Compellent: Fiscal 4Q09 Financial Results

Compellent Technologies, Inc. announced record fourth quarter and full year 2009 revenue, reflecting the growing acceptance by new midsize and enterprise customers of Compellent’s efficient storage for their datacenters. Compellent’s Fluid Data architecture automates the movement and management of data throughout its lifecycle to adapt to changing business conditions, resulting in significant cost savings for end users.

Highlights for Q4 2009 include:

• Revenue increased 35 percent from the fourth quarter of 2008 and 13 percent from the third quarter of 2009 to $36.3 million.
• Total installed end-user base grew to 1,812 customers, an increase of 185 new users from the previous quarter.
• GAAP net income totaled $1.3 million, or $0.04 per share. Non-GAAP net income was $2.4 million, or $0.07 per share, adjusting for non-cash stock compensation expense.
• Cash and investments totaled $123.8 million at year-end compared with $109.0 million at September 30, 2009. The company generated $4.4 million in cash from operations and $10.7 million in net proceeds from the follow-on stock offering completed during the quarter.
• Deferred revenue at December 31, 2009 was $38.2 million, an increase of $6.5 million from September 30, 2009 and $17.6 million from December 31, 2008.

"This strong fourth quarter performance capped another successful year at Compellent," said Phil Soran, president and CEO of Compellent. "We generated record results in revenue, end-user customers, earnings and cash. This demonstrates the positive impact that our Fluid Data architecture has on customer environments, the strength of our efficient business model, and our ability to drive revenue and profit with our channel partners. During the quarter, we continued to see our target mid-sized enterprise market as well as larger enterprises choosing Compellent over incumbent storage vendors."

Full year 2009 financial highlights include:

• 2009 revenue grew by 38 percent to $125.3 million from $90.9 million in 2008.
• GAAP operating income was $3.7 million, or 3 percent of revenue, compared to GAAP operating loss of $3.2 million in 2008. Non-GAAP operating income was $7.9 million, or 6 percent of revenue, compared to non-GAAP operating loss of $1.0 million in 2008.
• GAAP net income was $4.8 million, or $0.15 per share, in 2009 versus a GAAP net loss of $416,000, or $(0.01) per share, in 2008.

Mr. Soran concluded: "As we look ahead, we remain positive about the growing demand for our innovative storage technology and we continue to build our presence in new markets, taking mind and market share from the competition. Our solution has broad appeal and is attracting strong interest from larger organizations and those considering emerging applications for cloud computing. As always, we remain focused on generating profits and cash, while making the investments required to maximize future growth and profit."

Compellent’s Fluid Data storage helps eliminate the scalability challenges and dead-end growth paths common with other storage platforms that cannot be as easily expanded or upgraded. By infusing its enterprise storage system with built-in automation and intelligence, Compellent enables data to flow throughout an organization in a way that is directly aligned with the needs of the business. As a result, business applications are implemented faster, new technologies are quickly deployed, and data is automatically secured against downtime and disaster.