Crossroads Systems tops 2Q estimates as sales surge

Crossroads Systems posted a smaller-than-expected loss in its second quarter Tuesday, losing $639,000, or 2 cents a share, on sales of $11.1 million.

First Call Corp. consensus expected the maker of fibre channel storage routers to lose 3 cents a share in the quarter.

Ahead of the earnings report, Crossroads (Nasdaq: CRDS) shares closed off 9, or 15 percent, to 50 7/8.

The $11.1 million in sales represents a 217 percent increase from the year-ago quarter when it lost $904,000, or 14 cents a share, on sales of $3.5 million.

Including a variety of one-time and amortization charges, Crossroads posted a loss of $21.6 million, or 83 cents a share, in the quarter.

"We moved quickly to accomplish a number of key objectives this quarter," said CEO Brian Smith in a prepared release. "This performance reflects our ability to execute our strategy while positioning ourselves for additional growth in new markets."

Last quarter, Crossroads checked in with a loss of $235,000, or a penny a share, on sales of $8.8 million.

Its shares hustled up to a 52-week high of 202 1/4 in February before plummeting to a low of 36 1/4 in April.

First Call Corp. predicts it will lose a nickel a share in the fiscal year.

Both analysts covering the stock maintain either a "buy" or "strong buy" recommendation.

Crossroads Systems is based in Austin, Texas.