Falconstor Software Inc. (NASDAQ:FALC) Q3 2019 Earnings Conference Call - Final Transcript
Nov 19, 2019 • 04:30 pm ET
Good afternoon, and thank you for joining us to discuss FalconStor Software's Q3 2019 Earnings Call. Todd Brooks, FalconStor's Chief Executive Officer; and Brad Wolfe, Chief Financial Officer, will discuss the Company's results and activities, and will open the call to your questions.
The Company's results and activities -- I would like to advise all participants that today's discussion may contain what some consider forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties are discussed in FalconStor's reports on the Forms 10-K, 10-Q and other reports filed with the Securities and Exchange Commission and in the Company's press release issued today. During today's call, there will be discussions that include non-GAAP results, and a reconciliation of the non-GAAP results to GAAP has been posted on FalconStor's website at www.falconstor.com under Investor Relations.
After the close of business today, FalconStor released its Q3 2019 earnings. Copies of the earnings release and supplemental financial information are available on FalconStor's website at www.falconstor.com. [Operator Instructions]
I'm now pleased to turn the call over to Todd Brooks.
All right, Casey, thank you very much, appreciate that. And I'd like to thank each of you for taking your time today to participate in our call. I'm pleased by the progress that FalconStor has made thus far in 2019 as we have aligned our efforts to three key strategic drivers. First, on generating consistent growth by continuing to expand our industry-leading backup and archived data optimization technology. Second, extending growth over the next decade by creating flexible and extensible data storage innovations. And then third, on delivering consistent operating profitability. Our products are pointed at a market reported by IDC to be sized at approximately $10.7 billion and predicted to grow at a compounded annual growth rate of 14.7% during -- through 2022. This growth is being driven by three factors: first, an explosion in the amount of data generated by various technologies, whether this in the form of traditional e-mail, documents, application databases, digital audio and video or Internet-connected devices. And then second, dramatic increase in data storage options, whether they be located in a traditional data center, a private cloud or a public cloud. And then third, on the ever-expanding need to retain data for lengthy periods of time to ensure legal and regulatory compliance. This dramatic growth in the capacity of data captured and stored is driving the need for enterprises to cost effectively, securely and intelligently manage this data.
In fact, according to IDC, up to 75% of data managed by an enterprise is directly related to routine backup and archive. Our technology allows an enterprise to leverage existing backup policies and procedures while ensuring the most stringent backup windows are met. Data capacity is reduced by up 95% and cloud storage alternatives, such as AWS, the Hitachi Content Platform or HCP, and IBM's Cloud Object Storage are available for improved data efficiency. I'm excited, if you