Compellent: Fiscal 1Q08 Financial Results

Compellent Technologies, Inc. announced its financial results for the first quarter ended March 31, 2008. Revenue for the first quarter of 2008 totaled $18.3 million, an increase of 107 percent compared with $8.9 million in the first quarter of 2007, and up nine percent from the fourth quarter of 2007. This represents the tenth consecutive quarter of sequential revenue growth.

Gross margin was 52.2 percent, an increase of 6.0 percentage points from the first quarter of 2007 and 0.8 percentage points above the fourth quarter of 2007. Net loss was $(1.6) million, or $(0.05) per share, compared with a net loss of $(2.1) million, or $(0.51) per share in the first quarter of 2007.

“Our industry is at a unique point where organizations everywhere are realizing they need to be both fiscally responsible and environmentally conscious to remain competitive,” said Phil Soran, President and CEO of Compellent. “Compellent’s first quarter results highlight the strong demand for our virtualized storage offerings as the foundation for energy-efficient, virtual data centers.”

Additional financial highlights for the first quarter of 2008 include:

• The number of end users totaled 829 at March 31, 2008, compared with 740 at December 31, 2007.
• Product revenue totaled $14.9 million, an increase of 100 percent from the first quarter of 2007. Product support and services revenue totaled $3.4 million, an increase of 140 percent from the first quarter of 2007.
• Revenue from new customers represented 47 percent of product revenue during the quarter, while Compellent’s existing customer base represented 53 percent of product revenue during the quarter.
• Current and long-term deferred revenue was $12.5 million at March 31, 2008 compared to $10.5 million at December 31, 2007.
• At March 31, 2008, Compellent had cash and investments of $93.1 million.

“Teaming with our all-channel sales network, we continue to deliver customer-driven networked storage products that enable small-to-mid-sized companies to attain the data management and recovery capabilities of much larger enterprises,” continued Mr. Soran. “Along the way, these end-users are reducing their storage and energy costs while not having to add staffing or other IT resources.”

Compellent Technologies, Inc.