FalconStor Software Inc. Thursday reported lower fourth quarter revenue, but a narrowed net loss.

The Melville-based maker of software that automates data storage posted revenue of $7.4 million for the quarter ended Dec. 31 versus $9.4 million in the year-earlier period. Its net loss was $1.2 million, or 5 cents per diluted share, compared to a net loss of $1.9 million, or 6 cents per diluted share, in the 2015 quarter.

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Gary Quinn, president and chief executive, said the company is seeing customers of its legacy data storage software switch to its newer FreeStor product “for all of the benefits that a software-defined solution can provide.”

In November, FalconStor received a notice from the Nasdaq Stock Market warning that if the stock price continues to trade below $1 per share or the stock’s market capitalization remains below $35 million, the stock will be delisted.

On Thursday, FalconStor shares dipped 1.6 percent to 62 cents. They are down about 55 percent in the past 12 months. The company reported its earnings after the market close Thursday, and the stock was unchanged in after-hours trading.