Compellent: Fiscal 3Q08 Financial Results

(in US$ millions)	3Q07	3Q08	9 mo. 07	9 mo. 08
Revenues	13.4	24.6	34.3	63.9
*Growth*		+84%		*+86%*
Net income (loss)	(2.0)	0.5	(6.0)	(1.8)

Compellent Technologies, Inc. announced financial results for its third quarter ended September 30, 2008.

Highlights include:

First ever quarterly profit of $0.01 per share. Adjusting for the non-cash expense of stock compensation, quarterly profit was $0.03 per share.
Revenue of $24.6 million represented the twelfth consecutive quarterly increase. Revenue increased 84 percent from the third quarter of 2007 and 17 percent from the second quarter of 2008.
End users grew to 1,086 at September 30, 2008 compared with 740 at December 31, 2007.
Cash and investments totaled $95.0 million at September 30, 2008.

“We reported an excellent third quarter driven by strong demand for our cost-effective, energy-efficient storage,” said Phil Soran, President and CEO of Compellent. “We achieved quarterly profitability one year after completing our IPO, grew revenue 17 percent on a consecutive quarter basis and continued to add to our end user customer base. Users are looking for a more cost-efficient method for storing data, and our feature-rich solution addresses these requirements.”

Additional financial highlights include:

Net income totaled $464,000 in the third quarter of 2008, compared with a net loss of $2.0 million in the third quarter of 2007 and a net loss of $603,000 in the second quarter of 2008. Adjusting for the non-cash expense of stock compensation expense, net income for the third quarter of 2008 totaled $1.0 million compared to a net loss of $1.8 million in the third quarter of 2007.
Gross margin was 53.7 percent in the third quarter of 2008, an increase of 3.8 percentage points from the third quarter of 2007.
For the nine month period ended September 30, 2008, revenue totaled $63.9 million, up 86 percent compared with the same period in 2007. Net loss through the first nine months of 2008 was $1.8 million, or $(0.06) per share, compared with a net loss of $6.0 million, or $(1.40) per share, for the comparable period in 2007.
Product revenue in the third quarter 2008 totaled $19.5 million, a 75 percent increase from the third quarter of 2007.

“In addition to our steady financial progress, we have achieved other important milestones,” Mr. Soran continued. “We recently announced two new features, Live Volume and automated block-level tiered-storage for solid state drives. During the third quarter, Compellent received the ‘Best of VMworld 2008’ award in the ‘Hardware Virtualization’ category and was named the fastest growing storage area network vendor by Gartner. We are pleased with the momentum in our business and believe that our storage offering represents a convincing solution for IT managers focused on minimizing costs and improving efficiencies.”

To read the conference call transcript