Crossroads Systems Inc Net Income jumped on 72.1%
12/14/2020 • About Crossroads Systems Inc (
$CRSS) • By InTwits
Crossroads Systems Inc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: in FY2020 vs. in FY2019 vs. -794.5% in FY2016
- Crossroads Systems Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -5.2% for the sames years
- The company has potentially unprofitable business model: ROIC is 3.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.5x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Crossroads Systems Inc's Revenue decreased on 2.8%. Revenue decline showed acceleration in FY20Q4 - it was 6.5% YoY.
Gross Margin increased slightly on 1.8 pp from 27.2% to 29.0% in FY2020. SG&A as a % of Revenue showed almost no change in FY2020.
Net Income margin increased on 3.6 pp from 4.6% to 8.2% in FY2020.
Return on investment
The company operates at low ROIC (3.9%) and ROE (10.5%).
Leverage (Debt)
Debt jumped on 96.9% while cash jumped on 22.5%.
Crossroads Systems Inc has short term refinancing risk: cash is only 3.8% of short term debt.
Management team
Crossroads Systems Inc's CEO is Eric Donnelly. Eric Donnelly has 3 years tenure with the company. Farzana Giga is a the company's CFO. Farzana Giga has spent 4 years at the company.
Financial and operational results
Crossroads Systems Inc ($CRSS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 0.674 | 0.071 | 28.442 | 37.704 | 36.635 | -2.8% |
| Gross Profit | 0.504 | 0.056 | | 10.257 | 10.625 | 3.6% |
| SG&A | 5.928 | 2.786 | | 2.072 | 2.028 | -2.1% |
| EBITDA | -5.355 | | | | | |
| Net Income | -0.716 | -1.675 | 23.835 | 1.752 | 3.015 | 72.1% |
Balance Sheet
|
|---|
| Cash | 2.634 | 1.240 | | 1.736 | 2.127 | 22.5% |
| Short Term Debt | 0.000 | 0.000 | | 65.802 | 55.392 | -15.8% |
| Long Term Debt | 0.000 | 0.000 | | 0.000 | 74.198 | |
Cash flow
|
|---|
| Capex | 0.028 | 0.000 | | | | |
Ratios
|
|---|
| Revenue growth | -35.5% | -89.5% | 39,959.5% | 32.6% | -2.8% | |
| EBITDA growth | -36.3% | | | | | |
|
|---|
| Gross Margin | 74.8% | 78.9% | | 27.2% | 29.0% | 1.8% |
| EBITDA Margin | -794.5% | | | | |
| SG&A, % of revenue | 879.5% | 3,923.9% | | 5.5% | 5.5% | 0.0% |
| Net Income Margin | -106.2% | -2,359.2% | 83.8% | 4.6% | 8.2% | 3.6% |
| CAPEX, % of revenue | 4.2% | 0.0% | | | | |
|
|---|
| ROIC | -175.9% | -96.3% | | | 3.9% | |
| ROE | -31.9% | -68.6% | | | 10.5% | |
Crossroads Systems Inc ($CRSS) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 10 | 10 | 9 | | 6.0% | -8.7% | 0.4% | -6.5% |
| Net Income | 1 | 1 | 1 | 0 | | 29.3% | -29.8% | -17.7% | - |
Balance Sheet
|
|---|
| Cash | 0 | 3 | 2 | 2 | | -60.0% | 184.2% | 149.1% | 22.5% |
| Short Term Debt | 60 | 59 | 44 | 55 | | -15.0% | -8.8% | -33.5% | -15.8% |
| Long Term Debt | 0 | 71 | 85 | 74 | | - | - | - | - |
Ratios
|
|---|
| Gross Margin | 32.2% | 26.3% | 26.3% | 32.3% | | 2.5% | 0.8% | -1.7% | 6.0% |
| Net Income Margin | 10.6% | 8.5% | 9.5% | 4.4% | | 1.9% | -2.5% | -2.1% | 12.1% |
Peers in Technology Hardware, Storage & Peripherals
