UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

Date of report (Date of earliest event reported) March 8, 2013

 

Crossroads Systems, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

(State or Other Jurisdiction of Incorporation)

 

Delaware 001-15331 74-2846643
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

 

11000 North Mo-Pac Expressway

Austin, Texas

78759
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code (512) 349-0300

 

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

 

Item 2.05 Costs Associated with Exit or Disposal Activities.

 

On March 8, 2013, Crossroads Systems, Inc. (the “Company”) instituted a reduction in force. The Company’s workforce was reduced by 30 employees, reducing total headcount to 99. The reduction was primarily designed to reduce operating expenses, conserve cash resources, align ongoing expenses with the Company’s business and position the Company for future growth. In fiscal year 2012, the Company introduced its Crossroads StrongBox® product, a network attached storage solution based on tape for long-term archive data. The reduction comes as the development of StrongBox enters its final stages. More than 85 percent of the reduction is within research and development. Expected cost savings are approximately $5 million annually.

 

As a result of the reduction, the Company estimates that it will record an aggregate restructuring charge of approximately $315,000. In the second fiscal quarter of 2013, approximately $100,000 in cash expenditures will be made for personnel-related expenses related to payout of accrued vacation time to terminated employees. The remaining amount of $215,000 may be paid for severance to terminated employees in the second fiscal quarter of 2013 or in a future period.

 

This Current Report on Form 8-K includes forward-looking statements that relate to the business and future events or future performance of the Company and involve known and unknown risks, uncertainties and other factors that may cause its actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, “designed,” "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "will," "would," "could," and similar expressions or phrases identify forward-looking statements. Forward-looking statements include, but are not limited to, statements about the Company’s ability to implement its business strategy, including the transition from a hardware storage company to a software solutions and services provider, its ability to expand its distribution channels, its ability to maintain or broaden relationships with existing distribution channels and strategic alliances and develop new industry relationships, the performance of third parties in its distribution channels and of its strategic alliances, uncertainties relating to product development and commercialization, the ability to obtain, maintain or protect patent and other proprietary intellectual property rights, technological change in its industry, market acceptance of its products and services, future capital requirements, regulatory actions or delays, competition in general and other factors that may cause actual results to be materially different from those described herein. Forward-looking statements in this Current Report on Form 8-K are based on management's beliefs and opinions at the time the statements are made. The Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

 

 
 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Date: March 14, 2013 CROSSROADS SYSTEMS, INC.
   
  By:  /s/ Jennifer Crane
    Jennifer Crane
Chief Financial Officer