FalconStor Software Inc. (Nasdaq: FALC) said it has formally completed its reverse merger with former Ethernet switch vendor Network Peripherals, creating a new entity in the storage-networking virtualization market with $65 million in cash and a presence on the Nasdaq (see FalconStor is on the Board).
"As of today, we're a well-funded software company," said ReiJane Huai, FalconStor founder and now CEO of the new company, which will be called FalconStor and will trade under the symbol FALC. The company makes software for "virtualization" of storage networks, allowing users to pool storage for sharing among multiple applications and across multiple servers.
During a Thursday morning conference call announcing the official SEC blessing of the merger, Huai said that FalconStor now has a war chest of $65 million in cash and equivalents, which he said was enough to fund the business "from now to profitability" (which, by the way, was a terrific movie: Burt Lancaster, Deborah Kerr...).
Huai was coy, however, about FalconStor's current numbers for sales of its flagship IPStor software product, which started shipping earlier this year. "We're just in the early stages of ramping revenue," said Huai, who said he'll wait until the new company's first official quarterly report in late October to reveal revenue figures.
When pressed a bit more about finances during the call's question-and-answer period, Huai said that FalconStor's business-expense costs have been running at about $4 million to $5 million per quarter and the company's immediate goal is to reach a "break-even" revenue level. He declined to predict when he expects FalconStor to reach that level.