Compellent: Fiscal 2Q10 Financial Results

(in US$ millions)	2Q09	2Q10	6 mo. 09	6 mo. 10
Revenues	28.7	36.5	56.8	68.3
*Growth*		27%		*20%*
Net income (loss)	0.2	(0.2)	(1.3)	(1.0)

Compellent Technologies, Inc. announced record revenue of $36.5 million for the second quarter ended June 30, 2010. This represents a 27 percent increase from the same quarter in 2009.

Highlights for Q2 2010 include:

Revenue of $36.5 million represents a 15 percent sequential increase over the first quarter of 2010.
GAAP net loss was $172,000, or $0.01 loss per share. Non-GAAP net income, which excludes stock-based compensation expense, was $1.5 million, or $0.04 income per share.
Total installed base grew to 2,124 end-user customers, an increase of 182 new end-users from the previous quarter. Deferred revenue was $46.5 million, an increase of $8.3 million from December 31, 2009.
Cash and investments totaled $132.0 million, compared to $123.8 million at December 31, 2009.

"I’m very pleased with this growth quarter and our positive trajectory. These results reflect our technology leadership, business model advantages, world-class support and strong execution," said Phil Soran, president and CEO of Compellent. "In the last three months, 182 organizations chose Compellent over larger competitors’ systems because they recognized the value of an efficient storage platform with the future built in. Our vision of storage as the intelligent, easily-managed core of a virtualized data center continues to gain traction as enterprises adopt our Fluid Data architecture."

Additional Q2 highlights include:

Gross margin was 53.6 percent in the second quarter of 2010 compared with 53.7 percent in the second quarter of 2009.
Revenue totaled $68.3 million for the six months ended June 30, 2010, which is an $11.5 million, or 20 percent increase, compared to $56.8 million in the same period last year.
GAAP net loss was $1.0 million, or $0.03 loss per share for the six months ended June 30, 2010. Non-GAAP net income, which excludes stock-based compensation, was $2.0 million, or $0.06 income per share.
Product revenue from new end-users totaled 44 percent on a year-to-date basis compared with 56 percent from existing end-users.

"Whether integrating file and block storage or implementing services from corporate IT or cloud providers, enterprises need solutions that manage storage more efficiently," continued Mr. Soran. "Our proven tiered storage technology and automated, granular management of data, which we call Fluid Data, will continue to be catalysts for Compellent’s growth worldwide."

Comments

Abstracts of the earnings call transcript:

Phil Soran, president and CEO:
"Let me talk a bit about market trends that are helping fuel our growth. One, our wider recognition of the benefits of our two automated storage – tiered storage. Two, our persistent storage architecture. Three, the continuity for integrated block and file storage solutions and four the enterprise drive for its virtualization from the data center to the desktop."

Jack Judd, CFO:
"Our end-users at June 30, totaled 2,124 compared to 1,627 one year earlier and 1,942 at the end of March.
"Measured on a year-to-date basis, our product revenue was 56% from existing end-users compared to 44% from new end-users. Our international markets totaled 13% of revenue or $4.9 million during the second quarter 2010. We did see softness in selected geographies outside the United States, but we still see international markets as an area for additional future investment.
"Our current revenue forecast range for third quarter 2010 is $37 to $39 million. We expect our non-GAAP EPS to be between $0.03 and $0.05 income."