35° Good Afternoon
35° Good Afternoon

FalconStor CEO resigns, replacement named; layoffs planned

Todd Oseth will be FalconStor's new president and

Todd Oseth will be FalconStor's new president and CEO effective July 1, 2017. Credit: FalconStor Software Inc.

FalconStor Software Inc., a Melville data-storage company that is grappling with declining sales and a delisting notice from the Nasdaq Stock Market LLC, is cutting its workforce and shaking up its leadership, the company announced Tuesday.

The company said in a news release that on June 14 Gary Quinn, chief executive, president and a director of the company, had resigned, effective July 1.

Quinn is being replaced as president and chief executive by Todd Oseth, a former president and chief executive of Denver-based Intermap Technologies, also effective July 1.

FalconStor, founded in 1994, also plans to cut its workforce to about 90 employees, saving about $10 million a year, according to a government filing. The company expects to incur charges of as much as $800,000 in connection with the layoffs, primarily related to severance.

The company had 166 full-time and part-time employees on Dec. 31.

FalconStor chief financial officer Daniel Murale said in a telephone interview that job cuts will be spread worldwide, with about 35 jobs remaining in Melville after the layoffs, which have already begun.

Murale said FalconStor also has offices or “virtual offices” in La Garenne, France; Reading, England; Munich; Taichung, Taiwan; Tokyo; Beijing; Kuala Lumpur, Malaysia; and Singapore.

“All subsidiaries will remain active and intact,” Murale said.

Oseth previously held executive positions with McData, EMC and Sony. “I’m honored to lead the team as we focus first on serving our substantial customer base and second on innovating in addressing storage challenges where FalconStor leads the market,” he said in a statement.

FalconStor has gone through a succession of CEOs after founder and chief executive ReiJane Huai and two former salesmen were accused of paying bribes in exchange for contracts. Huai resigned from the company in September 2010. He killed himself in September 2011, the day before he was scheduled to plead guilty in court.

FalconStor executive James McNeil was named CEO in January 2011, stepping down in June 2013. He was succeeded by Quinn in July 2013.

FalconStor makes software for corporate customers that allows them to copy, move, protect and retrieve data.

Shares of FalconStor fell 1.8 percent Tuesday to close at 26 cents on the Nasdaq Capital Market. They are down about 43 percent year to date.

Nasdaq has notified FalconStor that the company is out of compliance with rules requiring a minimum $1 bid price for its stock and a $35 million market value of listed securities.


We're revamping our Comments section. Learn more and share your input.

More news