Data Domain: Fiscal 1Q08 Financial Results

Data Domain, Inc.  announced results for its first quarter ended March 31, 2008. Revenue for the first quarter of 2008 was $52.6 million, an increase of 17% from the fourth quarter of 2007 and an increase of 160% from the first quarter of 2007.

Data Domain posted net income under U.S. generally accepted accounting principles (GAAP) for the first quarter of 2008 of $2.7 million, or $0.04 per diluted share. This compares to a GAAP net loss of $76,000, or $0.00 per diluted share in the immediately preceding fourth quarter of 2007, and a GAAP net loss of $1.5 million, or $0.18 per diluted share in the first quarter of 2007.

Excluding the impact of stock-based compensation and related taxes in all periods, the non-GAAP net income for the first quarter of 2008 was $7.7 million, or $0.12 per diluted share, compared to a non-GAAP net income of $5.1 million, or $0.08 per diluted share in the immediately preceding fourth quarter of 2007, and a non-GAAP net loss of $363,000, or $0.05 per diluted share in the first quarter of 2007.

"In the first quarter of 2008, Data Domain again achieved record revenues with strong gross margins," said Frank Slootman, President and Chief Executive Officer of Data Domain. "Approximately 285 new customers were added during the quarter, bringing our cumulative customer count to over 1,800 worldwide that have purchased our systems. In addition, with new solution platforms, expanded protocol support, and nearline application support, Data Domain is positioning deduplication storage as a new tier of data center storage for data that customers don’t want on tape for performance reasons and don’t want on primary storage for cost reasons. As our storage platform expands in scale and scope, we plan to further deepen and broaden this growing position in the data center."

"Data Domain has again exceeded its revenue targets for the quarter, while improving key financial metrics and continuing its investment in infrastructure to promote and accommodate future growth," added Michael Scarpelli, Chief Financial Officer for Data Domain. "GAAP net income rose to $2.7 million, and while the company added 92 new employees, gross margins were strong at 74%."

Data Domain, Inc.