3par: Fiscal 1Q11 Financial Results

3PAR reported results for the first quarter of fiscal year 2011, which ended June 30th, 2010. Revenue for the first quarter was $54.3 million, an increase of 22% as compared to revenue of $44.5 million for the same period in the prior year, and an increase of 1% as compared to $53.7 million in the prior quarter, which ended March 31st, 2010.

For the first quarter of fiscal 2011, GAAP net loss was $1.8 million, or $0.03 loss per share, as compared to $1.8 million, or $0.03 loss per share for the same period in the prior year. Non-GAAP net income, which excludes the impact of stock-based compensation expense, was $1.0 million, or $0.02 earnings per share for the first quarter of fiscal 2011, as compared to $41,000, or $0.00 earnings per share, for the same period in the prior year.

"We are pleased with our results and the momentum in demand for our technology that we experienced during the first quarter of fiscal 2011," said David Scott, President and CEO. "We believe that the delivery of enterprise IT as a utility service is best accomplished using best-of-breed technologies. We also believe that our technological and architectural leadership in the areas of multi-tenant clustering, thin technologies, and autonomic management demonstrate our commitment to this best-of-breed approach and position the company well to thrive as more and more organizations pursue the delivery of IT as a service."

Additional First Quarter Fiscal 2011 Financial Information

• GAAP operating loss in the first quarter of fiscal 2011 was $1.6 million, as compared to $104,000 in the fourth quarter of fiscal 2010. GAAP operating loss was 3% of revenue in the first quarter of fiscal 2011, as compared to 0% in the fourth quarter of fiscal 2010. Non-GAAP operating income in the first quarter of fiscal 2011 was $1.3 million, as compared to $2.6 million in the fourth quarter of fiscal 2010. Non-GAAP operating income was 2% of revenue in the first quarter of fiscal 2011, as compared to 5% in the fourth quarter of 2010. GAAP net loss in the first quarter of fiscal 2011 was $1.8 million, as compared to $99,000 in the fourth quarter of fiscal 2010. Non-GAAP net income in the first quarter of fiscal 2011 was $1.0 million, as compared to $2.6 million in the fourth quarter of fiscal 2010.
• GAAP loss per share in the first quarter of fiscal 2011 was $0.03 per share on 62.5 million basic and diluted shares outstanding, as compared to $0.00 per share in the fourth quarter of fiscal 2010 on 62.2 million basic and diluted shares outstanding. Non-GAAP earnings per share in the first quarter of fiscal 2011 was $0.02 per share on 64.7 million diluted shares outstanding, as compared to $0.04 on 64.7 million diluted shares outstanding in the fourth quarter of fiscal 2010.
• Non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share are computed net of stock-based compensation. In the first quarter of fiscal 2011, the charges related to stock-based compensation were $2.9 million, as compared to $2.7 million in the fourth quarter of 2010.