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FalconStor Tunes Up InfiniBand

Coming off a strong quarter spurred by virtual tape library (VTL) sales, FalconStor is ready to make a move into InfiniBand and expand its disaster recovery services this year. (See FalconStor Reports Earnings.)

FalconStor rebounded from problems earlier in the year to finish strong in its final quarter, largely on the strength of its virtual tape library (VTL) software and expansion into China. FalconStor has OEM deals with EMC, Hewlett-Packard, IBM, and Sun to sell VTL software, and VTL sales accounted for most of its revenue last quarter.

FalconStor also reported more than 5 percent of its revenue from China, thanks to recent partnerships with networking giant Huawei and the Chinese Academy of Sciences, the nation's Internet backbone. (See FalconStor, Huawei-3Com Expand, Huawei Sets Sights on IP SANs, and China: Storage Superpower?)

FalconStor generated $20.2 million in revenue last quarter, well above analysts' consensus forecast of $16.6 million. That was a 55 percent year-over-year and 56 percent sequential increase, and a long way from the first quarter of 2006 when FalconStor lost $3.6 million after falling short of revenue expectations. (See Storage Financials Take a Dip.)

Besides VTLs, FalconStor has software for continuous data protection (CDP), IP SANs, and virtualization. On a call with analysts Tuesday evening, VP of business development Bernie Wu said FalconStor is poised to enter a new area: InfiniBand. Wu says he sees the high-speed interconnect going beyond high-performance computing into data centers. He says FalconStor could generate income from InfiniBand software around the middle of this year.

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