Yesterday, 6:51 PM
- Crossroads (NASDAQ:CRDS) blames its 47% Y/Y FQ1 sales drop on a $600K drop in custom development revenue, together with an expected drop in OEM revenue for its SPHiNX virtual tape/backup system. Product revenue fell 30% Y/Y to $862K, and IP license, royalty, and other revenue 55% to $1.31M.
- Gross margin fell to 73% from 85% a year ago; Crossroads blames product mix changes. Operating expenses fell 9% Y/Y to $3.55M; sales/marketing and R&D spend both fell, while G&A was nearly flat.
- Thanks to its stock/warrant offering, Crossroads ended FQ1 with $8.4M in cash, up from $4.9M at the end of FQ4. Shares have fallen to $2.81 AH.
- FQ1 results, PR
Yesterday, 4:10 PM
Tue, Jan. 27, 12:40 PM
Tue, Jan. 27, 11:54 AM
- Crossroads (NASDAQ:CRDS) is selling 3.07M stock/warrant units at $2.30 - 8% below Monday's close. Each unit consists of one share and 0.5 warrants to buy shares at $2.76; the warrants can be exercised six months after being issued, up until the 5-year anniversary of the issuance date.
- Net proceeds are expected to total $6M. Crossroads plans to use them to "fund the monetization of its intellectual property portfolio, including the costs of ongoing litigation and other proceedings." A portion might also be used to repay debt and other credit agreement obligations.
- Crossroads had $4.9M in cash at the end of Q3, and $4.8M in debt.
Thu, Jan. 8, 12:44 PM
- Crossroads (CRDS +3.6%) has expanded its storage OEM deal with Fuji's recording media unit to (already covers the U.S.) to include Canada and South America. Also, the expanded deal "provides considerations for further broadening distribution into additional global markets."
- The OEM deal is tied to Fuji's Dternity NAS data archiving/tape storage systems.
Dec. 9, 2014, 4:14 PM
Nov. 12, 2014, 12:45 PM
Oct. 17, 2014, 2:24 PM
- The White House has nominated Michelle Lee, once Google's lead patent counsel, to head the USPTO. Lee is currently the USPTO's deputy director.
- Google, like several other tech giants, has been a strong proponent of overhauling the U.S. patent system, with an eye towards limiting software patents and making it easier for defendants to recover legal fees from perceived patent trolls in the event that they win.
- In June 2013, the White House unveiled a slew of executive actions and legal actions meant to curtail patent system abuses. This year, the Supreme Court upheld the patentability of software concepts, but also set limits. That ruling has been followed by a string of adverse decisions levied by lower federal courts against companies pursuing infringement claims.
- IP licensing firms: ACTG, VHC, WILN, VRNG, CRDS, DSS, FNJN, MARA
Sep. 26, 2014, 1:46 PM
- Patent licensing firms VirnetX (VHC +15.2%), Crossroads (CRDS +12.8%), and Document Security (DSS +9.4%) are among the day's biggest gainers. Shares of all three companies had fallen hard in recent weeks (VirnetX especially).
- End-of-quarter short-covering could be contributing to VrinetX and Document Security's gains: The companies respectively had 17.7M and 2.3M shares shorted as of Sep. 15. Crossroads only had 240K shares shorted.
- Earlier this week, the WSJ observed federal courts have increasingly been making adverse rulings on software patents since June's Supreme Court ruling. "This is only the beginning of the fallout," Stanford law prof. Mark Lemley is quoted as saying.
Sep. 22, 2014, 10:05 AM
- Crossroads (CRDS -2.4%) has proposed selling up to $12M in preferred stock and warrants through a public offering. (S-1 filing)
- The company says the proceeds will help it "continue to fund the monetization of its intellectual property portfolio, including the costs of ongoing litigation and other proceedings." Some proceeds might also be used to "enhance liquidity and operational flexibility," including paying down debt under Crossroads' credit agreement with Fortress Investment.
- Crossroads had $7.1M in cash as of July 31, and $5.7M in debt.
Sep. 9, 2014, 4:12 PM
Jun. 27, 2014, 12:47 PM
Jun. 26, 2014, 6:08 PM
- In an article now out of embargo, SA Pro author Opportunity Hunter argues Crossroads' (CRDS +24.3%) StrongBox NAS storage appliance (pairs a disk cache with a tape system) offers a compelling total cost of ownership (TCO) for enterprises looking for a long-term data storage solution.
- The author states talks with management suggest the media & entertainment market could especially show strong interest in StrongBox, and notes existing clients include PBS, Lionsgate, and the Texas Rangers. An OEM partnership has been formed with Fujifilm, and a distribution partnership with Toshiba.
- Opportunity Hunter is also confident about the licensing value of Crossroads' 972 and (often ignored) non-972 patent portfolios, and is pleased with recent insider buying.
Jun. 26, 2014, 12:45 PM
Jun. 19, 2014, 1:15 PM
- In a closely-watched case, the Supreme Court has upheld the patentability of software concepts, albeit while setting limits: Companies can't patent a mere abstract idea on a computer, but can patent software ideas that advance or improve upon existing ideas.
- The ruling comes a month after Sen. Pat Leahy shelved a hotly-contested bill aimed at limiting the power of patent trolls. Many tech giants and startups backed the bill, while IP licensing firms staunchly opposed it.
- A few licensing firms are trading lower on a moderately down day for tech: VRNG -2.2%. ACTG -1.3%. VHC -2.8%. PRKR -3.8%. SPEX -3.1%.
- Other related names: RPXC, WILN, DSS, CRDS, MARA.
Jun. 19, 2014, 11:06 AM
- Lone Star Value, a fund founded by Crossroads (CRDS) chairman Jeffrey Eberwein, plans to periodically buy shares through a Rule 10b5-1 plan. (8-K) (h/t Tom Shaughnessy)
- The plan becomes effective on June 27, and terminates on June 30, 2015.
- In March, Crossroads announced Lone Star would buy $2.9M worth of shares through a $4.3M private placement.
CRDS vs. ETF Alternatives
Crossroads Systems Inc is a provider of data protection solutions. The Company develops products that address specific IT challenges, such as cost-effectively storing and protecting business-critical data.
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