Crossroads Systems Reports Third Quarter Results
Crossroads Systems Inc. this week reported its results for the fiscal third quarter ended July 31, 2001, and announced a new agreement with Compaq Computer Corporation.
Under the agreement with Compaq, the two companies will develop a range of solutions for protecting data in networked storage environments with the first delivery in early 2002. "Our re-engagement with Compaq is a significant achievement for Crossroads," said Brian R. Smith, Crossroads chairman and chief executive officer. "It reaffirms our leadership position in SAN technology."
Total revenues for the third quarter of fiscal 2001 were $8.4 million compared with $10.2 million for the second quarter of fiscal 2001 and $4.8 million in the third quarter of fiscal 2000.
Pro forma net loss for the third quarter of fiscal 2001 was $7.1 million, or $0.26 per share. This excludes income of $15.0 million associated with the settlement of our patent litigation and certain non-cash charges totaling $28.7 million. These non-cash charges include stock-based compensation, amortization of intangible assets, and a $25.0 million write down of intangible assets. Pro forma net loss for the second quarter of fiscal 2001 was $5.9 million, or $0.21 per share, and a pro forma net loss for the third quarter of fiscal 2000 was $8.0 million, or $0.30 per share.
Actual net loss for the third quarter of fiscal 2001 was $20.8 million, or $0.75 per share. Actual net loss for the second quarter of fiscal 2001 was $11.6 million, or $0.42 per share, and actual net loss for the third quarter of fiscal 2000 was $17.8 million, or $0.67 per share.
"The continued economic slowdown and the related reduction in IT spending adversely affected our revenue during the third quarter and will likely do so through the remainder of our fiscal year," said Larry Sanders, Crossroads president and chief operating officer. "We believe that the Compaq win, combined with our recent expense actions and the $15 million patent litigation settlement, make us a stronger company going forward."