Crossroads Reports Fourth Quarter, Fiscal Year-End Results; Broader Revenue Base, Process Improvements Drive Fourth Quarter; Annual Revenue Grows 75 Percent.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers AUSTIN Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas--(BUSINESS WIRE)--Nov. 30, 2000 Crossroads Systems Inc. (Nasdaq:CRDS CRDS Contribution pour Le Remboursement de la Dette Sociale (French: Social Debt Repayment Contribution) CRDS Cavity Ring-Down Spectroscopy CRDS Community Rehabilitation and Disability Studies ), a leading provider of connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. for storage networking solutions, today announced its fourth quarter and fiscal year 2000 results, for the period ending Oct. 31, 2000. Expanded sales coverage, process improvements and an enhanced commitment to customer satisfaction and product quality produced a broader revenue base that fueled the company's improved performance. Total revenues for the fourth quarter of fiscal 2000 grew 18 percent to $8.4 million over $7.1 million reported for the fourth quarter of fiscal 1999, and 75 percent over $4.8 million reported for the third quarter of fiscal 2000. Excluding amortization of goodwill and stock-based compensation, the company reported a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss of $4.8 million, or $0.18 per share, for the fourth quarter of fiscal 2000. This compares with a pro forma net loss of $870,000, or $0.04 per share, for the comparable quarter in fiscal 1999, and a pro forma net loss of $8.0 million, or $0.30 per share, for the third quarter of fiscal 2000. Actual net loss for the fourth quarter of fiscal 2000 was $10.6 million, or $0.39 per share. This compares with a net loss of $1.5 million, or $0.07 per share, for the fourth quarter of fiscal 1999, and a net loss of $17.8 million, or $0.67 per share, for the third quarter of fiscal 2000. Total revenues for fiscal 2000 rose 75 percent to $33.0 million over $18.9 million reported for fiscal 1999. Excluding amortization of goodwill and stock-based compensation, Crossroads reported a pro forma net loss of $14.5 million, or $0.55 per share, compared with a pro forma net loss of $4.2 million, or $0.20 per share, for fiscal 1999. Actual net loss was $51.0 million, or $1.93 per share, compared with a net loss attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to common stock of $5.4 million, or $0.26, for fiscal 1999. Per share amounts for fiscal 1999 assume conversion of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". using the if-converted method. "We are pleased with our improved fourth quarter and our overall fiscal 2000 performance," said Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. R. Smith, Crossroads chairman and chief executive officer. "After taking a hard look at our business last quarter, we implemented an extensive quality management program that resulted in numerous process improvements throughout our business and drove a more consistent revenue pattern. In addition, we expanded our sales coverage to better serve our growing customer base. Going forward, we are focused on solidifying so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our core business, leveraging our technology and investing in high-growth areas to drive growth and profitability." Recent and full-year highlights include: -- Financial Performance -- Crossroads grew total revenue 75 percent for the fourth quarter of fiscal 2000 over the third quarter of fiscal 2000 and 75 percent for fiscal 2000 over fiscal 1999. -- At the same time, the company broadened its revenue base. Crossroads began fiscal 2000 with approximately 75 percent of its revenue generated from two customers. The company ended fiscal 2000 with six customers representing approximately 75 percent of the company's revenue. -- Crossroads significantly improved the number of Days Sales Outstanding from 94 in the third quarter of fiscal 2000 to 62 in the fourth quarter of fiscal 2000, improved inventory turns and ended the quarter with $60.0 million in cash and short-term investments. This compares with $80.8 million in cash and short-term investments at the end of fiscal 1999. -- Excluding amortization of stock-based compensation, Crossroads reported a gross margin of 46.4 percent for the fourth quarter of fiscal 2000 and a gross margin of 43.1 percent for fiscal 2000. -- Operational Execution -- During fiscal 2000, the company acquired and integrated Polaris Communications in Oregon, giving Crossroads S/390 connectivity to approximately 70 percent of the world's stored data. -- Also during the year, Crossroads strengthened its management team with a new president and chief operating officer, Larry Sanders, the former president and chief executive officer of Fujitsu Computer Products of America. -- Crossroads implemented SAP, its enterprise resource planning system, on June 1, well ahead of schedule. -- Crossroads named a vice president of quality and operations, launched its total quality management program, and earned ISO 9002 certification. -- Technology Advances -- In August, Crossroads was the first to demonstrate server-free backup operating with early InfiniBand technology. -- During the recent Fall Comdex, Crossroads launched its conXsan product line which interconnects storage systems regardless of the technology or location. The conXsan family includes the Crossroads 7100 Extended Storage Router that uses asynchronous transfer mode (ATM), or SAN-to-WAN, routing technology, enabling companies to share stored data across metropolitan areas or around the world. -- Also during Comdex, Crossroads and Compaq Computer Corporation jointly demonstrated storage-over-Internet Protocol (IP). The demonstration showed Crossroads' conXsan Gigabit Ethernet prototype supporting Compaq's Data Replication Manager. -- To date, Crossroads has five patents issued, two patents allowed, and 27 additional patents pending at the Patent and Trademark Office. This grew from one patent issued and 10 patents pending at the beginning of fiscal 2000. "The explosive explosive, substance that undergoes decomposition or combustion with great rapidity, evolving