Science & Technology
Science and Technology
Science and Technology
Fri, May 28, 2010
Thu, May 27, 2010 Crossroads Systems Reports Fiscal Second Quarter Financial Results
AUSTIN, TX--(Marketwire - May 27, 2010) - Crossroads Systems, Inc. (
Revenue totaled $5.0 million for Q2'10 compared to $2.7 million in the fiscal first quarter ended January 31, 2010 (Q1'10). Product revenue totaled $941,000 for Q2'10 compared to $1.1 million for Q1'10. Revenue from IP license, royalty and other totaled $4.1 million for Q2'10 compared to $1.6 million for Q1'10. Gross profit was $4.0 million, or 79 percent for Q2'10, compared to $2.5 million, or 91 percent for Q1'10. Net loss for Q2'10 was $393,000, or $0.01 cent loss per share, compared to a net loss of $2.1 million, or $0.07 cents loss per share in Q1'10.
For additional financial information, visit [ www.crossroads.com/InvestorRelations/ ].
About Crossroads Systems, Inc.
Headquartered in Austin, Texas, Crossroads Systems is a global leading provider of solutions to connect, protect, secure and restore data-at-rest. Crossroads (
Forward-Looking Statements
This release may include forward-looking statements. The words "believe," "expect," "intend," "plan," "project," "will" and similar phrases as they relate to Crossroads are intended to identify such forward-looking statements. These statements reflect the current views and assumptions of Crossroads and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.
©2010 Crossroads Systems, Inc. Crossroads and Crossroads Systems are registered trademarks of Crossroads Systems, Inc. All specifications are subject to change without notice.
CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In Thousands) October 31, April 30, 2009 2010 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 5,297 $ 6,568 Accounts receivable, net 5,124 2,452 Inventories, net 111 106 Prepaids and other current assets 423 299 ------------ ------------ Total current assets 10,955 9,425 Property and equipment, net 830 653 Intangible, net 1,502 972 Investment in Subsidiaries 940 940 Other assets 69 56 ------------ ------------ Total assets $ 14,296 $ 12,046 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,036 $ 1,073 Accrued expenses 1,877 1,436 Accrued warranty costs 18 19 Deferred revenue 199 307 Line of Credit 1,973 1,973 ------------ ------------ Total current liabilities 5,103 4,808 Long-term liabilities 59 105 Stockholders' equity 9,134 7,133 ------------ ------------ Total liabilities and stockholders' equity $ 14,296 $ 12,046 ============ ============ CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In Thousands, Except Share and Per Share Data) Three Months Ended Six Months Ended April 30, April 30, ====================== ====================== 2009 2010 2009 2010 ---------- ---------- ---------- ---------- Revenue: Product $ 1,159 $ 941 $ 2,721 $ 2,034 IP License, royalty and other 2,578 4,102 4,262 5,731 ---------- ---------- ---------- ---------- Total revenue 3,737 5,043 6,983 7,765 Cost of revenue: Product 124 138 408 221 IP License, royalty and other 448 930 817 1,102 ---------- ---------- ---------- ---------- Total cost of revenue 572 1,068 1,225 1,323 ---------- ---------- ---------- ---------- Gross profit 3,165 3,975 5,758 6,442 ---------- ---------- ---------- ---------- Operating expenses: Sales and marketing 1,453 1,301 3,017 2,558 Research and development 2,267 2,150 4,754 4,319 General and administrative 559 505 792 962 FAS 123R and stock based compensation 118 124 401 516 Business restructuring expense - - 217 - Amortization of intangibles 265 265 549 530 ---------- ---------- ---------- ---------- Total operating expenses 4,662 4,345 9,730 8,885 ---------- ---------- ---------- ---------- Income (Loss) from operations (1,497) (370) (3,972) (2,443) Interest (expense) income (48) (23) (70) (47) ---------- ---------- ---------- ---------- Net Income (Loss) $ (1,545) $ (393) $ (4,042) $ (2,490) ========== ========== ========== ========== Basic net gain (loss) per share (0.05) (0.01) (0.14) (0.08) Shares used in computing: Basic net gain (loss) per share 28,966,434 30,113,166 28,877,287 29,697,117 ---------- ---------- ---------- ---------- CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Six Months Ended April 30, ------------------ 2009 2010 -------- -------- Cash flows from operating activities: Net loss $ (4,042) $ (2,490) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 456 311 Business restructuring expenses 217 - Amortization of intangibles 549 530 Loss on disposal of fixed assets - - Stock-based compensation and FAS 123R 402 516 Provision for doubtful accounts receivable 2 (14) Provision for excess and obsolete inventory 56 (6) Changes in assets and liabilities: Accounts receivable 1,776 2,679 Inventories 117 11 Prepaids and other current assets (7) 122 Accounts payable (499) 374 Accrued expenses and other (768) (383) Deferred revenue and other 11 119 -------- -------- Net cash provided by (used in) operating activities (1,730) 1,769 -------- -------- Cash flows from investing activities: Purchase of property and equipment (124) (163) -------- -------- Net cash used in investing activities (124) (163) -------- -------- Cash flows from financing activities: Proceeds from issuance of common stock 1 - -------- -------- Net cash provided by financing activities 1 - -------- -------- Effect of Exchange Rate on Cash 52 (335) Net increase (decrease) in cash and cash equivalents (1,801) 1,271 Cash and cash equivalents, beginning of period 7,086 5,297 -------- -------- Cash and cash equivalents, end of period $ 5,285 $ 6,568 ======== ========
