Overland Storage Announces $5 Million Foreign Receivable Financing Agreement
March 25 2009 - 7:30AM
PR Newswire (US)
SAN DIEGO, March 25 /PRNewswire-FirstCall/ -- Overland Storage,
Inc. (NASDAQ:OVRL) today announced that it had closed an accounts
receivable financing transaction with FGI Finance. Under the terms
of the agreement, FGI may finance up to $5 million of Overland's
foreign accounts receivable to provide the company with accelerated
liquidity. The term of the agreement is two years with annual
renewals thereafter. "This financing agreement with FGI for foreign
receivables complements the $9 million domestic receivable
financing with Marquette Commercial Finance that was put in place
last November," said Eric Kelly, chief executive officer of
Overland Storage. "It also is reflective of the fact that
approximately 40 percent of our branded revenues are generated
outside of North America. We believe that together these two
financing arrangements will allow us to continue our recovery and
execute our strategy." About FGI Finance FGI Finance is a global
commercial finance firm with clients in over 60 countries around
the world. FGI helps middle market companies by providing them with
various financial products, business loans and financial services
to meet their financing needs. FGI Finance provides financing in
over 15 foreign currencies and has a presence in six continents.
For more information, visit FGI Finance's web site at
http://www.fgifinance.com/ About Overland Storage Overland Storage
provides affordable end-to-end data protection solutions that are
engineered to store smarter, protect faster and extend
anywhere--across networked storage, media types, and multi-site
environments. Overland Storage products include award-winning NEO
SERIES(R) and ARCvault(R) tape libraries, REO SERIES(R) disk-based
backup and recovery appliances with VTL capabilities, Snap
Server(R) NAS appliances, and ULTAMUS(R) RAID high-performance,
high-density storage. Overland sells its products through leading
OEMs, commercial distributors, storage integrators and value-added
resellers. For more information, visit Overland's web site at
http://www.overlandstorage.com/ Except for the factual statements
made herein, the information contained in this news release
consists of forward-looking statements that involve risks,
uncertainties and assumptions that are difficult to predict. Words
and expressions reflecting optimism, satisfaction or disappointment
with current prospects, as well as words such as "believes,"
"hopes," "intends," "estimates," "expects," "projects," "plans,"
"anticipates" and variations thereof, identify forward-looking
statements, but their absence does not mean that a statement is not
forward-looking. Such forward-looking statements are not guarantees
of performance and the company's actual results could differ
materially from those contained in such statements. Factors that
could cause or contribute to such differences include: failure to
obtain sufficient funding for us to execute our business strategy;
the inability or unwillingness of FGI and Marquette to perform its
obligations or otherwise provide funding under the accounts
receivable financing agreement; unexpected delays or costs related
to the acquisition and integration of the Snap business; possible
delays in new product introductions and shipments; failure to
achieve desired benefits from cost-cutting measures; market
acceptance of the company's new product offerings; the ability to
maintain strong relationships with branded channel partners; the
timing and market acceptance of new product introductions by
competitors; worldwide information technology spending levels;
unexpected shortages of critical components; our inability to
penetrate the video surveillance market successfully; rescheduling
or cancellation of customer orders; loss of a major customer;
general competition and price pressures in the marketplace; the
company's ability to control costs and expenses; and general
economic conditions. Reference is also made to other factors
detailed from time to time in the company's periodic reports filed
with the Securities and Exchange Commission. These forward-looking
statements speak only as of the date of this release and the
company undertakes no obligation to publicly update any
forward-looking statements to reflect new information, events or
circumstances after the date of this release. Overland, Overland
Storage, REO Series, REO, NEO Series, NEO, ARCvault, ULTAMUS, Snap
Server, GuardianOS and Snap Enterprise Data Replicator are
trademarks of Overland Storage, Inc. DATASOURCE: Overland Storage
CONTACT: Kurt L. Kalbfleisch, VP Finance and CFO of Overland
Storage, +1-858-571-5555, ; or Sue Hetzel of HetzelMeade
Communications, +1-760-434-9927, , for Overland Storage Web Site:
http://www.overlandstorage.com/
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