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Rule 424(b)(3) and (c)
Registration No. 333-18583
OVERLAND DATA, INC.
Supplement No. 1 dated March 17, 1997 to
Prospectus dated February 21, 1997
The following information supplements the Prospectus, dated February 21,
1997 (the "Prospectus"), of Overland Data, Inc., a California corporation (the
"Company"), relating to the Offering, as defined in the Prospectus.
The Company has been notified by Quantum Corporation ("Quantum"), that
Quantum's new DLT7000 drives have been placed on allocation, and that
shipments to the Company are anticipated to be significantly less than the
quantities ordered by the Company to meet its currently projected
requirements. Quantum is the sole supplier of the DLT7000 drive which is used
in one of the products within the Company's LibraryXpress family of automated
tape libraries. The Company has been informed by Quantum that the supply
problems are primarily attributable to the high level of market demand which
exceeds Quantum's current production capacity. Quantum anticipates
significant improvements over the next two calendar quarters in its
production capability.
The Company anticipates that this allocation could adversely affect up to
$1 million and $4 million of sales for its third quarter ending March 31,
1997 and fourth quarter ending June 30, 1997, respectively. Notwithstanding
the shortfall in sales, the Company anticipates that third quarter earnings
will be only slightly below its internal forecast because of unrelated
expense savings during the quarter. The ultimate impact on the Company's
revenues and profits in the fourth and subsequent quarters will depend upon
the level of allocation versus the demand for the DLT7000 versions of the
LibraryXpress family of products and the success of alternative courses of
action developed by the Company.
This Prospectus Supplement should be read in conjunction with the
Prospectus (in particular, the sections titled "Risk Factors - Dependence
on Certain Suppliers" and "Business - Manufacturing"), and this Prospectus
Supplement is qualified by reference to the Prospectus, except to the extent
that the information herein contained supersedes the information contained in
the Prospectus. The information contained in this Prospectus Supplement
includes forward looking statements that involve risks and uncertainties. The
Company's actual results could differ materially from those discussed herein.