FalconStor Software Inc. said Tuesday that its restructuring effort paid off in the third quarter, as it swung to a profit from a loss a year earlier.
The Melville company’s stock lost 1 cent to close Tuesday at 29 cents, following the company’s earnings report after the market closed on Monday.
Net income was $1.4 million, or 2 cents per share, compared with a loss of $2 million, or 2 cents per share, in the 2016 quarter. Revenue fell 17 percent to $6.1 million from $7.3 million in the year-ago period.
The quarter “marks an important pivot point for FalconStor as the strategic restructuring launched earlier in 2017 and additional focus implemented during the quarter have produced a return to profitability,” FalconStor chief executive Todd Brooks said in a statement.
The company said the restructuring, which included bringing head count down to 83 employees, is expected to save about $10 million a year. The company had 166 full-time and part-time employees on Dec. 31.
Last week, the company said that an affiliate of its largest shareholder, Hale Capital Partners LP, had agreed to purchase up to $3 million of a proposed private placement of senior secured debt, warrants and preferred stock. FalconStor said it also had agreed to a short-term loan for $500,000 from Hale Capital.
Hale Capital is based in Manhattan. Hale’s CEO, Martin Hale Jr., is a FalconStor director.