Crossroads Systems, Inc. provided preliminary earnings guidance for the fourth quarter and full year ended October 31, 2014. For the quarter, the company expects to report $2.5 million to $2.6 million in total revenue as compared to $2.1 million for the quarter ended July 31, 2014. The principal factor in the expected quarterly revenue increase is the increase in expected StrongBox unit sales revenue over the prior quarter. The company expects total revenue to reflect a decrease from the $3.6 million reported for the three months ended October 31, 2013, due to a reduction in revenue received from the OEM SPHiNX product as HP transitions the product to their own platform. Year over year, The company expects to report decreased revenue due to the decrease in OEM SPHiNX revenue. The company expects to report a loss from operations of $1.7 million to $1.9 million for the three months ended October 31, 2014, reflecting an increased loss as compared to the $1.7 million loss reported for the three months ended July 31, 2014, due to increased IP litigation and additional year-end expenses. The company expects to report a decreased loss from operations from that reported in the three months ended October 31, 2013 due to reduced expenses from the October 2013 reduction in force. Year over year, The company expects to report decreased loss from operations due to the company's decreased headcount and related expenses.

For the year, the company expects total revenue to be in the range of $11.0 million to $11.1 million and loss from operations to be in the range of $5.7 million to $5.9 million.