FalconStor Software Announces Fourth Quarter and Fiscal Year 2020 Results
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Strong Net Income, New Customer Sales, and New Product Expansion
- 26 percent increase in new customer bookings for fiscal year 2020 over fiscal year 2019
- $1.8 million in fiscal year 2020 GAAP operating income compared to $(0.7) million in fiscal year 2019
- 88 percent gross margin in fiscal year 2020 compared to 82 percent in fiscal year 2019
AUSTIN, Texas--(BUSINESS WIRE)-- FalconStor Software, Inc. (OTCQB: FALC) today announced financial results for its fourth quarter and fiscal year 2020, which ended on December 31, 2020.
“We continue to make good progress against our strategic plans to reinvent FalconStor, enhance the value we deliver to our customers, and innovate within the cloud-based data protection market,” said Todd Brooks, CEO FalconStor. “While our revenue in the fourth quarter of fiscal year 2020 decreased year-over-year by 10 percent and did not repeat the 11.7 percent year-over-year increase we delivered in the third quarter of 2020, we remained profitable and ended fiscal year 2020 with $1.8 million in GAAP operating income. We believe we have created a scalable foundation from which to build. Over the next year, we expect our year-over-year revenue growth to become more stable as our sales pipeline becomes more predictable, and our shift to subscription revenue continues. Our third quarter performance and new customer bookings in fiscal year 2020, which increased year-over-year by 26 percent, are encouraging signals.”
“As we move forward, we will continue our maniacal focus in our core mission to modernize backup and archival for the multi-cloud world with our innovative, patent-pending solution, StorSafeTM, which enables our enterprise customers to more efficiently exploit public-cloud data storage and reduce associated costs, while improving data portability, accessibility, and security – including ransomware protection,” added Brooks. “Movement to the cloud can be inhibited by many factors, but dealing with the complexity of legacy environments and the costs of data storage in the cloud are two areas where we provide differentiated capability built over many years of customer engagement and innovation. We believe for larger enterprise clients that this represents a significant portion of the available market.”
Fiscal Year 2020 Financial Results
- New Customer Bookings: $3.1 million, compared to $2.4 million in fiscal year 2019
- Total Revenue: $14.8 million, compared to $16.5 million in fiscal year 2019
- Total Cost of Revenue: $1.8 million, compared to $2.9 million in fiscal year 2019
- Total Operating Expenses: $11.1 million, compared to $14.3 million in fiscal year 2019
- GAAP Operating Income (loss): $1.8 million, compared to $(0.7) million in fiscal year 2019
- Ending Cash: $1.9 million, compared to $1.5 million in fiscal year 2019
Fourth Quarter of Fiscal Year 2020 Financial Results
- Total Revenue: $3.7 million, compared to $4.1 million in the fourth quarter of 2019
- Total Cost of Revenue: $0.5 million, compared to $0.2 million in the fourth quarter of 2019
- Total Operating Expenses: $3.2 million, compared to $3.3 million in the fourth quarter of 2019
- GAAP Operating Income: $0.0 million, compared to $0.6 million in the fourth quarter of 2019
Fiscal Year 2020 Business Highlights
- Delivered the next-generation of our industry-leading long-term data retention and recovery technology in StorSafe, built with a bridge to all industry-leading public clouds for long-term archival optimization, including AWS, Microsoft Azure, IBM Cloud, and challenger Wasabi
- Continued to demonstrate large enterprise scalability, achieving a 20 petabyte deployment across four cross-border data centers for a large transportation and logistics company
- Collaborated with Hitachi Vantara to deliver a new hybrid cloud data protection architecture powered by StorSafe
- Expanded our integration with AWS archive storage services to expand cloud data storage optimization and lower the cost of long-term data retention, including S3 Glacier and S3 Glacier Deep Archive tiers
- Accelerated replacements of end-of-life IBM ProtecTIER installations with StorSafe
- Delivered multi-tenant capabilities to enable managed service providers to better serve their clients. A prime example is Blue Chip, a leading IBM-focused UK MSP, which now counts over 300 customers and 70 petabytes of data under management running on Blue Chip Backup Cloud, powered by FalconStor
Conference Call and Webcast Information
WHO: Todd Brooks, Chief Executive Officer, FalconStor Brad Wolfe, Chief Financial Officer, FalconStor
WHEN: Wednesday, March 10, 2021 4:00 P.M. CDT
To register for our earnings call, please click the following link:
As an alternative, you can copy and paste the following link into your web browser to register:
Please dial the following if you would like to interact with and ask questions to FalconStor’s hosts:
Toll Free: 1-866-901-6455
Access Code: 314-782-185
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. The non-GAAP financial measures exclude (i) restructuring costs, (ii) effects of our Series A redeemable convertible preferred stock, and (iii) non-cash stock-based compensation charges and any potential tax effects. For a reconciliation of our GAAP and non-GAAP financial results, please refer to our Non-GAAP Operating Data GAAP Reconciliation, presented in this release.
About FalconStor Software
FalconStor (OTCQB: FALC) is a data protection leader that enables enterprises to modernize their data backup and archival operations across data centers and public clouds, delivering increased data security and providing the fastest recovery from ransomware attacks while driving down costs by up to 90 percent. A proven technology leader with more than 40 patents, FalconStor has over an exabyte of data under management and is trusted by more than 1,000 enterprise customers and an ecosystem of managed service providers and resellers worldwide. To learn more, visit www.falconstor.com and stay connected with us on YouTube, Twitter, and LinkedIn.
FalconStor and FalconStor Software are trademarks or registered trademarks of FalconStor Software, Inc., in the U.S. and other countries. All other company and product names contained herein may be trademarks of their respective holders.
Links to websites or pages controlled by parties other than FalconStor are provided for the reader's convenience and information only. FalconStor does not incorporate into this release the information found at those links nor does FalconStor represent or warrant that any information found at those links is complete or accurate. Use of information obtained by following these links is at the reader's own risk.
For more information, contact:
FalconStor Software, Inc.
Chief Financial Officer
Source: FalconStor Software, Inc.
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