Below you can find Crossroads Systems Inc benchmarking vs. other companies in Technology Hardware, Storage & Peripherals industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Ionix Technology Inc ($IINX) | - | 246.0% | -5.8% | 92.3% | 66.8% |
| Veritec Inc ($VRTC) | - | -52.2% | 53.1% | -38.5% | 42.9% |
| Pure Storage, Inc. ($PSTG) | - | 67.9% | 38.6% | 32.7% | 20.9% |
| USA Technologies, Inc. ($USAT) | - | 34.5% | - | - | 12.9% |
| CPI Card Group Inc. ($PMTS) | - | -17.4% | 0.4% | 8.7% | 12.3% |
| |
|---|
| Median (20 companies) | 1.4% | 2.1% | 4.3% | -3.7% | -10.2% |
|---|
| Crossroads Systems Inc ($CRSS) | - | -89.5% | 39,959.5% | 32.6% | -2.8% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Immersion Corporation ($IMMR) | 99.7% | 99.4% | 99.8% | 99.5% | 99.4% |
| Datasea Inc ($DTSS) | - | 39.3% | 54.4% | - | 89.7% |
| Pure Storage, Inc. ($PSTG) | 61.9% | 65.9% | 65.5% | 66.4% | 69.0% |
| Avid Technology, Inc. ($AVID) | 65.0% | 57.8% | 57.9% | 60.5% | 63.3% |
| Socket Mobile, Inc. ($SCKT) | 50.2% | 53.5% | 51.4% | 52.5% | 53.1% |
| |
|---|
| Median (21 companies) | 38.5% | 38.9% | 38.6% | 35.1% | 38.2% |
|---|
| Crossroads Systems Inc ($CRSS) | 74.8% | 78.9% | - | 27.2% | 29.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Apple Inc. ($AAPL) | 32.7% | 31.2% | 30.8% | 29.4% | 28.7% |
| CPI Card Group Inc. ($PMTS) | 14.9% | -0.0% | 9.0% | 15.2% | 17.9% |
| Immersion Corporation ($IMMR) | -25.1% | -127.0% | 48.6% | -50.4% | 17.4% |
| Avid Technology, Inc. ($AVID) | 17.5% | 6.6% | 8.4% | 13.5% | 13.6% |
| Western Digital Corporation ($WDC) | 12.5% | 21.4% | 27.5% | 11.5% | 11.7% |
| |
|---|
| Median (20 companies) | 4.9% | 4.0% | 7.9% | 7.8% | 7.8% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Datasea Inc ($DTSS) | - | 0.0% | 0.0% | - | 20.9% |
| Hewlett Packard Enterprise Company ($HPE) | 10.8% | 10.9% | 9.6% | 9.8% | 8.8% |
| Pure Storage, Inc. ($PSTG) | 8.9% | 10.4% | 6.3% | 7.4% | 5.3% |
| Stratasys, Ltd. ($SSYS) | 6.7% | 3.3% | 3.5% | 3.5% | 5.2% |
| Western Digital Corporation ($WDC) | 4.5% | 3.0% | 4.0% | 5.3% | 3.9% |
| |
|---|
| Median (20 companies) | 1.7% | 1.9% | 2.3% | 2.0% | 2.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| HP Inc. ($HPQ) | 15.8% | 60.8% | 72.9% | 116.0% | 109.2% |
| Apple Inc. ($AAPL) | 27.0% | 23.8% | 28.0% | 29.5% | 33.0% |
| Avid Technology, Inc. ($AVID) | - | - | 252.4% | 42.1% | 30.0% |
| CPI Card Group Inc. ($PMTS) | 12.8% | -9.3% | 2.7% | 15.4% | 20.5% |
| NCR Corporation ($NCR) | 13.9% | 16.3% | 4.6% | 14.3% | 5.5% |
| |
|---|
| Median (21 companies) | 1.8% | 1.6% | 2.7% | 4.0% | 2.0% |
|---|
| Crossroads Systems Inc ($CRSS) | -175.9% | -96.3% | - | - | 3.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Diebold Nixdorf Incorporated ($DBD) | - | 8.3x | - | 6.6x | 7.3x |
| CPI Card Group Inc. ($PMTS) | 5.8x | - | 12.4x | 7.2x | 5.2x |
| Hewlett Packard Enterprise Company ($HPE) | 0.4x | 1.2x | 1.6x | 2.6x | 5.2x |
| NCR Corporation ($NCR) | 2.7x | 2.3x | 5.2x | 3.3x | 4.8x |
| Western Digital Corporation ($WDC) | 5.5x | 1.7x | 1.1x | 3.7x | 3.5x |
| |
|---|
| Median (12 companies) | 0.2x | 0.3x | 0.6x | 1.4x | 3.0x |
|---|
