CommVault: Fiscal 1Q10 Financial Results

CommVault Systems, Inc. announced its financial results for the first quarter ended June 30, 2009.

N. Robert Hammer, CommVault’s chairman, president and CEO stated: “We delivered a solid first quarter which was highlighted by a 10% growth in revenues and a 30% increase in Non-GAAP EBIT. Our Q1 revenue growth was driven by more enterprise deals during the quarter, strong demand for our Simpana 8 suite of products, especially deduplication and virtualization, and excellent results from our services organization. Our performance in a challenging economic environment demonstrates the quality and value that our Simpana software suite and related services provide to our customers worldwide.”

Total revenues for the first quarter of fiscal 2010 were $60.2 million, an increase of 10% over the first quarter of fiscal 2009 and an increase of 7% over the prior quarter. Software revenue in the first quarter of fiscal 2010 was $29.1 million, an increase of 5% year-over-year and up 6% sequentially. Services revenue in the first quarter of fiscal 2010 was $31.1 million, up 14% year-over-year and 9% sequentially.

Income from operations (EBIT) was $6.1 million for the first quarter, a 34% increase from $4.5 million in the same period of the prior year. Non-GAAP income from operations (EBIT) increased 30% to $9.3 million in the first quarter of fiscal 2010 compared to $7.2 million in the first quarter of the prior year.

For the first quarter of fiscal 2010, CommVault reported net income of $2.4 million, a decrease of $1.0 million compared to the same period of the prior year. Non-GAAP net income for the quarter increased 17% to $6.4 million, or $0.15 per diluted share, from $5.5 million, or $0.12 per diluted share, in the same period of the prior year.

Operating cash flow totaled $13.0 million for the first quarter of fiscal 2010 compared to $14.1 million in the first quarter of fiscal 2009. Total cash and cash equivalents were $119.2 million as of June 30, 2009 compared to $105.2 million as of March 31, 2009.

CommVault did not repurchase any shares of common stock under its share repurchase plan during the first quarter of fiscal 2010. As of August 4, 2009, CommVault has repurchased $40.2 million of common stock (2,853,305 shares) out of the $80.0 million in total that is authorized under its stock repurchase program. As a result, CommVault may repurchase an additional $39.8 million of its common stock under the current program which runs through March 31, 2010.

Recent Business Highlights:

• On June 11, 2009, CommVault announced that McAfee, Inc. and CommVault have aligned to offer customers the availability of integrated data and security management features utilizing the two companies’ respective data management, backup and security solutions.
• On June 8, 2009, CommVault announced that it has strengthened its global OEM partnership with Dell through the introduction of the Dell PowerVault DL2000, powered by CommVault Simpana 8 software. This new joint offering is designed to help small and medium-sized businesses (SMBs) achieve significant operational efficiencies and cost savings with an all-in-one disk-based solution featuring embedded block-level deduplication and improved management of virtualized environments.
• On June 2, 2009, CommVault announced that it has been recognized in Gartner’s 2009 Magic Quadrant for E-Mail Active Archiving, published May 19, 20091. CommVault’s E-mail Archiving and data retention solutions blend seamlessly as integral parts of the company’s overall holistic approach to data and information management.
• On July 14, 2009, CommVault announced that it continues to expand its North American PartnerAdvantage program with the addition of new online sales and technical accreditation capabilities. The enhancements reinforce the company’s ongoing commitment to building and maintaining a robust channel by continually investing in cost-effective yet powerful tools and solutions that help channel partners drive revenue from CommVault® Simpana® 8 software.
• On June 25, 2009, CommVault announced it was one of three companies selected as a 2009 Microsoft Worldwide Partner Conference Awards finalist in Advanced Infrastructure Solutions, Storage Solutions.
• On May 11, 2009, CommVault announced that it surpassed the 10,000 customer milestone as forward-looking businesses around the world invest in CommVault technology and its proven ability to wring cost and complexity out of their existing environments.