SOURCE: Crossroads Systems
AUSTIN, TX--(Marketwire - Mar 8, 2013) - Crossroads Systems, Inc. (NASDAQ: CRDS), a global provider of data archive solutions, today announced a reduction in its workforce affecting 30 employees, or approximately 23 percent of the company's 129 employees.
The reduction comes as Crossroads' development of the StrongBox® shared storage solution enters its final stages. More than 85 percent of the reduction is within research and development. Expected cost savings are approximately $5 million annually.
"Over the last couple of years, we have greatly increased engineering expenses in order to be the first to market with our innovative StrongBox archive solution," said Rob Sims, President and CEO at Crossroads Systems. "The product continues to be well received in the marketplace and we are pleased with its strong performance. We highly value all of our employees and deeply regret having to make these reductions within the Crossroads family. However, this reduction that largely affects R&D was required to better align ongoing expenses with our business and position Crossroads for future growth."
About Crossroads Systems
Crossroads Systems, Inc. (NASDAQ: CRDS) is a global provider of data archive solutions. Through the innovative use of new technologies, Crossroads delivers customer-driven solutions that enable proactive data security, advanced data archiving, optimized performance and significant cost-savings. Founded in 1996 and headquartered in Austin, TX, Crossroads holds more than 100 patents and has been honored with numerous industry awards for data archiving, storage and protection. Visit www.crossroads.com.
Important Cautions Regarding Forward-Looking Statements
This press release includes forward-looking statements that relate to the business and future events or future performance of Crossroads Systems, Inc. and involve known and unknown risks, uncertainties and other factors that may cause its actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "will," "would," "could," and similar expressions or phrases identify forward-looking statements. Forward-looking statements include, but are not limited to, statements about Crossroads Systems' ability to implement its business strategy, including the transition from a hardware storage company to a software solutions and services provider, its ability to expand its distribution channels, its ability to maintain or broaden relationships with existing distribution channels and strategic alliances and develop new industry relationships, the performance of third parties in its distribution channels and of its strategic alliances, uncertainties relating to product development and commercialization, the ability to obtain, maintain or protect patent and other proprietary intellectual property rights, technological change in its industry, market acceptance of its products and services, future capital requirements, regulatory actions or delays, competition in general and other factors that may cause actual results to be materially different from those described herein. Forward-looking statements in this press release are based on management's beliefs and opinions at the time the statements are made. Crossroads Systems does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.
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