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FalconStor Software Announces First Quarter of 2022 Results
FalconStor Software Announces First Quarter of 2022 Results.
About this update from Falconstor Software, Inc.
[{"type":"text","content":"\nFalconStor Software, Inc. (OTCQB: FALC), a trusted data protection leader modernizing disaster recovery and backup for the hybrid cloud world, today announced financial results for its first quarter 2022, which ended on March 31, 2022.\n\n“Our strategic shift to recurring revenue-based hybrid cloud data protection solutions took a material step forward in the quarter as we worked aggressively to secure an important reseller relationship with IBM,” said Todd Brooks, FalconStor CEO. “IBM’s cloud push has been a centerpiece of its corporate strategy, as highlighted in its first quarter 2022 results. As we announced earlier today, enterprises can now leverage new joint hybrid cloud solutions from FalconStor and IBM. These solutions are especially important to the tens of thousands of companies around the globe that leverage IBM i environments, as they now have the ability to securely backup and restore to the cloud as well as migrate their IBM i workloads to IBM Power VS Cloud with secure backup and recovery on an on-going basis.\n\n“Despite the importance of this step forward in our efforts to reinvent FalconStor, our aggressive focus on advancing critical hybrid cloud relationships and our efforts to realign our sales team accordingly negatively impacted our legacy on-premises expansions and legacy on-premises new customer acquisition revenue during the quarter. We don’t view our poor legacy results in Q1 as being a signal of accelerated legacy decline in the future,\" stated Brooks. \"In fact, legacy recurring revenue renewal rates were 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 hybrid cloud ARR growth and maintaining a solid legacy on-premises revenue base.”\n\nFirst Quarter 2022 Financial Results\n\n\nAnnual Recurring Revenue (ARR): 4% year-over-year growth\n\n\nEnding Cash: $3.4 million, compared to $2.0 million in the first quarter of fiscal year 2021\n\n\nTotal Revenue: $2.0 million, compared to $3.8 million in the first quarter of fiscal year 2021\n\n\nTotal Cost of Revenue: $0.4 million, compared to $0.6 million in the first quarter of fiscal year 2021\n\n\nTotal Operating Expenses: $2.7 million, compared to $3.2 million in the first quarter of fiscal year 2021\n\n\nGAAP ...