This week began with a high start for FalconStor Software, Inc. (NASDAQ:FALC
, FALC message board
). The stock gained 12.63% on the market, while its volume jumped to over 410 thousand shares traded. As the average volume of FACL is hardly 97 thousand shares, that's a
very unusual value for the stock.
Apparently, the high trade started after a positive announcement on FALC's business was published last Friday. Apart from this announcement, the company reported the certified interoperability of FalconStor® File-interface Deduplication System with Bus-Tech's Mainframe Data Library to provide new data solutions.
After releasing the positive news, FALC started to move up, though it fell down in a while. However, yesterday the investors got activated and the stock climbed up again.
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.
The 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.