CommVault: Fiscal 4Q15 Financial Results

CommVault Systems Inc. announced its financial results for the fourth quarter and fiscal year ended March 31, 2015.

N. Robert Hammer, chairman, president and CEO, stated: “Commvault achieved record full year revenue and operating cash flows in fiscal 2015 despite significant foreign exchange headwinds. For the full fiscal year, total revenues were up 6% on a constant currency basis, and operating cash flows were $123.8 million. We continued to make significant progress on our key transformation initiatives. The market response to our stand-alone solutions remains encouraging and our product strategy is being driven by our business unit structure which is providing much more comprehensive leadership to our product initiatives. For the quarter, our financial results were mixed. On the positive side, we had strong sequential software revenue growth in the Americas demonstrating building momentum related to our Americas turnaround plan. These positive sequential results in the Americas were offset by lower than forecasted results in both our EMEA and APAC regions, which were impacted by foreign currency headwinds.”

“Looking forward, our objective is to deliver substantially improved software revenue growth rates in the second half of fiscal 2016. We continue to make significant progress in our product, pricing and productivity related initiatives for us to achieve both this objective and also execute against our long-term strategy,” Hammer concluded.

Total revenues for the fourth quarter of fiscal 2015 were $150.7 million, a decrease of 4% over the fourth quarter of fiscal 2014 and a decrease of 1% sequentially.

On a constant currency basis, total revenue in the fourth quarter of fiscal 2015 increased 2% compared to the year over year and sequential quarters. Software revenue in the fourth quarter of fiscal 2015 was $70.1 million, a decrease of 11% year-over-year and a decrease of 2% sequentially. On a constant currency basis, software revenue in the fourth quarter of fiscal 2015 decreased 5% compared to the year over year quarter and increased 1% on a sequential basis. Services revenue in the fourth quarter of fiscal 2015 was $80.7 million, an increase of 4% year-over-year and a decrease of 1% sequentially. On a constant currency basis, services revenue in the fourth quarter of fiscal 2015 increased 9% compared to the year over year quarter and increased 2% on a sequential basis.

For the full fiscal year, total revenues were $607.5 million, an increase of 4% over fiscal 2014.

On a constant currency basis, total revenues for the full fiscal year increased 6% over fiscal 2014. Software revenue for the full fiscal year was $283.3 million, a decrease of 4% from fiscal 2014. On a constant currency basis, software revenue for the full fiscal year decreased 1% over fiscal 2014. Services revenue for the full fiscal year was $324.3 million, an increase of 11% from fiscal 2014. On a constant currency basis, services revenue for the full fiscal year increased 13% over fiscal 2014.

On a GAAP basis, income from operations (EBIT) was $4.8 million for the fourth quarter compared to $24.9 million in the same period of the prior year. Non-GAAP income from operations (EBIT) decreased to $20.3 million in the fourth quarter of fiscal 2015 compared to $40.3 million in the fourth quarter of the prior year. On a sequential basis, non-GAAP income from operations (EBIT) decreased 20% in the fourth quarter of fiscal 2015.

On a GAAP basis, income from operations (EBIT) for the full fiscal year was $38.8 million. Non-GAAP income from operations (EBIT) decreased 31% to $104.7 million in fiscal 2015 compared to $151.9 million in fiscal 2014.

For the fourth quarter of fiscal 2015, Commvault reported net income of $3.4 million, a decrease of $12.3 million compared to the same period of the prior year.

Non-GAAP net income for the quarter decreased to $12.8 million, or $0.27 per diluted share, from $25.5 million, or $0.52 per diluted share, in the same period of the prior year.

For the full fiscal year, Commvault reported net income of $25.7 million, a decrease of $38.4 million compared to fiscal 2014.

Non-GAAP net income for the full fiscal year decreased to $66.0 million, or $1.40 per diluted share, from $96.2 million, or $1.94 per diluted share, in fiscal 2014.

Operating cash flow totaled $36.0 million for the fourth quarter of fiscal 2015 which was a decrease of $3.9 million, or 10%, compared to the fourth quarter of fiscal 2014. For the full fiscal year, operating cash flow was $123.8 million, an increase of 4% compared to $119.1 million for fiscal 2014. Total cash and short-term investments were $387.6 million as of March 31, 2015 compared to $482.7 million as of March 31, 2014. company made no borrowings against its line of credit during fiscal 2015.

Recent Business Highlights:

• On March 4, 2015, announced that top industry technology visionaries have joined its leadership team. The addition of leaders from companies such as Oracle, SAP, Microsoft, Cisco, PwC and EMC signals the continuation of Commvault Next, the company’s business transformation for sales, go-to-market strategies, pricing and packaging and technology innovation. Also announced that it had realigned its structure to create business units to more directly match how customers evaluate, deploy, operate, and purchase technology.
• On February 16, 2015, announced that Tech Mahindra, a specialist in digital transformation, consulting and business re-engineering, has chosen itsg backup solution to power its Backup-as-a-Service offerings for its alliances community.
• On February 12, 2015, announced that its data management platform would be available via European cloud hosting partners through a new strategic aggregator partnership with Crayon, in service provider licensing, management and consultancy. Under the partnership, Simpana,will be integrated into Crayon’s portfolio of leased software solutions for European-based cloud hosting service providers.
• On February 2, 2015, announced an arrangement with NaviSite, Inc., a Time Warner Cable company and provider of enterprise hosting, managed applications, managed messaging and managed cloud services, to extend the data protection capabilities of Simpana software to NaviSite’s NaviCloud portfolio. Commvault will provide data protection and management capabilities for customers using NaviCloud Director, an enterprise cloud Infrastructure-as-a-Service (IaaS) solution offered directly to customers via a self-service portal, and also delivered in conjunction with NaviSite’s portfolio of managed services.