FalconStor Looks to New Horizon, Reports Growth for 4Q11
Backup appliances maker FalconStor Software reported its earnings for the fourth quarter of fiscal 2011, displaying growth after the turmoil the company has been through in the past couple of years.
“We are very pleased that we exceeded $25.0 million in total revenue for Q4 2011, an increase of over $6.5 million, or 35% from Q3 2011,” said Jim McNiel, president and CEO of FalconStor. “This reflects continued growth and momentum in our business and the markets we serve.”
In 2011 the company generated in $82.9 million, just marginally more than the $82.8 million it reported for the previous year. GAAP net loss added up to $23.4 million, or $0.50 per share in 2011, compared with a loss of $35.4 million, or $0.78 per share in 2010.
2011 had its rough patches, starting with the dismissal of FalconStor founding CEO ReiJane Huai. The resulting investigations and lawsuits took their toll on the company, which was forced to pay over $10 million in associated costs last year. The sum was divided between legal fees, $2.8 million, and $7.5 million in expenses related to the regulatory review.
New horizon
Under McNiel, FalconStor is recovering and is getting back on a growth track. Just a bit over a week ago the company landed an OEM agreement with hardware giant Dell, which will offer a data migration service based on Flacon’s Network Storage Server (NSS) technology.
Backup and recovery tie in with storage, an industry that is growing nicely alongside others, thanks to cloud adoption in the enterprise. Companies have more data to analyze, store and backup, creating an opportunity for the likes of FalconStor and other vendors to build out this space.
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