CommVault: Fiscal 4Q13 Financial Results
Not far to be half billion dollar company
This is a Press Release edited by StorageNewsletter.com on May 9, 2013 at 2:57 pm| (in $ million) | 4Q12 | 4Q13 | FY12 | FY13 |
| Revenue | 114.0 | 138.3 | 406.6 | 495.9 |
| Growth | 21% | 22% | ||
| Net income (loss) | 9.8 | 17.0 | 31.9 | 53.2 |
CommVault Systems, Inc. announced its financial results for the fourth quarter and fiscal year ended March 31, 2013.
N. Robert Hammer, CommVault’s chairman, president and CEO stated: "Our excellent results in the fourth quarter were highlighted by record revenues, non-GAAP EBIT and operating cash flows. Our 23% growth in software revenues in the fourth quarter compared to the prior year was driven by another quarter of record enterprise software deals (transactions greater than $100,000) and strong demand both domestically and internationally. Our fourth quarter results concluded a strong fiscal 2013 where we achieved substantial improvements in all aspect of our business by delivering 25% software revenue growth and a 53% improvement in non-GAAP EBIT for the full fiscal year."
Hammer added: "We are well positioned going into fiscal 2014 and expect to deliver strong double digit revenue and non-GAAP operating income growth rates. We are particularly excited about the recent introduction of our new Simpana 10 software release. We believe that our Simpana 10 release has taken innovation in the market to a whole new level by changing the way companies manage data for their mobile workforces, improve operational efficiencies and extract value from their data for better decision making."
Total revenues for the fourth quarter of fiscal 2013 were $138.3 million, an increase of 21% over the fourth quarter of fiscal 2012 and an increase of 8% over the prior quarter. Software revenue in the fourth quarter of fiscal 2013 was $72.1 million, an increase of 23% year-over-year and 9% sequentially. Services revenue in the fourth quarter of fiscal 2013 was $66.1 million, an increase of 20% year-over-year and 6% sequentially.
For the full fiscal year, total revenues were $495.9 million, an increase of 22% over fiscal 2012. Software revenue for the full fiscal year was $251.5 million, an increase of 25% over fiscal 2012. Services revenue for the full fiscal year was $244.3 million, an increase of 19% over fiscal 2012.
Income from operations (EBIT) was $21.9 million for the fourth quarter, a 58% increase from $13.9 million in the same period of the prior year. Non-GAAP income from operations (EBIT) increased 50% to $31.8 million in the fourth quarter of fiscal 2013 compared to $21.1 million in the fourth quarter of the prior year. On a sequential basis, non-GAAP income from operations (EBIT) increased 7% in the fourth quarter of fiscal 2013.
Income from operations (EBIT) for the full fiscal year was $80.9 million, an increase of 64% over fiscal 2012. Non-GAAP income from operations (EBIT) increased 53% to $113.1 million in fiscal 2013 compared to $73.7 million in fiscal 2012.
For the fourth quarter of fiscal 2013, CommVault reported net income of $17.0 million, an increase of $7.1 million compared to the same period of the prior year. Non-GAAP net income for the quarter increased 48% to $20.2 million, or $0.41 per diluted share, from $13.7 million, or $0.29 per diluted share, in the same period of the prior year.
For the full fiscal year, CommVault reported net income of $53.2 million, an increase of $21.3 million compared to fiscal 2012. Non-GAAP net income for the full fiscal year increased 51% to $71.9 million, or $1.49 per diluted share, from $47.6 million, or $1.01 per diluted share, in fiscal 2012.
Operating cash flow totaled $42.9 million for the fourth quarter of fiscal 2013 compared to $30.1 million in the fourth quarter of fiscal 2012. For the full fiscal year, operating cash flow was $112.7 million, an increase of 13% compared to $100.0 million for fiscal 2012. Total cash and short-term investments were $435.9 million as of March 31, 2013 compared to $300.2 million as of March 31, 2012. There were no share repurchases during the fourth quarter of fiscal 2013, which still leaves $102.8 million remaining in the existing repurchase plan available through March 31, 2014.
Recent Business Highlight:
On February 25, 2013, the company announced the release of its Simpana 10 software suite. Simpana 10 extends data protection and archiving to deliver secure, self-service access from mobile devices, speed the adoption of cloud computing and extract value from big data. It includes technology advancements such as Enhanced IntelliSnap snapshot management; Simpana OnePass with Exchange; tighter integration with Hyper-V, vSphere 5.1 and vCloud Director 5.1; workflow automation; fourth-generation parallel deduplication; and customizable web-based reporting, dashboards and cloud-based analytics.
Comments
Abstracts the earnings call transcript:
Neil Robert Hammer, chairman, CEO and president:
"For FY '14, we expect to achieve strong double-digit revenue and EBIT growth. While we expect to have strong earnings growth in FY '14, we will not be able to repeat the 470 basis point operating margin expansion we achieved in FY '13.
"While our EMEA organization had a good year-over-year revenue growth in FY '13, we continue to be concerned about the European IT spending outlook."
Brian Carolan, CFO:
"Capacity-based license sales represent 73% of our Q4 software revenue and 69% of our full year software revenue.
"For the quarter, software revenues derived from indirect distribution channels increased 36% over the prior year period and represented 92% of software revenue. For the year, software revenue from indirect distribution channels increased 31% and represented 89% of software revenue. Our direct revenue represented the balance and declined 11% during FY '13.
"The revenue mix for the year was 51%, software; and 49%, services. And for fiscal Q4, the revenue mix was 52%, software; and 48%, services. From a services revenue perspective, our maintenance attach rates and renewal rates remained very strong. Services revenue for the fiscal year was $244.3 million, an increase of 19% year-over-year. Services revenue for Q4 was $66.1 million, an increase of 20% year-over-year and 6% sequentially.
"For the quarter, total revenue through Arrow comprised approximately 32% of total revenue, growing 64% year-over-year and 27% sequentially.
"Sales through our Dell relationships accounted for approximately 19% of total revenues for the quarter. Total quarterly Dell revenues grew 8% sequentially and were flat year-over-year. Over the past year, we have successfully shifted most of our SMB business to non-Dell distribution partners.
"We added approximately 450 new customers in the quarter. Our historical customer count now totals approximately 18,200 customers.
"We added 82 employees in fiscal Q4, which was a record quarter for us in terms of net headcount additions. We ended the fiscal year with 1,740 employees, up from 1,658 at the end of December and up from 1,437 employees at the end of March 2012. This net increase of 303 employees for the full fiscal year represents 21% year-over-year growth."
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