FalconStor Software Corp has posted quarterly results showing revenue up 35%, and has dropped a very strong hint about an OEM deal with IBM Corp.
For the third quarter ended September 30, 2005, net income was $500,000, compared to a net loss of $2.3m in the same period last year, on revenue of $10.1m, up from $7.5m last year. FalconStor is sticking to its existing guidance for full-year revenue of $40m to $45m.
In its earnings press release, FalconStor said it had scored an OEM deal with a major US-based high-tech company with worldwide distribution and service capabilities, which will see that OEM re-badge FalconStor’s VTL software.
Earlier in October IBM Corp announced a VTL product that it said was OEM’ed, but would not say from whom. There was already much reason to suspect that the source was FalconStor. Now that FalconStor itself is boasting of a new tier-one OEM deal, it is now clear that it is supplying IBM’s VTL software.