3par: Fiscal 1Q10 Financial Results

3PAR, Inc. reported results for the first quarter of fiscal year 2010, which ended June 30th, 2009. Revenue for the first quarter was $44.5 million, an increase of 4% compared to revenue of $43.0 million for the same period a year ago, and a decrease of 8% compared to $48.5 million in the prior quarter, which ended March 31st, 2009.

For the first quarter of fiscal 2010, GAAP net loss was $1.8 million, or ($0.03) per share, compared to GAAP net income of $678,000, or $0.01 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 first quarter of fiscal 2010 was $41,000, or $0.00 per share, compared to $2.0 million, or $0.03 per share, for the same period in the prior year.

"Though disappointed by our revenue shortfall against expectations, we are pleased that we grew year-over-year in a difficult economic climate and that we continued to take market share," said David Scott, Chief Executive Officer. "We also demonstrated our ability to control expenses prudently, which, combined with a strong gross margin performance, allowed us to maintain profitability on a non-GAAP basis."

Additional First Quarter Fiscal 2010 Financial Information:
3PAR reports operating income (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 first quarter of fiscal 2010 was $2.1 million, or 5% of revenue compared to $1.2 million in the fourth quarter of fiscal 2009, or 2% of revenue. Non-GAAP operating loss in the first quarter of fiscal 2010 was $248,000, or 1% of revenue, compared to a Non-GAAP operating income of $609,000, or 1% of revenue, in the fourth quarter of fiscal 2009. GAAP net loss for the first quarter of fiscal 2010 was $1.8 million compared to $907,000 in the fourth quarter of fiscal 2009. Non-GAAP net income in the first quarter of fiscal 2010 was $41,000, compared to a Non-GAAP net income of $906,000 in the fourth quarter of fiscal 2009.
• GAAP EPS for the first quarter of fiscal 2010 was ($0.03) on 61.3 million shares outstanding, compared to ($0.01) in the fourth quarter of fiscal 2009 on 60.9 million shares outstanding. Non-GAAP EPS in the first quarter of fiscal 2010 was $0.00 on 63.7 million diluted shares outstanding compared to $0.01 on 63.4 million diluted shares outstanding in the fourth quarter of fiscal 2009.
• Non-GAAP operating income, non-GAAP net income, and non-GAAP EPS are computed net of stock-based compensation. In the first quarter of fiscal 2010 and fourth quarter of fiscal 2009, the charges related to stock-based compensation were $1.8 million in each period.