FalconStor: Fiscal 1Q10 Financial Results

FalconStor Software, Inc. announced financial results for its first quarter ended March 31, 2010.

Revenues for the first quarter of 2010 were $17.1 million, compared with $21.0 million for the same period a year ago. GAAP loss from operations for the quarter was $8.5 million, compared with a loss of $0.8 million in the first quarter of 2009. GAAP net loss for the quarter was $5.5 million, or $0.12 per share, compared with a net loss of $0.9 million, or $0.02 per share, in the first quarter of 2009. Stock-based compensation expense was $2.7 million in the first quarter of 2010 and $2.2 million in the first quarter of 2009.

Non-GAAP loss from operations was $5.8 million in the first quarter of 2010, compared with operating income of $1.3 million for the same period a year ago. Non-GAAP net loss was $3.8 million, or $0.08 per share in the first quarter of 2010, compared with net income of $0.6 million, or $0.01 per diluted share, in the first quarter of 2009. Non-GAAP results exclude the effects of stock-based compensation expense net of the related income taxes.

The Company closed the quarter with $40.5 million in cash, cash equivalents, and marketable securities. Deferred revenue at March 31, 2010 was $23.0 million.

"Besides expense containment/reduction, we are also focusing on capturing growth opportunities in data deduplication, data protection and cloud-based services,” said ReiJane Huai, Chairman and Chief Executive Officer of FalconStor. “Through strategic partnerships and cloud-based services we believe we will be able to accelerate the market awareness/acceptance of our solutions and produce long term shareholder value."