FalconStor Software Announces Q2 Quarterly Results
biz.yahoo.com
Thursday July 27, 4:05 pm ET
Revenues Increase 33% from Prior Year and 38% from Previous Quarter
MELVILLE, N.Y.--(BUSINESS WIRE)--July 27, 2006--FalconStor Software, Inc. (NASDAQ: FALC), the leading developer of proven data protection solutions, today announced financial results for its second quarter ended June 30, 2006.
Revenues for the second quarter of 2006 increased 33% to $12.7 million, compared with $9.5 million for the same period a year ago. Net loss for the quarter was $1.3 million or $0.03 per share, which includes $2.4 million in expenses related to employee stock options. Pro forma net income for the second quarter of 2006, excluding employee stock option expense, was $1.1 million or $0.02 per share, compared with net income of $0.3 million or $0.01 per share for the second quarter of 2005.
For the six months ended June 30, 2006, revenues increased 22% to $21.9 million, compared with $17.9 million for the same period a year ago. Net loss for the six month period was $4.9 million or $0.10 per share, which includes $4.7 million in expenses related to employee stock options. Pro forma net loss for the six month period, excluding employee stock option expense, was $0.3 million or $0.01 per share, compared with net income of $0.2 million and breakeven earnings per share for the same period a year ago.
Compared with the previous quarter, revenues increased 38% from $9.2 million in the first quarter of 2006 to $12.7 million in the second quarter of 2006. Net loss for the second quarter was $1.3 million or $0.03 per share, which includes $2.4 million in expenses related to employee stock options, compared with a net loss of $3.6 million or $0.08 per share in the first quarter, which includes $2.3 million in expenses related to employee stock options. Excluding employee stock option expenses, pro forma net income increased to $1.1 million or $0.02 per share in the second quarter of 2006 compared with a pro forma net loss of $1.4 million or $0.03 per share in the first quarter of 2006.
The Company closed the quarter with $39.5 million in cash, cash equivalents and marketable securities and recorded its seventh consecutive quarter of positive cash flows from operations. During the second quarter of 2006, the Company repurchased 250,000 shares of Common Stock for a total cost of $1.7 million. Deferred revenue at June 30, 2006, increased to $11.1 million, or by 10%, compared with the previous quarter, and by 61% compared with the same period a year ago.
"We are pleased with our Q2 business performance and the adoption of our technology by strategic partners around the world." said ReiJane Huai, Chairman and CEO of FalconStor. "We are confident about our product's competitive position and our ability to leverage partnerships to expand market coverage and channel distribution to realize the growth potential ahead of us." |
