscal quarter, we experienced strong demand, compared to the preceding quarter, which was reflected in our unit sales across all product lines including a 34 percent increase in SnapServer, a 30 percent increase in NEO Tape Libraries, and a 21 percent increase in SnapSAN," said Eric Kelly, President and CEO of Overland Storage. "In addition, we achieved 42 percent sequential revenue growth in Europe. With the release of our new clustered NAS product, SnapScale X2™, last October, we have significantly expanded our total addressable market, and we continue to see a growing pipeline of new primary storage opportunities generated by our SnapSAN and SnapScale X2 clustered NAS solutions. In addition, we were pleased to announce today a $14.25 million financing comprised of convertible notes and equity. We plan to use this additional capital to fund further growth and capitalize on the substantial opportunities we see ahead."

Second Quarter Fiscal 2013 Financial Results:

•Net revenue for the second quarter of fiscal 2013 was $12.6 million, up 8% sequentially from $11.7 million for the first quarter of fiscal 2013, and down 17% from $15.1 million in the second quarter of fiscal 2012.

•Product revenue for the second quarter of fiscal 2013 was $7.8 million, up 18% sequentially from $6.6 million for the first quarter of fiscal 2013, and down 14% from $9.1 million in the second quarter of fiscal 2012.

•Gross margins of 36.5% for the second quarter of fiscal 2013 were up 280 basis points sequentially from 33.7% in the first quarter of fiscal 2013, and up over 300 basis points from 33.2% in the second fiscal quarter of 2012.

•Operating expenses for the second quarter of fiscal 2013 were $8.7 million, compared to $8.6 million in the first quarter of fiscal 2013 and $9.3 million for the second quarter of fiscal 2012.

•Depreciation and amortization was $0.3 million in the second quarter of fiscal 2013 compared to $0.3 million in the first fiscal quarter of 2013 and $0.4 million in the second quarter of fiscal 2012.

•Stock compensation expense was $1.3 million in the second quarter of fiscal 2013, compared to $1.3 million for the first quarter of fiscal 2013 and $1.4 million for the second quarter of fiscal 2012.

•Net loss for the second fiscal quarter of 2013 was $4.3 million, or a loss of $0.15 per share, compared to a net loss of $4.9 million, or a loss of $0.17 per share, in the first quarter of fiscal 2013 and a net loss of $4.3 million, or a loss of $0.18 per share, in the second quarter of fiscal 2012.

•Total cash and cash equivalents at December 31, 2012 was $3.2 million, compared to $10.5 million at June 30, 2012. At December 31, 2012, the Company had $3.5 million outstanding under its credit facility.