FalconStor Software Inc. announced that many of its customers are experiencing dramatic efficiencies and increased data availability for their data centers using FalconStor(R) Continuous Data Protector (CDP). FalconStor CDP allows customers to deploy unified backup and disaster recovery (DR), to reduce dependence on tape backup for restores and to create continuously available data center environments, while reducing operating expenses. FalconStor CDP helps organizations change their approach to backup and recovery by replacing cumbersome tape-based backup with a flexible, granular disk-based process that allows IT managers to set their recovery time objectives (RTO) and recovery point objectives (RTO) according to the unique service-level agreement (SLA) requirements for each server or application. The integrated backup and DR provides instant recovery from disk to replace time-consuming restores and to minimize the use of tape. In addition, FalconStor CDP includes remote replication for rapid, comprehensive DR and WAN optimization that ensures business continuity and reduces costs.

Falconstor Software Inc. reported consolidated unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported revenues increased 10% to $21.5 million, compared with $19.6 million for the same period a year ago. GAAP loss from operations for the quarter was $2.5 million, compared with a loss of $1.4 million in the third quarter of 2008. GAAP net loss for the quarter was $2.0 million, or $0.05 per share, compared with a loss of $1.6 million, or $0.03 per share, in the third quarter of 2008. Stock-based compensation expense was $2.2 million in the third quarter of 2009 and $1.6 million in the third quarter of 2008. Non-GAAP loss from operations was $0.2 million in the third quarter of 2009, compared with operating income of $0.3 million in the third quarter of 2008. Non-GAAP net income was $0.1 million in the third quarter of 2009, or breakeven on a per share basis, compared with $0.4 million, or $0.01 per diluted share, in the third quarter of 2008. Non-GAAP results exclude the effects of stock-based compensation expense net of the related income taxes. Loss income before income taxes was $2,224,102 as compared to $1,098,249 for the same period last year. The company generated $9.6 million in cash flow from operations in the third quarter and closed the quarter with $46.9 million in cash, cash equivalents and marketable securities. For nine months ended, the company reported revenues increased 5% to $67.0 million, compared with $63.6 million for the same period a year ago. GAAP loss from operations for the nine month period was $3.0 million compared with income from operations of $1.2 million in 2008. GAAP net loss was $1.6 million, or $0.04 per share for the nine months ended September 30, 2009, compared with net income of $0.6 million, or $0.01 per diluted share, in the same period a year ago. Stock-based compensation expense was $6.7 million in 2009 and $6.6 million in 2008. Non-GAAP income from operations was $3.7 million for the nine months ended September 30, 2009, compared with $7.8 million in 2008. Non-GAAP net income was $3.6 million, or $0.08 per diluted share, compared with $5.8 million, or $0.11 per diluted share in the same period a year ago. Non-GAAP results exclude the effects of stock-based compensation expense net of the related income taxes. Loss income before income taxes was $3,010,554 as compared to $2,405,246 for the same period last year.

Falconstor Software Inc. expected to Report Fiscal Year 2009 Results on February 1, 2010. This event was calculated by Capital IQ (Created on October 17, 2009).