FALC - Earnings call transcript Q1 2020 | FalconStor Software, Inc.

everyone call. to you I I to thank also participate appreciate would today time our And All for that. Clark. your right. Thank in taking like

As our in implemented and carried we during initiatives we key given four XXXX, four in momentum we reviewed into call, earnings last XXXX. positive strategic we XXXX initiatives same created these the

cases growth storage growth over And believe regions creating and on where industry-leading we expanding our by our the archive innovations will demonstrated commercial flexible drive decade. and product to next these increasing consistent and long extensible are third, largest ability flow and Then most on to that our line are, investment operations. growth new, first, we driven use data by second Then retention generating the strategic term and win. continuity have customers. reinstatement cash positive business to focus sharpening replication then related in and which our on R&D products our or those we areas profitability finally operating cases data and are And our those important ensure focused consistent to focus commercial and to enterprise and delivering

XXXX. being three growth rate approximately Our a annual grow billion XX.X% to reported IDC through and at are by to be products at $XX.X factors. This sized driven at a pointed that's is market compounded by growth of predicted

and is of data in whether video the or various devices. the connected audio application amount traditional form an in by databases, technologies, generated digital documents, explosion Internet First, of digital email, that

ever expanding be And in regulatory cloud need of compliance. Second, to periods and dramatic the increase for data public then or data cloud. a they retain a data whether private lengthy options, traditional finally, in time located legal the storage center, ensure to

in driving the need data. of manage growth captured and dramatic cost and intelligently the data this This capacity for to securely effectively, enterprises stored is

In is fact, routine to by related archives. up managed of to XX% IDC, data enterprise directly according an to data the

to technology and archive allows or object cloud types as most the storage Our are the platform XX% available an storage data the is are of existing reduced content efficiency. while alternatives archive storage improved ensuring up and by met, IBM's or policies enterprise AWS, windows storage XX% leverage capacity procedures, for and stringent cloud data to Wasabi, HCP such

I am excited by customers. and to the complex our we business this FalconStor deliver that enterprise market value at

the of this elaborate initiatives, on strategic experienced. pandemic discuss we balance QX the have For financial a of COVID-XX we results key of and review that these detailed impacts provide will each call, four

we live. will Finally, phone question question. we to we would you for the like your questions call the open area panel to question, use we will All have And any line, if enter you open the when ask that the you lines ask webinar right. then and your you within to ask question on dialogue may

employees beginning past significant made go without spread. let's in XXXX The the been priority top prepared during So late can at improvements the to minds February worst-case commercially of from are FalconStor two that we top The the been has late of into disruption, XXXX. as to we that majority of pandemic ensuring work pandemic the allowed that's a global any we years internal a our distraction. operating which workforce survive our has as by its extend the have is impacted been home seen. discuss Certainly, COVID-XX thoughts our to impacts safety out our everyone

materially were of as results million However, by impacted in compared XXXX. million revenue the QX to quarter, declined to QX our $X.X $X.X XX% during

$XXX,XXX loss a addition, non-GAAP decreased a income in operating compared to to income XXXX. operating QX our QX non-GAAP of In of of $XXX,XXX

that the a delayed COVID-XX the delayed sales deal QX shift were quarter in as Deep for in and point demand being closings to opposed decrease insights to into revenue initiated renewals the QX both as in a the fundamental opportunities new just delay as returned FalconStor's have new including FalconStor of QX insight, and customers. the sales, of that closing into level, wins fact, this in XXXX products. new evidence several VTL a renewals concluded, normal further April to which were several with April we

the six COVID-XX. sales we globe produce with assuming to results, to impacts revenue continue will continue enterprises However, are challenges commercial to as the deal next their despite April months due positive own that our around

reduction cost our see say, total to in in to non-GAAP, operating $X.X XXXX QX should -- executed $X.X efforts for expenses I XXXX. XXXX, [sic that press of compared million Given of decreased we release] QX million

