FalconStor Announces First Quarter Financial Results Revenues Increase 60% from Same Period A Year Ago
biz.yahoo.com
Wednesday April 27, 4:01 pm ET
Breakeven on an EPS Basis
MELVILLE, N.Y.--(BUSINESS WIRE)--April 27, 2005--FalconStor Software, Inc. a leading provider of network storage software solutions, today announced its financial results for the first quarter ended March 31, 2005.
For the first quarter of 2005, revenues increased 60% to $8.4 million, compared with $5.3 million for the same period a year ago. Operating expenses increased 13% from $7.7 million in Q1 2004 to $8.7 million in Q1 2005. The Company broke even on a diluted net loss per share basis compared with a diluted net loss per share of $0.05 for the same period a year ago. Net loss for the quarter was $0.1 million compared with a net loss of $2.2 million for the first quarter of 2004.
Deferred revenue increased 86% from $3.3 million at the end of the first quarter 2004 to $6.1 million at the end of the first quarter 2005. The Company generated $0.9 million in cash from operations and repurchased 125,000 shares during the first quarter at an aggregate cost of $0.9 million. Cash, cash equivalents and marketable securities decreased $0.2 million from $34 million as of December 31, 2004 to $33.8 million as of March 31, 2005.
"In addition to the increase in GAAP revenues, the growth of deferred revenues reflects the faith of IT managers in our technology road map and in our ability to support their mission-critical businesses," said ReiJane Huai, Chairman and CEO of FalconStor Software. "We believe the solid foundation we have established, along with continued investment in R&D, Support Infrastructure and Channel Development will enable the further expansion of our channel and OEM business."
Recent Highlights:
FalconStor continues to sign new customers for its network storage solutions, receive industry recognition for its channel efforts, and advance its product portfolio.
FalconStor continued to receive accolades from leading industry publications, including recognition by the editors of CMP Media's VARBusiness magazine as one of North America's top information-technology vendors. FalconStor received a Five-Star Rating, acknowledging the robust features of its programs for IT integrators, resellers and consultants, and Wendy Petty, FalconStor vice president of sales, was named one of North America's "Top 75 Executives" for IT distribution channels. CMP Media's GovernmentVAR magazine included Tom Schmit, FalconStor sales director, public sector, as part of its "2005 Government Execs - 10 to Watch." This coincided with FalconStor's launch of its Federal Business Partner Program.
FalconStor started shipping the next generation of its iSCSI Storage Server software solution built on Microsoft Windows Storage Server 2003, providing comprehensive disaster recovery, superior disk-based backup and rapid data restore to Windows customers. The Company also announced that its flagship software product, IPStor® Enterprise Edition, fully supports and leverages the Cisco MDS 9000 Series SANTap Service to deliver network assisted storage services, such as continuous data protection and replication, backup consolidation and acceleration, and data migration and cloning, to optimize the availability of mission-critical applications.
FalconStor further cultivated its relationships with solutions integrators worldwide, including Advanced Technology and Systems Co., Ltd. (ADTX), based in Japan, which extended its existing OEM partnership with FalconStor by introducing its new VT-AN400 Series, powered by FalconStor's VirtualTape Library solution; and eSeSIX Computer GmbH, a leading storage reseller and distributor based in Pfaffenhofen, which is offering turnkey appliances, powered by FalconStor's IPStor software, delivering intelligent backup and rapid recovery services in Germany.
New customers from the financial, healthcare, legal and telecommunications sectors continued to select FalconStor solutions for continuous protection and availability of mission-critical data. Key customers announced in the first quarter included: SD WORX, Belgium's leading payroll processing company; Roche Diagnostics GmbH, a world leader in in-vitro diagnostics; Styrian Hospitals Authority Ltd. (KAGes); Addleshaw Goddard, a leading UK law practice; and Cable & Wireless, a leading global telecommunications company. |