much heat and producing a large volume of gas. The reaction products fill a much greater volume than that occupied by the original material and exert an enormous pressure, growth of business critical data continues to drive the need for storage networking solutions that allow customers to manage and access their information at higher and higher speeds while maintaining the integrity of that data," Smith said. "We plan to be the company that offers solutions to link business with information regardless of technology or location. Today, we are a stronger company still in the right markets and focused on the right strategy with a team executing to build long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value." NOTE: Crossroads will hold a conference call (712/271-0979; password A secret word or code used to serve as a security measure against unauthorized access to data. It is normally managed by the operating system or DBMS. However, the computer can only verify the legitimacy of the password, not the legitimacy of the user. See NCSC. : Crossroads) and simultaneous Webcast (www.crossroads.com) at 3:30 p.m. (CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. ) today. About Crossroads Systems Inc. Headquartered in Austin, Texas, Crossroads Systems (Nasdaq:CRDS) is a leading provider of connectivity for storage networking solutions. Crossroads' solutions enable key Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , Intranet and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. applications. By using Crossroads, customers can more effectively and efficiently store, manage and ensure the integrity and availability of their data in the Internet economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . Crossroads' products are in solutions from ADIC, ATL (Active Template Library) A set of software routines from Microsoft that provide the basic framework for creating ActiveX and COM objects. Stemming from the standard template library (STL) that comes with C++ compilers, ATL includes an object wizard that sets up , Compaq (Compaq Computer Corporation, Houston, TX, www.compaq.com) Compaq was the leading PC manufacturer when it was acquired by HP in 2002. Founded in 1982 by Rod Canion, Jim Harris and Bill Murto, one year later the company shipped 53,000 PC-compatible COMPAQ Portables, resulting in $111 , Dell, Fujitsu-Siemens, Groupe Bull Groupe Bull (also known as Bull Computer or simply Bull) is a French computer company based in Les Clayes-sous-Bois, outside Paris. The company has also been known at various times as Bull General Electric, Honeywell Bull, CII Honeywell Bull , Hewlett-Packard See HP. Hewlett-Packard - (HP) Hewlett-Packard designs, manufactures and services electronic products and systems for measurement, computation and communications. The company's products and services are used in industry, business, engineering, science, medicine and , Hitachi Data Systems See HDS. , IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , McDATA, StorageTek (Storage Technology Corporation, Louisville, CO) Acquired by Sun in 2005, StorageTek had been a leading provider of disk and tape storage solutions and services that was founded in 1969. , Unisys, ACAL ACAL Asociación de Archiveros de Castilla Y León (Castille and Leon, Spain) ACAL Academia de Ciencias de América Latina (Spanish: Academy of Sciences of Latin America, Venezuela) , Bell Micro, Cranel, Datalink and Tech Data. Employment opportunities and more information about Crossroads Systems are available at www.crossroads.com or by calling 800/643-7148. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: the quarterly fluctuations of Crossroads' operating results and Crossroads' inability to accurately predict revenues and budget for expenses for future periods; the extent of Crossroads' future operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and negative cash flow; the company's ability to maintain its operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ; the impact on Crossroads' results or operations due to changes in the Securities and Exchange Commission's accounting standards, including the implementation of SAB SAB Spontaneous abortion. See Abortion. 101 with respect to revenue recognition; the dependence of Crossroads' business on the storage area network market which is evolving and unpredictable; the possibility that the pending shareholder class action lawsuits class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax could result in an adverse outcome to the company; Crossroads' ability to develop new and enhanced products that achieve market acceptance; the effect of competition; the effect of undetected software or hardware errors, which may affect the company's results or reduce demand for Crossroads' products in the long term; Crossroads' inability to protect its intellectual property rights, including any adverse outcome in the company's pending patent litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with certain of its competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. ; the continuation of Crossroads' successful relationships with its limited number of OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers, including its ability to replace revenue from Compaq Computer Corporation (company) Compaq Computer Corporation - The largest US manufacturer and vendor of IBM PC compatible personal computers and servers. Compaq was started in 1982 by three ex-Texas Instruments employees. Quarterly sales $2499M, profits $210M (Aug 1994). http://compaq.com/. ; Crossroads' ability to retain and recruit key personnel to manage its business successfully; Crossroads' ability to successfully achieve the benefits of the acquisition of Polaris Polaris (pōlâr`ĭs) or North Star, star nearest the north celestial pole (see equatorial coordinate system). Communications and any subsequent acquisition or strategic relationship; and that Crossroads' stock price could be volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. regardless of Crossroads' actual financial performance and other factors detailed in Crossroads' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Reports on 10-Q.
