FalconStor Software Inc. Thursday reported a narrower net loss for the second quarter despite a decline in revenue, as the Melville storage software company pursues a cost-cutting program.
In the quarter ended June 30 revenue was $6.7 million, compared to $8.1 million in the prior year’s quarter. But the company posted a smaller net loss of $600,000, or 2 cents per share, compared to a net loss of $3.5 million, or 9 cents per share, in the 2016 quarter.
“The company has taken steps to realign our cost structure with our revenue outlook,” CEO Todd Oseth said in a statement. “In doing so, we have reduced our annualized costs by over $10 million.”
The company said a workforce reduction to 97 employees was “substantially completed” as of June 30 and had resulted in severance expenses of $800,000. Falconstor had 166 full-time and part-time employees on Dec. 31.
Since taking over on July 1 Oseth has been working to stem the company’s losses and devise a strategy to allow it to retain its listing on the Nasdaq stock market.
One of the Nasdaq requirements is to maintain a minimum $1-per-share stock price for 30 consecutive days.
On Thursday FalconStor shares rose 2.94 percent to 21 cents in after-hours trading. The stock has lost about 80 percent over the last 12 months.
In July, the 23-year-old company said it would seek stockholders’ approval for a reverse stock split — shrinking the number of shares outstanding to boost the per-share price.