3PAR: Fiscal 4Q08 Financial Results

3PAR Inc. reported results for the fourth quarter and full year of fiscal year 2008 ended March 31, 2008. Revenue for the fourth fiscal quarter was $35.5 million, an increase of 204% compared to revenue of $11.7 million for the same period a year ago and an increase of 15% compared to $30.8 million in the prior quarter, which ended December 31, 2007.

For the fourth fiscal quarter, GAAP net loss was $1.2 million, or ($0.02) per share compared to GAAP net loss of $11.7 million, or ($0.65) per share for the same period in the prior year. Non-GAAP net income, which excludes the impact of stock-based compensation expense, for the fourth fiscal quarter of 2008 was $60,000, or $0.00 per share, compared to non-GAAP net loss of $11.3 million, or ($0.63) per share for the same period in the prior year.

Revenue for the fiscal year ended March 31, 2008 was $118.0 million, an increase of 78% from $66.2 million reported in the prior year. GAAP net loss for the full fiscal year 2008 was $10.1 million, or $(0.30) per share, compared to a net loss of $15.5 million, or ($0.87) per share in 2007. Non-GAAP net loss for the full fiscal year 2008 was $6.5 million, or ($0.19) per share, compared to a non-GAAP net loss of $13.7 million, or ($0.77) per share in fiscal 2007.

“We are pleased to see 3PAR deliver another strong revenue growth quarter.” said David Scott, Chief Executive Officer. “We continue to further penetrate key accounts as customers better realize the capital and operational savings benefits of utility storage.  We are also pleased that we reached break even net income on a non-GAAP EPS basis ahead of our expectations.”

Additional Fourth Quarter Fiscal 2008 Financial Information
3PAR reports operating loss, net income (loss), and earnings (loss) per share (EPS) on a GAAP and on a non-GAAP basis, which excludes the impact of stock-based compensation expense. The non-GAAP measures are described in greater detail below and are reconciled to the corresponding GAAP measures in the accompanying financial tables.

GAAP operating loss for the fourth quarter of fiscal 2008 was $2.4 million, or 7% of revenue. This compares to GAAP operating loss of $2.3 million, or 8% of revenue, in the third quarter of fiscal 2008. Non-GAAP operating loss in the fourth quarter of fiscal 2008 was $1.1 million, or 3% of revenue. This compares to non-GAAP operating loss of $1.1 million, or 4% of revenue, in the third quarter of fiscal 2008. GAAP net loss for the fourth quarter of fiscal 2008 was $1.2 million as compared to $1.9 million in the third quarter of fiscal 2008. Non-GAAP net income in the fourth quarter of fiscal 2008 was $60,000 compared to Non-GAAP net loss of $664,000 in the third quarter of fiscal 2008.

GAAP basic and diluted EPS for the fourth quarter of fiscal 2008 was ($0.02) on 60.0 million weighted average shares outstanding, compared to ($0.05) for the third quarter of fiscal 2008 on 39.8 million weighted average shares outstanding. Non-GAAP basic and diluted EPS in the fourth quarter of fiscal 2008 was $0.00, compared to ($0.02) in the third quarter of fiscal 2008.

Non-GAAP operating loss, non-GAAP net income (loss), and non-GAAP EPS are computed net of stock-based compensation. The stock-based compensation expenses recorded in each of the fourth and third quarters of fiscal 2008 was $1.2 million.