CommVault: Fiscal 3Q11 Financial Results

in US$ millions)	3Q10	3Q11	9 mo. 10	9 mo. 11
Revenues	70.7	83.6	197.6	225.2
*Growth*		18%		*14%*
Net income (loss)	5.4	7.3	12.6	16.2

CommVault Systems, Inc. announced its financial results for the third quarter ended December 31, 2010.

N. Robert Hammer, CommVault’s chairman, president and CEO, stated: "We achieved an excellent third quarter which was highlighted by record quarterly revenues of $83.6 million and record Non-GAAP operating income of $15.0 million. Our sequential software revenue growth of 17% was driven by significantly more enterprise deals (transactions greater than $100,000) and excellent results from our Americas and Australian operations. Our third quarter results validate the strategic relevance of our recently released Simpana 9 data and information management software platform, the overall strength of our sales and services organizations and our sales segmentation strategy launched last April. In the brief time since its release, Simpana 9 has exceeded all of our expectations and is allowing our customers to not only backup and protect their data, but to quickly and easily find, access and recover their data anywhere and at any time. We are still confident that we have the opportunity to deliver double-digit revenue and earnings growth for fiscal 2011."

Total revenues for the third quarter of fiscal 2011 were $83.6 million, an increase of 18% over the third quarter of fiscal 2010 and an increase of 11% over the prior quarter. Software revenue in the third quarter of fiscal 2011 was $41.8 million, increases of 19% year-over-year and 17% sequentially. Services revenue in the third quarter of fiscal 2011 was $41.9 million, increases of 18% year-over-year and 6% sequentially.

Income from operations (EBIT) was $10.5 million for the third quarter of fiscal 2011 compared to $9.1 million in the same period of the prior year. Non-GAAP income from operations (EBIT) increased 18% in the third quarter of fiscal 2011 to $15.0 million compared to $12.8 million in the third quarter of the prior year.

For the third quarter of fiscal 2011, CommVault reported net income of $7.3 million, an increase of $1.8 million compared to the same period of the prior year. Non-GAAP net income in the third quarter of fiscal 2011 was $10.0 million, or $0.22 per diluted share, compared to $8.7 million, or $0.19 per diluted share, in the same period of the prior year.

Operating cash flow totaled $10.0 million for the third quarter of fiscal 2011 compared to $11.5 million in the third quarter of fiscal 2010. Total cash and short-term investments were $193.5 million as of December 31, 2010 compared to $174.6 million as of March 31, 2010.

CommVault did not repurchase any shares of common stock under its share repurchase plan during the third quarter of fiscal 2011. As of February 1, 2011, CommVault has repurchased in total $71.7 million of common stock (4.4 million shares) out of the $120.0 million in total that is authorized under its share repurchase program. As a result, CommVault may repurchase the remaining $48.3 million of its common stock under the repurchase program through March 31, 2012.

In the first nine months of fiscal 2011, certain senior executives, directors and employees have, in the aggregate, exercised approximately 805,000 stock options which were approaching the end of their 10-year life.

Recent Business Highlights:

On January 28, 2011, CommVault was positioned in the Leaders quadrant in Gartner’s Magic Quadrant for Enterprise Disk-Based Backup/Recovery.
On December 14, 2010, CommVault announced that its CommVault Simpana 9 software garnered the No. 1 ranking in an independent industry guide evaluating virtual server protection software, which was published by research firm DCIG on December 14, 2010.
On December 7, 2010, CommVault announced that CommVault and Dell will extend Intelligent Data Management Solutions across Dell DX Object Storage and PowerVault DL Platforms.
On November 30, 2010, CommVault announced that it extended its singular approach to data management and protection for SAP environments with its release of Simpana 9 software, which delivers faster backups, more granular file recoveries and SAP ArchiveLink integration for single-click transfer of files and data from SAP applications to CommVault software.
On November 8, 2010, CommVault announced that it has been positioned in the Challengers quadrant in Gartner’s Magic Quadrant for Enterprise Information Archiving (EIA), which was published October 29, 2010.2