Good Morning
Good Morning

FalconStor moves headquarters from Long Island to Austin, Texas

FalconStor Software has moved its headquarters to Texas.

FalconStor Software has moved its headquarters to Texas. Its Melville offices are located at 2 Huntington Quadrangle. Credit: Steve Pfost

FalconStor Software Inc., which turned a profit in 2017 after eight years of losses, has moved its headquarters from Melville to Austin, Texas.

The maker of software used by corporations to manage data storage has 81 full- and part-time employees, including about 25 in Melville. That is a fraction of the 501 full-time and part-time employees it had as recently as Dec. 31, 2010.

Chief executive Todd Brooks said Thursday in an interview that the company plans to maintain operations centers in Taiwan and in Melville, which has "a lot of very talented individuals."

Brooks, who became CEO in August 2017 after FalconStor went through a flurry of executive changes, said the company moved its executive offices to Austin because of its position as a burgeoning technology corridor.

"When we bring in customers, Austin is a very vibrant area," he said. "It's Silicon Valley-like."

On Thursday, FalconStor announced another executive change, with the appointment of Brad Wolfe as chief financial officer, effective April 9.

Wolfe, the former CFO for Asure Software, takes over from Pat McClain, who will "transition into a senior adviser role," the company said in a statement. McClain joined the company as CFO in August 2017.

The company's website on Thursday afternoon still indicated Melville as the corporate headquarters though FalconStor's government filings listed the headquarters as Austin in late March.

FalconStor is the latest of many publicly traded Long Island companies that have moved away or been acquired by a company based outside the region. The list includes: Arrow Electronics Inc., which moved to Centennial, Colorado; Grumman Corp., now part of Northrop Grumman Corp., based in Falls Church, Virginia, and Pall Corp., now a unit of Washington, D.C.-based Danaher Corp.

In 2017 FalconStor listed its stock with the OTC Markets Group after being faced with a delisting notice by the Nasdaq Capital Market.

For 2017, FalconStor swung to net income of $1.1 million on revenue of $25.2 million after posting a net loss of $11 million on revenue of $30.3 million in 2016.

The company also noted that its finances had stabilized to the point where its independent auditor approved its filing without adding a "going concern" paragraph that warns investors that the company could run out of money.

ReiJane Huai guided the company's early growth as president and CEO. He killed himself at his Old Brookville home in September 2011, a day before he was scheduled to plead guilty in connection with a scheme to pay bribes in exchange for contracts to buy FalconStor software.

Shares of FalconStor Thursday closed unchanged at 9 cents.

More news