Compellent: Fiscal 2Q09 Financial Results

Compellent Technologies, Inc. announced it set several financial records in the second quarter, as demand for its cost-effective, innovative storage solutions remains strong worldwide.

Highlights of the second quarter ended June 30, 2009 include:

• Revenue grew 37 percent from the second quarter of 2008 and 2 percent from the first quarter of 2009 to $28.7 million. This represented the company’s 15th consecutive quarterly increase.
• End-user customers increased by 115 from 1,376 at March 31, 2009 to 1,491 at June 30, 2009.
• GAAP net income totaled $247,000, or $0.01 per share.  Non-GAAP net income was $1.5 million, or $0.05 per share, adjusting for non-cash stock compensation expense.
• Cash and investments were $104.6 million compared with $103.4 million at March 31, 2009.
• International revenue grew 79 percent from the second quarter of 2008 and 29 percent from the first quarter of 2009 to $5.7 million.

"The record quarter is validation of our efficient product and business model, which delivered new customer orders and strong revenue growth as we continued to expand our business globally even in this challenging economy," said Phil Soran, president and CEO of Compellent. "Early signs of market stabilization favor Compellent as mid-size enterprises continue to deploy our more efficient modular, scalable virtualized storage solution as opposed to bolt-on or brick-based products, which are costly and cumbersome to manage over time."

"Other accomplishments in the quarter that demonstrate the strength of our business include launching our solid-state drive solution, expanding in key markets throughout Europe, and receiving multiple industry awards for our innovative approach to channel sales. Our business momentum demonstrates the benefits of our value proposition over the industry status quo, which makes us optimistic about the prospects for Compellent," concluded Mr. Soran.

Additional Q2 financial highlights include:

• Gross margin of 53.7 percent compared with 52.8 percent in the first quarter of 2009, primarily due to strong margins on support and services.
• Operating expenses increased 23 percent from a year ago, reflecting continued investments in development, sales and support. Operating profit was break-even compared with an operating loss of $1.2 million in the second quarter of 2008.
• Product revenue from new end users, measured on a year-to-date basis, was 51 percent compared to 49 percent from current end users.