AUSTIN, Texas, March 22, 2016 /PRNewswire/ -- Crossroads
Systems, Inc. (NASDAQ: CRDS) (the "Company") today announced the
sale of its product business and all related assets to
Canadian-based StrongBox Data Solutions, Inc. ("SDSI") for net
proceeds of $1.85 million in cash.
The agreement includes the Company's entire product portfolio and
maintenance business, including its StrongBox and SPHiNX storage
solutions. As part of the purchase agreement, 27 of Crossroads'
employees have transitioned to SDSI. Existing product customers and
partners should see no disruption in service.
The Company, in partnership with Fortress Investment Group, also
signed an agreement with AQUA Licensing to market and sell the
non-'972 patent portfolio. The portfolio consists of 138 patents
and pending patents. Although Crossroads commissioned two
independent studies of the portfolio in 2013 and 2014, the Company
can provide no assurance regarding the timing or value of a
transaction, or even if one will occur.
Richard K. Coleman, Jr.,
President and CEO at Crossroads Systems said, "We believe the sale
of our product business is clearly in shareholders' best interests
as it significantly reduces our cash burn. Going forward we
will focus our efforts and resources on vigorously defending our
intellectual property and identifying additional IP monetization
opportunities. As part of that initiative, we believe our agreement
with Fortress and AQUA to seek a buyer for the non-'972 patent
portfolio provides the quickest potential path to additional
shareholder value."
About Crossroads Systems
Crossroads Systems, Inc.
(NASDAQ: CRDS) is an intellectual property licensing company
headquartered in Austin, Texas.
Founded in 1996 as a product solutions company, Crossroads created
some of the storage industry's most fundamental patents and has
licensed patents to more than 50 companies since 2000. Visit
www.crossroads.com.
About StrongBox Data Solutions, Inc.
StrongBox Data
Solutions is a worldwide leader in big data storage, providing
powerful solutions to many of the world's largest corporations,
governments and organizations. StrongBox is a pioneer in
simplifying data management and reducing storage costs with
revolutionary, patented technology. We make data storage simple,
flexible and affordable, and take pride in offering unmatched
customer support. Step into the next generation of data storage by
visiting us at www.strongboxdata.com.
Important Cautions Regarding Forward-Looking
Statements
This press release includes forward-looking
statements that relate to the business and expected 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, the potential market for our data storage
products, changes in the fair value of its derivative instruments
and its ability to achieve or maintain profitability. The future
performance of Crossroads Systems may be adversely affected by the
following risks and uncertainties: uncertainties relating to
product development and commercialization, uncertain market
acceptance of Crossroads Systems products, including StrongBox,
intense competition in the data protection and storage markets,
variations in quarterly results and a consequence of unpredictable
sales cycles and other factors, the ability to obtain, maintain or
protect patent and other proprietary intellectual property rights,
developments in litigation to which we may be a party,
technological change in the industry, future capital requirements,
regulatory actions or delays and other factors that may cause
actual results to be materially different from those described or
anticipated by these forward-looking statements. For a more
detailed discussion of these factors and risks, investors should
review Crossroads Systems' reports on Form 10-K, Form
10-Q, Form 8-K and other reports filed with the
Securities and Exchange Commission, which can be accessed through
the SEC's website or by clicking "SEC Filings" on the Company's
Investor Relations website
at http://investors.crossroads.com. Forward-looking
statements in this press release are based on management's beliefs
and opinions at the time the statements are made. All
forward-looking statements are qualified in their entirety by this
cautionary statement, and Crossroads Systems undertakes no
duty to update this information to reflect future events,
information or circumstances.
©2016 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.
Company
Contact:
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Investor
Contact:
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Jennifer
Crane
|
Mark Hood
|
Crossroads
Systems
|
Crossroads
Systems
|
ir@crossroads.com
|
ir@crossroads.com
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512.928.6897
|
512.928.7330
|
|
|
Press
Contact:
|
|
Matthew
Zintel
|
|
Zintel Public
Relations
|
|
matthew.zintel@zintelpr.com
|
|
281.444.1590
|
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SOURCE Crossroads Systems