FalconStor Software Announces Q4 and Full Year Financial Results
biz.yahoo.com
Wednesday February 8, 4:00 pm ET
Achieves Profitability and Positive Cash Flows on Full Year Basis
Revenues Increase 43% Year over Year
MELVILLE, N.Y.--(BUSINESS WIRE)--Feb. 8, 2006--FalconStor Software, Inc. (Nasdaq: FALC), a leading provider of adaptive data protection solutions, today announced financial results for its fourth quarter and fiscal year ended December 31, 2005.
Revenues for the quarter increased 37% to $13 million, compared with $9.5 million for the same period a year ago. Net income for the fourth quarter of 2005 was $1.7 million, or $0.03 per share, compared with net income for the fourth quarter of 2004 of $0.3 million, or $0.01 per share.
The Company reached profitability on a full year basis for the first time in 2005. For the twelve months ended December 31, 2005, revenues increased 43% to $41 million compared with $28.7 million for the year ended December 31, 2004. Net income for 2005 was $2.3 million, or $0.05 per share, compared with a net loss for 2004 of $5.9 million or $0.13 per share. 2004 results included a litigation settlement charge of $1.3 million and legal fees of $1.0 million, each associated with patent infringement litigation that was resolved in 2004.
Revenues for the fourth quarter of 2005 increased 29% compared with the previous quarter, from $10.1 million to $13 million. Net income for the fourth quarter of 2005 was $1.7 million, or $0.03 per share, compared with net income for the third quarter of 2005 of $0.5 million, or $0.01 per share.
The Company closed the quarter with $36.6 million in cash, cash equivalents and marketable securities, a $1.5 million increase from the previous quarter. Deferred revenue at December 31, 2005, increased to $9.6 million, or 27%, compared with the previous quarter, and by 79% compared with the same period a year ago.
"The financial performance of 2005 underscores the strong market acceptance of our leading-edge technology and the scalability of our business model," said FalconStor Chairman and CEO ReiJane Huai. "We are charging ahead with an expanded product portfolio, key partnerships, a focused sales/distribution channel, and strategic marketing/PR initiatives. Our dedicated staff is committed to making 2006 a banner year for FalconStor."
Company Highlights
2005 proved to be another year of outstanding growth and achievements for FalconStor.
Deloitte's prestigious Technology Fast 50 List recognized FalconStor as one of the 50 fastest growing technology companies in the area, based on percentage revenue growth over five years from 2000-2004.
For outstanding achievement in technology innovation, VARBusiness magazine named FalconStor's IPStor® Enterprise Edition software a winner in the storage category of the VARBusiness Tech Innovator awards competition and included FalconStor's iSCSI Storage Server in its Top 100 Mid-market Solutions.
During 2005, FalconStor continued to enhance the core capabilities of its IPStor and VirtualTape Library (VTL) software. This includes a version of IPStor optimized to run on System-On-Chip ("SOC") platforms, such as Intel Corporation's XScale I/O Processor.
FalconStor has established a new OEM partnership with a leading computer, networking and communications products manufacturer to offer an entry-level data storage and protection appliance, powered by IPStor/SOC, targeting the Small & Medium Business/Small Home Office ("SMB/SOHO") market. The launch is scheduled for the first quarter of 2006. The SOC-based storage appliance will enable SMB/SOHO users to perform local backup/recovery.
In the fourth quarter of 2005, FalconStor entered into a strategic OEM partnership with a major IP-networking solution provider headquartered in Hangzhou, China. Product launch, and an announcement detailing the scope of the collaboration between the two companies, is scheduled for the first quarter of 2006.
The company will host a conference call on Wednesday, February 8th at 4:30 p.m. Eastern Time, to discuss the results. To participate in the call, Toll Free: 800-366-7417 or International: 303-262-2140. To view the presentation, please copy and paste the following link into your browser:
falconstor.webex.com
Follow the instructions to register and join this meeting.
Meeting Name: FalconStor Q4 2005 Earnings
Meeting password: numbers
Meeting number: 481 386 824
A conference call replay will be available beginning 2/8 at 6:30
PM ET through 6:30 PM on 2/9. To listen to the replay of the call,
dial Toll Free: 800-405-2236 or International: 303-590-3000
Passcode: 11051484# or visit our website at
falconstor.com. |
