Nelly Shishkova

FalconStor Software, Inc. (NASDAQ:FALC) Gains On Positive News

by Nelly Shishkova August 24, 2010

FalconStor Software, Inc. delivers data protection solutions that facilitate the availability of business-critical data. At the beginning of this year, the company traded higher, though since January the price has started a downtrend.

Falcon.jpgThe financial results of FALC show that its revenues and gross profit have increased as compared to the previous quarter. Though, the company has incurred a net loss and its net income has declined.

As a result of the increase in the hardware costs, the gross margins of FalconStor decreased on a year-over-year basis to 71% from 84% and the company has suffered some expenses. However, it still has sufficient cash to cover its operations and is confident about its future sales.

Based on the fact that FALC has been changing its price frequently, it's too soon for the current high trade to be registered as a new uptrend and the stock should be followed up.

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