Attached files
| file | filename |
|---|---|
| 8-K - FALCONSTOR SOFTWARE INC | form8k04673_01142010.htm |
Exhibit 99.1
|
Contact:
|
Joanne
Ferrara, Investor Relations
|
|
631-773-5813
|
|
|
joanne.ferrara@falconstor.com
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FalconStor
Software Provides Preliminary
Fourth
Quarter and Full Year Financial Results
MELVILLE,
N.Y., January 14, 2010—FalconStor Software, Inc. (NASDAQ: FALC), the provider of
TOTALLY Open™ data
protection solutions, today announced preliminary financial results for its
fourth quarter and full year ended December 31, 2009. Based on
preliminary financial data, the Company expects fourth quarter revenue to be in
the range of $21.5 to $22.0 million, and non-GAAP net loss per share to be
between $0.02 and $0.03 per share. Full year revenue is expected to
be in the range of $88.5 to $89.0 million, and non-GAAP earnings per share is
expected to be $0.05 to $0.06, compared with its previous projection of $96
million in revenue and non-GAAP earnings of $0.18 per share. Non-GAAP
results exclude the effects of stock-based compensation expense net of the
related income taxes. The Company advises investors not to continue to rely on
any other aspects of its previously issued financial guidance for
2009.
The
revenue shortfall in 2009 was mainly the result of lower than expected software
license revenue from OEMs. On a year over year basis, gross software
license revenue from OEMs decreased by approximately 24%, or $6.7
million. Three OEMs were responsible for most of this
shortfall. During the fourth quarter of 2009, Hewlett Packard
announced it was acquiring 3Com, the parent of H3C, one of the Company’s
OEMs. The change of ownership caused a change in H3C’s historical
licensing practices that resulted in revenue from H3C that was over $2 million
lower in Q4 on a year over year basis. The ongoing delay of the
proposed merger of Sun Microsystems, another of the Company’s OEMs, into Oracle,
resulted in a shortfall in projected revenue from Sun. Revenues from
EMC, our largest customer, were also below our expectations.
“Although
we were disappointed with the revenue shortfall from our OEMs, we were pleased
in the growth of our non-OEM business,” said ReiJane Huai, Chairman and Chief
Executive Officer of FalconStor. “We have begun to see the positive
results of our investments in nurturing the non-OEM business. In
2009, our non-OEM gross software license revenue increased 15% year over
year. We expect continuing growth of our non-OEM business into 2010
and beyond by leveraging our competitive product portfolio, credible end-user
references and committed channel partners on the worldwide basis.”
The
Company will release final results for the fourth quarter and full year on Feb.
4, 2010 and will host a conference call to discuss its final financial results
on Thursday, Feb. 4, 2010 at 4:30 p.m. EST. To participate in the conference
call, please dial:
Toll
Free: 1.877.941.8631
International:
+1.480.629.9820
To view
the presentation, please copy and paste the following link into your browser and
register for this meeting. Once you have registered for the meeting,
you will receive an email message confirming your registration.
https://falconstor.webex.com/falconstor/j.php?ED=131600252&RG=1&UID
Meeting:
FalconStor Q4 2009 Earnings
Meeting
password: q4numbers
Meeting
Number: 488 522 512
If you
are unable to register via the Internet, please contact Joanne Ferrara, Investor
Relations at 631-773-5813 or joanne.ferrara@falconstor.com.
A
conference call replay is scheduled to be available beginning Feb. 4 at 6:30
p.m. EST through 11:59 p.m. EST on Feb. 9. To listen to the replay of the call,
dial toll free: 1.800.406.7325 or International:
+1.303.590.3030, passcode: 4202073, or visit our website at www.falconstor.com/investors.asp.
Non-GAAP
Financial Measures
The
non-GAAP financial measures used in this press release are not prepared in
accordance with generally accepted accounting principles and may be different
from non-GAAP financial measures used by other companies. The
Company’s management refers to these non-GAAP financial measures in making
operating decisions because they provide meaningful supplemental information
regarding the Company’s operating performance. In addition, these
non-GAAP financial measures facilitate management’s internal comparisons to the
Company’s historical operating results and comparisons to competitors’ operating
results. We include these non-GAAP financial measures (which should
be viewed as a supplement to, and not a substitute for, their comparable GAAP
measures) in this press release because we believe they are useful to investors
in allowing for greater transparency into the supplemental information used by
management in its financial and operational decision-making.
About
FalconStor
FalconStor
Software, Inc. (NASDAQ: FALC) is the market leader in disk-based data
protection. FalconStor delivers proven, comprehensive data protection
solutions that facilitate the continuous availability of business-critical data
with speed, integrity, and simplicity. The Company’s TOTALLY Open™
technology solutions, built upon the award-winning IPStor®
platform, include the industry leading Virtual Tape Library
(VTL) with deduplication, Continuous Data Protector
(CDP), File-interface Deduplication
System (FDS), and Network Storage Server
(NSS), each enabled with WAN-optimized replication for disaster recovery
and remote office protection. FalconStor products are available from major OEMs
and solution providers including 3Com, Acer, COPAN Systems, Data Direct
Networks, Dynamic Solutions
International, EMC, Pillar Data Systems, Spectra Logic, and Sun and are
deployed by thousands of customers worldwide, from small businesses to Fortune
1000 enterprises.
FalconStor
is headquartered in Melville, N.Y., with offices throughout Europe and the Asia
Pacific region. For more information, visit www.falconstor.com or
call 1-866-NOW-FALC (1-866-669-3252).
###
This
press release includes forward-looking statements that involve risk and
uncertainties that could cause actual results to differ materially from the
forward-looking statements. These risks and uncertainties include: delays in
product development; market acceptance of FalconStor’s products and services;
technological change in the storage and networking industries; competition in
the network storage software market; the potential failure of FalconStor’s OEM
partners to introduce or to market products incorporating FalconStor’s products;
intellectual property issues; and other risk factors discussed in FalconStor’s
reports on Forms 10-K, 10-Q and other reports filed with the Securities and
Exchange Commission.
FalconStor, FalconStor Software, and
IPStor are registered trademarks, and TOTALLY Open is a trademark of FalconStor
Software, Inc. in the US and other countries. All other company and
product names contained herein may be trademarks of their respective
holders.