with cash the our the revenue for level reduced remainder challenges reduction. flow implemented million In by enable expense cash XXXX. rate aggressive COVID-XX, the QX plan in end year. at we continued an plan given $X for expense believe even commercial will run the by of FalconStor caused expense to to positive more reduces balance that are and We annual the XX% throughout or prepared XXXX, addition, of This the operate a control we developed of keep even uncertainty place

in Despite to we revenues have am global diligently they continue our how I and that of to proud and impacted XXXX. they continue our negatively quarters, during the next absolutely the momentum themselves maintain managed is how will work to assumption engaged that planning team gained few commercial

that results reinstatement April, QX. begin existing during and StorSafe been called Beyond installing with several our on retention feedback especially has product team customers product archive launched the term and encouraging. the newest also long will we Industry launch delivered in favorable the

about that. excited are we So

the XXXX, to and by for our balance will continue impacts So pandemic. caused the manage of any business proactively we COVID-XX

focus sharpened key to and initiatives delivery will our investments, of archive four guide term flow daily product efforts. continue cash R&D and commercial Our consistent growth, of profitability positive operations long targeted

products long and retention and enterprises replication. utilized service reinstatement the enterprise business key globe and managed then and by data archive two providers across term address Our continuity data driven areas of are protection,

Our software hardware, existing products our be cloud our that our agnostic, leverage data investments. of and giving which hardware means defined, maximum and sourced technology allows are solutions software customers to

Our advantage. protected, data. product into where leveraged our innovative not the world modern key cloud-based integration to and in portability, technologies customers sensibility our improve facilitate also enables the enterprise learning, dramatically is is intelligently drive competitive design modern of data only but and security their improved to sensibility This

and have tape VTL solution. archive we or Within retention traditionally FalconStor virtual term the reinstatement segment, long sold library our

we excited that next-generation long to term am have launched announce StorSafe. our product archive I called However,

enable on our archive will here their minute. We customers cover and these innovations portability while Both and a storage little accessibility. that operations bit costs, archive infrastructure deliver modernize data dramatically improving to products enterprise in reduce security, and archive more of their that

We innovations and these inventions management. have filed storage patents and on and we archive that believe storage and the can data challenges transform

business these as continuity replication NSS solution our data products driven Traditionally, within protection been segment, standalone continuous CDP customers have via our to our hardware objectives, are through storage FreeStor core storage our platform. products enable and advanced solution. investments available network or or together data These while time solutions be could Then enterprise the our recovery point achieve optimizing and virtualization. licensed storage superior recovery or products

continue to key segments will place these future. the for product foreseeable two within We focus our

the at let's of libraries early We just providers processes. to solution, we enterprises innovative library and So without one archive-related replace physical forced these and protection a their and associated core introduce software first were tape And underlying archive take emulate a to product tape bit the products cumbersome this detail. being for legacy our allowing enterprise of each XXXXs. to backup look data more virtual replace in introduced in software

to continually Our solution VTL We product be scalability. unmatched and and product on of meet in marketplace it the scalability exploitation. we usability, and to hybrid a new terms cloud the demands continues believe is performance evolve in solution leading

customers legacy emulation, leverage with archive change operations which enterprise tape public seamlessly also sophisticated to data complete more environment. solution. integrated to or are They able virtual into are archive our now data deduplication able advance and data cloud-based tape VTL, their physical archive private their our reliably security, minimal needed storage, With

our to the customers enterprise product dedicated industry. with the providing in highest performing VTL are We

solution our closest closest As than independent XX% performance subject on competitor be which to such, testing of our VTL our hardware cost has faster and one-third executed product required is the we can competitor. by is our demonstrated that that that

by reduced we shared redundant Beyond much by archive that customers also enable reduce benefit of to archive XX%. archive then allowing dramatically can be integrated required speed, storage By data the archived to them deduplication the capacity data as our data through engine. to processing archive needs data be their amount eliminating data, our from as

archive storing Our the the enterprise software to eliminating protection of subject significantly customers long hardware reduce of ever volume and lock-in. growing technology term mandates, data data while vendor our allows cost to

