FalconStor Software, Inc. (FALC) saw its loss narrow to $1.98 million, or $0.05 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2.58 million, or $0.07 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.70 million, or $0.04 a share from a loss of $2.19 million or $0.05 a share, a year ago.

Revenue during the quarter dropped 24.34 percent to $7.33 million from $9.68 million in the previous year period. Gross margin for the quarter contracted 307 basis points over the previous year period to 71.88 percent. Operating margin for the quarter stood at negative 24.59 percent as compared to a negative 25.54 percent for the previous year period.

Operating loss for the quarter was $1.80 million, compared with an operating loss of $2.47 million in the previous year period.

However, the adjusted operating loss for the quarter stood at $1.53 million compared to operating loss of $2.09 million in prior year period.

"We continue to see our flagship FreeStor® platform adding new customer adoptions, existing customer conversions, additional industry award recognition and a new release to support the increasingly expanding footprint of the cloud" said Gary Quinn, president and chief executive officer. "While we are pleased with the performance of FreeStor over the last fifteen months of availability, we have found difficulty in out pacing the decline of our legacy point solution business as customers transform their infrastructures. We will continue to optimize our cost structures to match our run-rate outlook of bookings, billings and total revenue."
 

Cash conversion cycle (CCC) has increased to 18 days for the quarter from 11 days for the last year period. Days sales outstanding went up to 60 days for the quarter compared with 54 days for the same period last year.

At the same time, days payable outstanding went down to 42 days for the quarter from 48 for the same period last year.