OEM Dell Represents as Much as 25% of CommVault’s Revenues

According to a recent SEC filing by CommVault Systems, Inc., its sales to OEM Dell accounted for 25% of revenues (or $35.4 million) for the six months ended September 30, 2010 and 23% of revenues (or $29.2 million) for the six months ended September 30, 2009.

HDS is also one of its main OEMs.

Note that both of them have no obligation to recommend or offer the CommVaul’s software "exclusively or at all, and they have no minimum sales requirements and can terminate our relationship at any time."

The company also has non-exclusive distribution agreements covering the North American commercial and U.S. Federal Government market with Arrow Enterprise Computing Solutions, generating 24% of revenues in the six months ended September 30, 2010 and 25% in the six months ended September 30, 2009.

Revenue contribution from other huge distributor Avnet was not material in the six months ended September 30, 2010.

CommVault added:" If Arrow or Avnet were to discontinue or reduce the sales of our products or if our agreements with Arrow or Avnet were terminated, and if we were unable to take back the management of our reseller channel or find another North American distributor to replace Arrow or Avnet, then it could have a material adverse effect on our future revenues."