Crossroads Announces Results

AUSTIN, Texas -- Crossroads Systems, Inc. (OTC Pink Sheets: CRDS.PK), a leading provider of business information assurance solutions for secure storage and data protection, today announced results for its fiscal third quarter ended July 31, 2007 (Q307).

Revenue totaled $4.6 million for Q3’07 compared to $4.9 million in the fiscal second quarter ended April 30, 2007 (Q2’07). Product revenue totaled $2.4 million for Q3’07 compared to $1.9 million for Q2’07. In addition, revenue from IP license, royalty and other totaled $2.1 million for Q3’07 compared to $3.0 million for Q2’07. Gross profit was $3.5 million, or 76 percent for Q3’07, compared to $4.2 million, or 84 percent for Q2’07. Net loss for Q3’07 was $3.3 million, or $0.12 cents loss per share, compared to a net loss of $2.3 million, or $0.08 cents loss per share in Q2’07.

During the quarter, Crossroads acquired Grau Data Storage’s well-known FileManager Agent, the company’s leading Hierarchical Storage Management system.

Crossroads Systems Inc.