CommVault: Fiscal 4Q10 Financial Results

CommVault Systems, Inc. announced its financial results for the fourth quarter and fiscal year ended March 31, 2010.

N. Robert Hammer, CommVault’s chairman, president and CEO stated: "Our solid results in the fourth quarter were highlighted by strong revenue growth, improved operating margins and significant increases in both earnings and operating cash flows. Our 31% growth in total revenues in the fourth quarter compared to the prior year was driven by a record number of enterprise software deals. Our solid finish to fiscal 2010 demonstrates the strength of our sales and services organizations as well as the increasing strategic relevance of our Simpana data and information management software platform. We believe that we are entering fiscal 2011 with excellent momentum driven by improving market conditions, stronger distribution capabilities and a best in class software platform. We are well positioned for continued market share gains and consistent revenue growth."

Total revenues for the fourth quarter of fiscal 2010 were $73.4 million, an increase of 31% over the fourth quarter of fiscal 2009 and an increase of 4% over the prior quarter. Software revenue in the fourth quarter of fiscal 2010 was $36.7 million, an increase of 33% year-over-year and up 4% sequentially. Services revenue in the fourth quarter of fiscal 2010 was $36.8 million, up 28% year-over-year and 4% sequentially.

Total revenues for the full fiscal year were $271.0 million, an increase of 16% over fiscal 2009. Software revenue for the full fiscal year was $134.5 million, an increase of 11% over fiscal 2009. Services revenue for the full fiscal year was $136.5 million, an increase of 21% over fiscal 2009.

Income from operations (EBIT) was $10.1 million for the fourth quarter, a 373% increase from $2.1 million in the same period of the prior year. Non-GAAP income from operations (EBIT) increased 158% to $13.9 million in the fourth quarter of fiscal 2010 compared to $5.4 million in the fourth quarter of the prior year. On a sequential basis, Non-GAAP income from operations (EBIT) increased 9% in the fourth quarter of fiscal 2010.

Income from operations (EBIT) for the full fiscal year was $31.8 million, an increase of 55% over fiscal 2009. Non-GAAP income from operations (EBIT) increased 47% to $47.3 million in fiscal 2010 compared to $32.1 million in fiscal 2009.

For the fourth quarter of fiscal 2010, CommVault reported net income of $5.8 million, an increase of $5.6 million compared to the same period of the prior year. Non-GAAP net income for the quarter increased 151% to $9.5 million, or $0.21 per diluted share, from $3.8 million, or $0.09 per diluted share, in the same period of the prior year.

For the full fiscal year, CommVault reported net income of $18.4 million, an increase of $6.1 million compared to fiscal 2009. Non-GAAP net income for the full fiscal year increased 38% to $32.3 million, or $0.72 per diluted share, from $23.5 million, or $0.53 per diluted share, in fiscal 2009.

Operating cash flow totaled $22.2 million for the fourth quarter of fiscal 2010 compared to $6.5 million in the fourth quarter of fiscal 2009. Operating cash flow totaled $57.2 million for the full fiscal year compared to $43.1 million in fiscal 2009. Total cash and short-term investments were $174.6 million as of March 31, 2010 compared to $105.2 million as of March 31, 2009.

As of May 10, 2010, CommVault has repurchased $46.4 million of common stock (3.2 million shares) out of the $80.0 million in total that is authorized under its share repurchase program. As a result, CommVault may repurchase the remaining $33.6 million of its common stock under the repurchase program, which is currently set to expire on March 31, 2011.

Certain executive officers, Directors and employees of CommVault currently hold approximately 800,000 in-the-money stock options that will expire in the next 12 months. CommVault expects that all of these stock options will be exercised prior to their expiration.

Recent Business Highlights:

• On April 5, 2010, CommVault announced that its Simpana software now supports Microsoft Exchange Server 2010 to ease migrations to this latest Exchange release while enabling customers to easily protect, manage, archive and recover mission-critical data stored in Exchange email repositories.
• On March 24, 2010, CommVault announced SnapProtect Integration with EqualLogic to simplify and automate data management for Dell PowerVault DL2100. This latest Simpana software enhancement provides application aware Snapshot Management and enables Dell PowerVault users to leverage secure, cost-effective tier of cloud storage.