FalconStor Software Announces First Quarter 2022 Results

FalconStor Software Announces First Quarter 2022 Results

New Hybrid Cloud Reseller Relationship with IBM and Continued Implementation of a Managed Services Provider

  • Developed a new strategic partnership with IBM, creating new joint solutions that provide hybrid cloud data migration, backup and recovery for IBM Power Virtual Server Cloud (IBM Power VS) customers and MSPs, to be resold through IBM Cloud sales and partner channels.

  • Four new MSP Partners have been added for StorSafe Secure Backup as a Service, while existing MSP Partners have expanded their business to protect new customers and systems in line with FalconStor’s strategic shift to serve the MSP community.

Austin, TX May 11, 2022–(BUSINESS WIRE)–FalconStor Software, Inc. (OTCQB: FALC), a trusted data protection leader modernizing disaster recovery and backup for the hybrid cloud world, today announced financial results for the first quarter of 2022 ending March 31st. , 2022.

“Our strategic move to regular revenue-driven hybrid cloud data protection solutions was a significant step forward this quarter as we actively worked to strengthen our important relationship with IBM through resellers,” said Todd Brooks, CEO of FalconStor. “Advancing IBM’s cloud computing has been a centerpiece of its corporate strategy, as highlighted in its first quarter 2022 results. As we announced earlier today, businesses can now leverage new joint hybrid cloud solutions from FalconStor and IBM. These solutions are especially important for tens of thousands of companies around the world that use IBM i environments, as they now have the ability to securely backup and restore in the cloud, and migrate their IBM i workloads to IBM Power VS Cloud with secure backup. and restoration on a permanent basis. the basis.

“Despite the importance of this step forward in our efforts to reinvent FalconStor, our active focus on advancing our mission-critical hybrid cloud relationship and our efforts to reorganize our sales team accordingly have negatively impacted our legacy local extensions and legacy local customer acquisition revenue. during the quarter. We do not view our poor first-quarter legacy results as a signal of an accelerating decline in legacy going forward,” Brooks said. “In fact, the outdated regular revenue renewal rate was 86% and ARR increased 4% year-over-year during the quarter. As we continue to reinvent FalconStor, we must simultaneously focus on driving new strategic growth in hybrid cloud ARR and maintaining a trusted legacy. local income base.

Financial results for the first quarter of 2022

  • Annual Recurring Income (ARR): 4% annual growth

  • End of cash: $3.4 million compared to $2.0 million in the first quarter of fiscal 2021.

  • Total income: $2.0 million compared to $3.8 million in the first quarter of fiscal 2021.

  • Total income value: $0.4 million compared to $0.6 million in the first quarter of fiscal 2021.

  • Operating expenses: $2.7 million, up from $3.2 million in the first quarter of fiscal 2021.

  • Net income (loss) under GAAP: (1.1) million US dollars compared to 0.4 million US dollars in the first quarter of fiscal year 2021.

Management

Based on the results of the first quarter of 2022, we lower our full-year forecast as follows:

Guide 2022

Management (in millions of dollars)

Short

High

Total profit

13.0

14.0

Adjusted EBITDA*

2.0

2.7

%

sixteen%

nineteen%

Net profit

0.8

1.4

%

6%

ten%

Rule 40 (Revenue Growth, % + Adjusted EBITDA, %)

7

eighteen

*Adjusted EBITDA includes non-operating and other expenses and income.

Click this link to view the attached financial charts.

Conference calls and webcasts

WHO: Todd Brooks, CEO of FalconStor, and Vincent Sita, CFO of FalconStor.

WHEN: Wednesday, May 11, 2022 at 4:00 pm CT; 5:00 pm ET

To register for our income call, please click on the following link:

FALCONSTOR FIRST QUARTER 2022 FINANCIAL TELECONFERENCE AND PRESENTATION

Alternatively, you can copy and paste the following link into your web browser to register:

https://register.gotowebinar.com/register/4946665852509096204

Group call:
Please type the following if you would like to interact and ask questions to the FalconStor hosts:
Toll Free: 877-568-4108
Access code: 399-172-649

Non-GAAP financial ratios

Non-GAAP financial ratios used in this press release are not prepared in accordance with generally accepted accounting principles and may differ from non-GAAP financial ratios used by other companies. The Company’s management uses these non-GAAP financial ratios in making operational decisions as they provide significant additional information about the Company’s performance. In addition, these non-GAAP financial ratios facilitate management’s internal comparison with the Company’s historical performance and comparison with the performance of competitors. We have included these non-GAAP financial measures (which should be seen as an addition to, not a replacement for, their GAAP comparables) in this press release because we believe they are useful to investors by providing more transparency to additional information. used by management in making financial and operational decisions. The non-GAAP financial performance excludes (i) restructuring costs, (ii) the impact of our redeemable Series A convertible preferred stock, and (iii) non-cash share-based compensation payments and any potential tax implications. For a reconciliation of our GAAP and non-GAAP financial results, please refer to our reconciliation of GAAP to Non-GAAP financial results presented in this issue.

About FalconStor software

FalconStor is a recognized leader in data protection software that modernizes disaster recovery and backup operations for the hybrid cloud world. The company enables enterprise customers and managed service providers to secure, migrate and protect their data while reducing data storage and long-term storage costs by up to 95%. More than 1,000 organizations and managed service providers around the world use FalconStor as the foundation for their future cloud data protection. Our products are offered and supported by a worldwide network of leading managed service providers, system integrators, resellers and original equipment manufacturers.

FalconStor and FalconStor Software are trademarks or registered trademarks of FalconStor Software, Inc. in the USA and other countries. All other company and product names contained herein may be trademarks of their respective owners.

Links to websites or pages controlled by parties other than FalconStor are provided for the reader’s convenience and information only. FalconStor does not include in this release information found through these links, and FalconStor does not represent or warrant that any information found through these links is complete or accurate. The reader uses the information obtained through these links at his own risk.

View original version on businesswire.com: https://www.businesswire.com/news/home/20220511005312/en/

Contacts

Software FalconStor, Inc.
Vincent Sita
Chief Financial Officer
vincent.sita@falconstor.com
InvestorRelations@falconstor.com

CONTACT US WORLDWIDE

Company headquarters
501 Congress Avenue
Suite 150
Austin, TX 78701
Tel: +1 631 777 5188
salesinfo@falconstor.com

Headquarters in Europe
GERMANY
Landsbergerstrasse 302
80687 Munich, Germany
salesemea@falconstor.com

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