Crossroads Systems Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(In Thousands)
ASSETS
July 31, October 31,
2000 2000
------------ ------------
Current assets:
Cash and cash equivalents $ 56,490 $ 42,447
Short-term investments 7,590 17,591
------------ ------------
Total cash, cash equivalents
and short-term investments 64,080 60,038
Accounts receivable, net 4,866 5,590
Inventories 5,314 3,918
Prepaids and other current assets 2,412 2,037
------------ ------------
Total current assets 76,672 71,583
Notes receivable from related
party, net 150 159
Property and equipment, net 8,722 10,062
Intangibles, net 39,282 35,686
Other assets 756 558
------------ ------------
Total assets $ 125,582 $ 118,048
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,542 $ 4,852
Accrued expenses 1,939 2,933
Accrued warranty costs 332 414
Deferred revenue 640 1,097
------------ ------------
Total current liabilities 8,453 9,296
Stockholders' equity:
Common stock 27 27
Additional paid-in capital 183,315 183,391
Deferred stock-based compensation (11,982) (9,734)
Notes receivable from stockholders (246) (249)
Accumulated deficit (53,804) (64,448)
Treasury stock at cost (181) (235)
------------ ------------
Total stockholders' equity 117,129 108,752
------------ ------------
Total liabilities and
stockholders' equity $ 125,582 $ 118,048
============ ============
Crossroads Systems Inc. and Subsidiaries
Consolidated Statement of Operations
(Unaudited)
(In Thousands, Except Share and Per Share Data)
Three Months Ended Fiscal Years Ended
October 31, October 31,
---------------------- ----------------------
1999 2000 1999 2000
---------- ---------- ---------- ----------
Revenue:
Product revenue $ 7,131 $ 8,176 $ 18,859 $ 32,486
Other revenue - 177 65 562
---------- ---------- ---------- ----------
Total revenue 7,131 8,353 18,924 33,048
Cost of revenue(1) 4,068 4,527 11,079 19,104
---------- ---------- ---------- ----------
Gross profit 3,063 3,826 7,845 13,944
---------- ---------- ---------- ----------
Operating expenses(1):
Sales and marketing 1,816 3,124 4,781 16,007
Research and
development 1,897 3,821 5,551 13,143
General and
administrative 1,121 4,976 3,017 31,242
Amortization of
intangibles - 3,596 - 8,808
Stock-based
compensation(1) - - - -
---------- ---------- ---------- ----------
Total operating
expenses 4,834 15,517 13,349 69,200
---------- ---------- ---------- ----------
Loss from operations (1,771) (11,691) (5,504) (55,256)
Other income, net 229 1,047 319 4,229
---------- ---------- ---------- ----------
Net loss (1,542) (10,644) (5,185) (51,027)
Accretion on redeemable
convertible preferred
stock - - (247) -
---------- ---------- ---------- ----------
Net loss attributable to
common stock $ (1,542) $ (10,644) $ (5,432) $ (51,027)
========== ========== ========== ==========
Basic and diluted net
loss per share $ (0.17) $ (0.39) $ (0.74) $ (1.93)
========== ========== ========== ==========
Shares used in computing
basic and diluted net
loss per share 9,056,274 26,958,395 7,377,984 26,413,796
========== ========== ========== ==========
-------------------------------------
(1) During the fiscal year ended October 31, 2000, the Company
allocated stock-based compensation to specific line items within
the statement of operations based on the classification of the
employees who received the benefit. Stock-based compensation for
prior periods has been reclassified to conform to the October 31,
2000 presentation. Stock-based compensation for the periods
indicated was allocated as follows:
Three Months Ended Fiscal Years Ended
October 31, October 31,
---------------------- ----------------------
1999 2000 1999 2000
---------- ---------- ---------- ----------
Cost of revenue $ 87 $ 46 $ 133 $ 288
Sales and marketing 198 69 372 4,373
Research and development 164 84 280 528
General and
administrative 223 2,084 420 22,501
---------- ---------- ---------- ----------
Total stock-based
compensation $ 672 $ 2,283 $ 1,205 $ 27,690
========== ========== ========== ==========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion