Crossroads Systems, Inc. (NASDAQ CRDS)

Crossroads Systems, Inc. (NASDAQ CRDS)

Crossroads Systems is a Volatile Stock

Crossroads Systems, Inc. (NASDAQ: CRDS), an intellectual property licensing company, reported financial results for its fiscal third quarter ended July 31, 2016. On March 22, 2016, Crossroads sold its product business to Canadian-based StrongBox Data Solutions, Inc.

The organization is close to the end of the booked offering process for the non-972 portfolio. In spite of the fact that it can’t ensure the outcomes or timing of a deal, the organization would like to consummate an exchange in 2016.

Additionally in the second from last quarter, the organization proceeded with its requests identified with the ‘972 patent portfolio under the steady gaze of the US Court of Appeals for the Federal Circuit. The organization stays certain that Crossroads has convincing contentions and anticipates the hearing in January.

The company’s intellectual property license revenue declined massively for the fiscal third quarter to $57,000, relative to $445,000 in the same quarter a year ago. Its gross profit was standing around $34,000, or 60% of total revenue, relative to $257,000 or 58% of total revenue in the same quarter a year ago.

Its operating expenses in the Q3 also reduced to $1.2 million, relative to $2.8 million in the third quarter last year. This reduction is mainly due to lower headcount and lower intellectual property litigation expenses.

Overall, despite lower revenue, its net loss available to common stockholders was standing around $(481,000) or $(0.39) loss per share, relative to a net loss of $(3.3) million or $(3.40) loss per share in the same quarter a year ago. Its, cash, cash equivalents, and restricted cash stood around $4.9 million in the third quarter, relative to $6.1 million in the previous quarter.