Crossroads: Fiscal 1Q17 Financial Results

Crossroads Systems, Inc., reported financial results for its fiscal first quarter ended January 31, 2017.

On March 22, 2016, Crossroads sold its product business to Canadian-based StrongBox Data Solutions, Inc. The presentation of the company’s quarterly financial results excludes product revenues and expenses, which are now reflected as discontinued operations in the prior period.

Fiscal Q1 2017 Financial Results

• IP license revenue was $19,000, compared to $210,000 in the same quarter a year ago. Gross profit was $16,000 or 84% of revenue, compared to $159,000, or 76% of revenue in the same quarter a year ago.
• Operating expenses decreased 63% to $863,000, compared to $2.3 million in the same period a year ago. The decreases were primarily due to reduced litigation related expenses.
• Net loss available to common stockholders was $(444,000) or $(0.36) loss per share, compared to a net loss available to common stockholders of $(188,000) or $(0.15) loss per share in the same quarter a year ago.
• At January 31, 2017, cash, cash equivalents and restricted cash totaled $3.1 million compared to $4.1 million at October 31, 2016.

Richard K. Coleman, Jr., president and CEO, said: “The hearing before the Federal Circuit on March 7, 2017 concludes the appeals phase of our ‘972 litigation. We look forward to a timely and favorable decision that permits us to continue our efforts to compel the defendants in our cases to pay for the use of Crossroads’ technology. The non-‘972 sales efforts are ongoing as the company seeks to maximize shareholder value.”