3Par: Fiscal 4Q10 Financial Results

3PAR, Inc. reported results for the fourth quarter of fiscal year 2010, which ended March 31st, 2010.

Revenue for the fourth quarter was $53.7 million, an increase of 11% as compared to revenue of $48.5 million for the same period in the prior year, and an increase of 7% as compared to $50.1 million in the prior quarter, which ended December 31st, 2009.

For the fourth quarter of fiscal 2010, GAAP net loss was $99,000, or $0.00 loss per share, as compared to $907,000, or $0.01 loss per share for the same period in the prior year. Non-GAAP net income, which excludes the impact of stock-based compensation expense, was $2.6 million, or $0.04 earnings per share for the fourth quarter of fiscal 2010, as compared to $906,000, or $0.01 earnings per share, for the same period in the prior year.

Revenue for the fiscal year ended March 31st, 2010 was $194.3 million, an increase of 5% from $184.7 million reported in the prior fiscal year. GAAP net loss for the fiscal year 2010 was $3.2 million, or $0.05 loss per share, as compared to $959,000, or $0.02 loss per share, in the fiscal year 2009. Non-GAAP net income for the fiscal year 2010 was $6.2 million, or $0.10 earnings per share, as compared to $5.7 million, or $0.09 earnings per share in the fiscal year 2009.

“We believe these results demonstrate our ability to exercise financial discipline as, over the course of the fiscal year, we were able to successfully manage expenses while we continued innovating new technologies – as evidenced by more than 20 new product introductions – and expanding internationally, with new operations in India, Australia, and Hong Kong,” said David Scott, Chief Executive Officer. “The support of our utility storage platform for comprehensive multi-tenancy with a compelling total cost of ownership allows our customers to deploy cloud computing service delivery models to achieve their business goals through delivering enterprise IT as a utility service.”

Additional 4Q10 Financial Information:

• 3PAR reports operating income (loss), net income (loss), and earnings (loss) per share on a GAAP and on a non-GAAP basis, which excludes the impact of stock-based compensation expense.
• GAAP operating loss in the fourth quarter of fiscal 2010 was $104,000, as compared to $474,000 in the third quarter of fiscal 2010. GAAP operating loss was 0% of revenue in the fourth quarter of fiscal 2010, as compared to 1% in the third quarter of fiscal 2010. Non-GAAP operating income in the fourth quarter of fiscal 2010 was $2.6 million, as compared to $2.0 million in the third quarter of fiscal 2010. Non-GAAP operating income was 5% of revenue in the fourth quarter of fiscal 2010, as compared to 4% in the third quarter of 2010. GAAP net loss in the fourth quarter of fiscal 2010 was $99,000, as compared to $528,000 in the third quarter of fiscal 2010. Non-GAAP net income in the fourth quarter of fiscal 2010 was $2.6 million, as compared to $1.9 million in the third quarter of fiscal 2010.
• GAAP loss per share in the fourth quarter of fiscal 2010 was $0.00 per share on 62.2 million basic and diluted shares outstanding, as compared to $0.01 per share in the third quarter of fiscal 2010 on 61.9 million basic and diluted shares outstanding. Non-GAAP earnings per share in the fourth quarter of fiscal 2010 was $0.04 per share on 64.7 million diluted shares outstanding, as compared to $0.03 on 64.4 million diluted shares outstanding in the third quarter of fiscal 2010.
• Non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share are computed net of stock-based compensation. In the fourth quarter of fiscal 2010, the charges related to stock-based compensation were $2.7 million, as compared to $2.5 million in the third quarter of 2010.