Crossroads Systems Reports Fiscal Second Quarter 2014 Financial Results

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Crossroads Systems, Inc. (NASDAQ: CRDS), a global provider of data archive solutions, reported financial results for its fiscal second quarter ended April 30, 2014.

Revenue for fiscal Q2 2014 was $2.3 million, a decrease of 16 percent from $2.7 million in the same quarter a year ago. The decrease is primarily attributable to a decrease in the company’s OEM SPHiNX business as well as revenue from an intellectual property licensee. Gross profit for fiscal Q2 2014 was $1.8 million, or 80 percent of total revenue, as compared to$1.9 million or 70 percent of total revenue in the same quarter a year ago.

Operating expenses for fiscal Q2 2014 totaled $3.6 million as compared to $5.8 million in the same period a year ago, a decrease of 37 percent, primarily due to the reduction in force in October 2013.

Net loss available to common stockholders for fiscal Q2 2014 totaled $(1.8) million or $(0.14) loss per share, compared to a net loss available to common stockholders of $(4.8) million or $(0.41) loss per share in the same quarter a year ago.

At April 30, 2014, cash and cash equivalents increased $2.7 million to $10.7 million from $8.0 million in the previous quarter. The Company completed a private placement of its common stock netting $4.3 million during the quarter and paid $865,000toward its Fortress debt.

Management Commentary
Richard K. Coleman, Jr., President and CEO at Crossroads Systems, said, “Despite the acceleration of the anticipated decline in our legacy product and recurring IP revenues, we’ve made great progress in positioning Crossroads for the future. StrongBox is poised for success in an expanding market and our future IP licensing potential presents us with exciting opportunities.”

About Crossroads Systems 
Crossroads Systems, Inc. (NASDAQ: CRDS) is a global provider of data archive solutions. Through the innovative use of new technologies, Crossroads delivers customer-driven solutions that enable proactive data security, advanced data archiving, optimized performance and significant cost-savings. Founded in 1996 and headquartered in Austin, TXCrossroads has been awarded more than 100 patents and has been honored with numerous industry awards for data archiving, storage and protection.

SOURCE Crossroads Systems