Crossroads Systems Announces Workforce Reduction
AUSTIN, TX -- (Marketwire) -- 03/08/13 -- 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(R)
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
Important Cautions Regarding Forward-Looking Statements
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.
Copyright2013 Crossroads Systems, Inc. Crossroads and Crossroads
Systems are registered trademarks of Crossroads Systems, Inc. All
trademarks are the property of their respective owners. All
specifications are subject to change without notice.
512.928.6897 or 800.643.7148
Zintel Public Relations
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