Compellent: Fiscal 1Q10 Financial Results

Compellent Technologies, Inc. announced its financial results for the first quarter ended March 31, 2010.

Revenue totaled $31.8 million, within the range of the company’s revised guidance issued on April 7, 2010.

Highlights for Q1 2010 include:

• Revenue increased 13 percent from the first quarter of 2009 and decreased 12 percent from the fourth quarter of 2009.
• Gross margin was 54.8 percent, a 200 basis point increase from 52.8 percent in the first quarter of 2009 and a 190 basis point improvement from 52.9 percent in the fourth quarter of 2009.
• GAAP net loss was $780,000, or $0.02 net loss per share. Non-GAAP net income, which excludes stock-based compensation expense, was $544,000, or $0.02 net income per share.
• Cash and investments totaled $131.3 million at March 31, 2010, compared with $123.8 million at December 31, 2009.  The company generated $8.8 million in cash from operations.
• Deferred revenue at March 31, 2010 was $41.5 million, an increase of $3.3 million from December 31, 2009 and $17.3 million from March 31, 2009.
• Total installed end-user base grew to 1,942 customers, an increase of 130 new users from the previous quarter.

"First quarter results were consistent with the updated guidance we provided in early April," said Phil Soran, President and CEO of Compellent. "Revenue declined on a sequential basis, but the remaining components of our income statement improved. We had a substantial increase in gross margin and reduced growth in operating expenses compared to recent quarters. Our first quarter new customer growth demonstrates our strength."

"Looking ahead, we remain confident in the growth prospects for Compellent," Mr. Soran continued. "We continue to see strong demand from midsized and larger enterprises who appreciate the benefits of our unique storage solution. The introduction of our zNAS unified storage offering announced yesterday is one example of new products that we anticipate will expand our addressable market. We believe the efficiency of our business model and the strong relationships we enjoy with our channel partners are critical to our success. We have the financial resources to pursue our growth strategy."