CommVault: Fiscal 3Q10 Financial Results

(in US$ millions)	3Q09	3Q10	9 mo. 09	9 mo. 10
Revenues	60.1	70.7	178.4	197.6
*Growth*		18%		*11%*
Net income (loss)	3.9	5.4	12.1	12.6

CommVault announced its financial results for the third quarter ended December 31, 2009.

N. Robert Hammer, CommVault’s chairman, president and CEO stated: “We delivered an excellent third quarter which was highlighted by both record revenues and EBIT. Our 18% year over year growth in total revenue was driven by a record number of enterprise deals during the quarter, increasing demand for our Simpana 8 suite of products and excellent results from our services organization. Our third quarter performance validates our continued market leadership, technological innovation and operating discipline.”

Total revenues for the third quarter of fiscal 2010 were $70.7 million, an increase of 18% over the third quarter of fiscal 2009 and an increase of 6% over the prior quarter. Software revenue in the third quarter of fiscal 2010 was $35.2 million, an increase of 12% year-over-year and up 5% sequentially. Services revenue in the third quarter of fiscal 2010 was $35.5 million, up 24% year-over-year and 7% sequentially.

Income from operations (EBIT) was $9.1 million for the third quarter, a 48% increase from $6.1 million in the same period of the prior year. Non-GAAP income from operations (EBIT) increased 41% to $12.8 million in the third quarter of fiscal 2010 compared to $9.1 million in the third quarter of the prior year. On a sequential basis, Non-GAAP income from operations (EBIT) increased 13% in the third quarter of fiscal 2010.

For the third quarter of fiscal 2010, CommVault reported net income of $5.4 million, an increase of $1.6 million compared to the same period of the prior year. Non-GAAP net income for the quarter increased 33% to $8.7 million, or $0.19 per diluted share, from $6.6 million, or $0.15 per diluted share, in the same period of the prior year.

Operating cash flow totaled $11.5 million for the third quarter of fiscal 2010 compared to $8.4 million in the third quarter of fiscal 2009. Total cash and short-term investments were $148.6 million as of December 31, 2009 compared to $105.2 million as of March 31, 2009.

CommVault did not repurchase any shares of common stock under its share repurchase plan during the third quarter of fiscal 2010. As of February 3, 2010, CommVault has repurchased $40.2 million of common stock (2,853,305 shares) out of the $80.0 million in total that is authorized under its share repurchase program. On January 27, 2010, the Board of Directors authorized a one year extension to the existing $80.0 million share repurchase program that was scheduled to expire on March 31, 2010. As a result, CommVault may repurchase the remaining $39.8 million of its common stock until March 31, 2011.

Recent Business Highlights:

On February 2, 2010, Storage Magazine/SearchStorage.com recognized CommVault’s Simpana Software Suite with top honors by awarding it the gold medal in the 2009 ‘Product of the Year’ awards in the backup and disaster recovery software category.
On February 1, 2010, CommVault announced an integrated cloud storage connector for its Simpana software , which will enable customers to move on-premises backup and archive data securely, reliably and transparently into, and out of, private and public cloud storage without complex scripting or the addition of costly, disparate cloud gateway appliances.
On January 25, 2010, CommVault announced that its Simpana Software Suite was awarded the gold award, which is the top award, in the eDiscovery (EDD) Services Preservation category in the seventh annual Law Technology News Awards.
On December 21, 2009, CommVault and Group Logic, a leading provider of network software solutions, announced they are teaming to extend file archiving to Mac environments for improved space management and storage hardware cost savings.
On December 14, 2009, CommVault announced it has entered into a partnership with Informatica to deliver a fully integrated archiving solution that extends support to leading databases and applications, including Microsoft SQL Server, Oracle , DB2, SAP , PeopleSoft, Siebel and other custom or legacy applications.
On December 8, 2009, CommVault announced it has completed Windows Server 2008 R2 certification and now supports Windows 7 to ensure that CommVault Simpana software seamlessly operates with the latest versions of Microsoft Corp.’s flagship server and desktop operating systems.