Quantum Corporation ( QMCO )stock are trading lower Thursday after the company reported a fiscal third-quarter earnings miss and issued weaker-than-expected guidance for the fourth quarter.

What To Know: The company posted a GAAP net loss of $71.4 million, or $14.56 per share, significantly worse than the prior year’s $9.9 million loss. A large portion of this was due to a $61.6 million non-cash adjustment related to warrant liabilities.

Despite a revenue increase to $72.6 million and a 230 basis point sequential improvement in gross margins, Quantum’s outlook remains concerning. The company expects fourth-quarter revenue of $66 million, below market expectations, and a non-GAAP net loss per share of $1.16. Adjusted EBITDA guidance for the quarter is just $1.7 million, a decline from this quarter’s $4.7 million.

Quantum is working on reducing its debt and improving liquidity. It recently entered a standby equity purchase agreement with Yorkville Advisors, allowing it to raise capital without a mandatory stock issuance. As of Dec. 31, Quantum had $105.9 million in outstanding term loan debt and $37.5 million in borrowings on its revolving credit facility.

QMCO Price Action: Quantum Corporation ( QMCO ) shares were down 14.4% at $19.89 on Thursday, according to Benzinga Pro.

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