FalconStor Posts Losses, Looks to Rebound
FalconStor Software recently announced its Q3 report, showing disappointing losses. The provider of data storage and protection products lost $26.4 million in its third quarter ending September 30, leaving the revenues to $19 million as compared to $21.6 million last year.
No explanations were given on the losses, nor was any forecast made for the next quarter. The company filed its Q3 results late, and reported that it happened due to an internal investigation regarding alleged improper payments and past accounting methods. This loss has resulted in a slight decline in FalconStor’s share price on Tuesday which closed at $2.85. However, Falconstor’s deal with HP is expected to soften the blow.
A possible reason behind the loss is that the company faced rough times as CEO ReiJane Huai abruptly resigned from his position last month.
“Mr. Huai tendered his resignation following his disclosure that certain improper payments were allegedly made in connection with the Company’s contract with one customer,” says the company’s released statement.
Jim McNeil, VP and Chief Strategy Officer of FalconStor has assumed control and is looking to will take the company in the right direction. He recently offered and focused on the importance of virtualization of cloud storage to cut down production-related costs at SiliconAngle’s #theCUBE.
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