FalconStor Software Reports First Quarter Financial Results

May 4th, 2012 by simran Leave a reply »

FalconStor Software, Inc. FALC -3.71% , the provider of disk-based data protection solutions, today announced financial results for its first quarter ended March 31, 2012.

Total revenues for the first quarter of 2012 increased by over 2% to $19.4 million, compared with $19.0 million in the same period a year ago. GAAP loss from operations for the first quarter of 2012 was $2.1 million, compared with loss from operations of $5.7 million for the same period a year ago. GAAP net loss for the quarter was $2.4 million, or $0.05 per share compared with a net loss of $6.0 million, or $0.13 per share for the same period a year ago. Included in the operating results for the first quarter of 2012 was a net reduction of the costs associated with the ongoing government investigations of $1.3 million. The $1.3 million was comprised of a $1.7 million reduction in the accrual for certain costs associated with the possible resolution of the investigations from $7.5 million to $5.8 million, less $0.4 million in legal fees associated with the investigations in the quarter. During the same period in 2011, the Company had $2.6 million of costs associated with the ongoing government investigations, comprised of $1.1 million of legal fees and an accrual of $1.5 million for certain costs associated with the possible resolution of the government investigations.

Non-GAAP loss from operations was $1.9 million in the first quarter of 2012, compared with Non-GAAP loss from operations of $1.7 million for the same period a year ago. Non-GAAP net loss was $2.3 million, or $0.05 per share, in the first quarter of 2012, compared with Non-GAAP net loss of $2.0 million, or $0.04 per share, in the first quarter of 2011. Non-GAAP results exclude the effects of costs associated with the ongoing government investigations and stock-based compensation net of the related income taxes, when applicable.

The Company closed the quarter with $37.6 million in cash, cash equivalents, and marketable securities, down $0.2 million from December 2011. Cash flow from operations for the first quarter of 2012 was $0.4 million. Deferred revenue at March 31, 2012 was $27.9 million, an increase of 9% compared with the same period a year ago.

“I am pleased that our business continues to grow and that it outperformed our Q1 results from last year, despite the reduction in our legacy OEM business,” said Jim McNiel, president and CEO of FalconStor Software. “We continue to see growth and momentum in our global channel, particularly in the Asia-Pacific region. We recently launched our award-winning PartnerChoice program in Asia, which further strengthens our commitment to both the Asia-Pacific region and our global channel business. We look forward to carrying this momentum forward for the rest of 2012.”

Source:http://www.marketwatch.com/story/falconstor-software-reports-first-quarter-financial-results-2012-05-03

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