Good Morning
Good Morning

Biz Buzz


FalconStor reports 2Q losses

Data storage specialist FalconStor Software Inc. of Melville on Tuesday reported deeper losses and lower sales in its second quarter, which ended June 30. FalconStor said it lost $5.8 million on revenues of $19.6 million, compared to the same quarter last year when it also had a loss -- $3.3 million -- on $20.2 million revenue. The results come as FalconStor faced a series of recent problems, notably the resignation last year of its founder, ReiJane Huai, after law enforcement began investigating "improper payments" made to a customer. FalconStor also faces a federal class-action lawsuit claiming that its executives made inside trades of more than 125,000 company shares, selling them for $545,000 at "artificially inflated prices" while withholding negative financial data from the public. And it is undergoing a Securities and Exchange Commission investigation into its accounting practices. "We continue to see some momentum in our sales as a result of our market focus and the investments that we've made in our sales force and our channel partnerships in the first half of the year," chief executive Jim McNiel said in Tuesdday's announcement. McNeil replaced Huai. -- JOSEPH MALLIA

Small business counseling

La Fuerza Unida Community Development Corp. will hold one-on-one counseling sessions this month for small business owners seeking loans and for people who want to be their own bosses. The sessions can cover anything from getting customers to drawing up a business plan and obtaining funding outside of the traditional avenues. The nonprofit has been getting dozens of calls monthly from people with business-related concerns, so the agency began setting up counseling sessions across Long Island in February, said David Boone, executive vice president for the nonprofit, based in East Norwich. "These are people who are working and have dreams of getting into business," he said. "Each of those businesses, we hope, will become a little economic engine." The counseling session will be from 9 a.m. to noon Monday at Circulo De La Hispanidad, 26 W. Park Ave., Long Beach. Another one has been set for 9 to noon Aug. 17 at the offices of Xavier A. Palacios & Associates Law, 1399 New York Ave., Huntington Station. Appointments are required. For more information call 516-922-8100 or go to lafuerza -- ELLEN YAN

Military jet work lifts CPI

Edgewood-based CPI Aerostructures increased its quarterly sales and profit mostly due to subcontracting work on U.S. military aircraft -- a Boeing A-10 attack jet and a Northrop Grumman Corp. E-2D surveillance airplane -- the company said Tuesday. CPI reported income of $1.5 million on revenue of $17.4 million, up from last year's $1.2 million income on $12.5 million sales. "The current second quarter and six-month periods were our best ever reporting periods in terms of revenue and net income," CPI Aero president Edward J. Fred said. Revenue from the two aircraft "accounted for approximately 74 percent of government subcontracting revenue and approximately 58 percent of total revenue for first half of 2011," Fred said. -- JOSEPH MALLIA

Getty Realty tenant in default

Getty Realty Corp., of Jericho, has not received the August monthly rental payment from its largest tenant, Getty Petroleum Marketing Inc., which leases properties for gas stations and convenience stores. The tenant said that due to its "distressed financial position, weakness in operating margins, and cash flow deficiencies, it was unlikely to be able to pay full rent for August," and future rent payments are also in doubt, Getty Realty said. Getty Realty says it issued a default notice to the tenant. Getty Petroleum's leases account for about 55 percent of Getty Realty's revenues, a J.P. Morgan research report estimated this past month. Getty Realty does not own Getty Petroleum. -- JOSEPH MALLIA

More news