Moving arrays storage an to have StorSafe. installed limited datacenter. in choice data or within and their have Traditionally, forced on store been had physical to on enterprises tape internal archived

storage within archive archive long a and solution, storage array Our enables StorSafe, cost-effectively backup sophisticated our enterprises and options securely integration traditional VTL newest breaks provides scalable software term and data leverage to tape management of and cloud-based and legacy physical ultra-efficient environments. processes. most StorSafe these storage seamless wide emulation like innovative and product including and proven limitations enterprises'

advanced data deduplication technology. our In addition, includes StorSafe

However, archive to long standard archive technology entirely term new by innovative container and persistent takes leveraging long StorSafe enable storage. an to patent-pending optimization storage industry level term

relates data leverage. security changing Our and StorSafe improving game accessibility, data is solution especially multi-cloud it archive to portability, validation, integrity as and

efficient data of utilize confidently storage available As is storage access. enterprise to efficiently essentially spectrum and archive ensuring a customers options result, while our security environment, a any full data made archive to

designed long and mandated term optimization archive cost for storage legal We legally- compliance the redefined significantly long data term storage have and or next StorSafe accessibility decade. archive to and reduce

maintain disaster. In various archive data, of natural data by term long loss term to enterprises backups user or copies routinely to or short generated against protect applications data addition

the and way performed. implemented Our recovery replication are data and CDP technology reinvents

disc-based back a allows CDP that the to once-a-day backup most recover beyond protection cost-effective, and remote recent solution to Moving organizations data models, combines transaction. local into unified,

Microsoft, complex snapshot business protects agents Oracle, data enables and minutes journaling environments. CDP any reliable of performance other CDP even the bringing in and while applications customers in a delivers failure. for back data leading matter applications a time. instant and SAP at availability CDP for data continuous functions, and application-specific recover application stability ensuring point many business high Combining to business online recovery after most effectively

and Finally, expanding secure heterogeneous that challenge migration. a eliminates storage data scalable, ensuring adequate business enterprises storage storage virtualization data of of amount environments. continuity the and enables in capacity highly has is storage continual meet available provisioning lock-in disc fast NSS an and data storage. of to third-party and NSS the the designed in data solution a arrays, creates FalconStor managed enterprise. Supporting providing is boundaries ever by complex vendor organization NSS needs any existing available

data platforms complicated, Moving different between data can to time-consuming and business complex, disruptive operations. storage be

becomes Our to it and to data to core ones storage data mobility. to non-disruptive data a tiers. mandates. to well a requirements older allows NSS, provides storage simple respond With platforms in as newer operation technology changing capacity to protection capacity or introduce as evolving approach performance virtualization new This from enterprises move

our by to term and archive and storage drive our product data extensible for earlier, to long innovations is our key mentioned As initiative line reinstatement growth industry-leading first next strategic flexible expand the decade. creating retention

Windows path we have systems from large their and IBM within also use initiative, operating expanded continue our IBM that this but of these other to i go-to-market use now or that large venders or key include, targeted of one environments part enterprises Linux. as first such As

Protect IBM Tier on product then Second replacement.

legacy replacement. Third, upgrades. domain leveraging Content data Hitachi And HCP. Sepaton then Fourth tape EMC Platform Hitachi replacement finally or on then, Fifth, product Dell on the modernization. on and

path go-to-market to proven have effective. be expanded These

solutions the While challenges has its value by our customers. market for our created our and and excited team FalconStor remain certainly partners FalconStor to that is deliver COVID-XX business pandemic the and this customers, unique. enterprise very of I and dedication

is innovation on build advantage. to the unmatched space will Our newer continue data entrants nearly in and we two by technology of decades protection this

in Our dynamics archive the we provide customers solutions management that to powerful, the innovating and change know the one industry's deliver that most are capabilities of the our actively future. comprehensive storage of solutions of are space to that set

it to with provide more of this, turn results. over I Brad? a QX will overview Brad And detailed our to financial

Todd Brooks	Chief Executive Officer
Brad Wolfe	Chief Financial Officer

FalconStor Software (FALC) 12 May 202020 Q1 Earnings call transcript