CommVault: Fiscal 2Q12 Financial Results

CommVault Systems, Inc. announced its financial results for the second quarter ended September 30, 2011.

N. Robert Hammer, CommVault’s chairman, president and CEO stated: "We continued our strong start to fiscal year 2012 with an excellent second quarter which was highlighted by year over year total revenue growth of 30%, software revenue growth of 34% and non-GAAP EBIT growth of 37%. Our 34% year over year growth in software revenue was driven by a combination of strong sales execution and increasing customer demand for our Simpana 9 software. We continue to win new business and strengthen relationships with enterprise customers who work collaboratively with CommVault to enable them to reduce costs and improve operational efficiencies. In the first half of fiscal 2012, we were able to accelerate revenues and improve operating margins due to the strength of our products and services offerings, good underlying market demand and our increasing distribution leverage. The progress we made in our business in the first half of fiscal 2012 should provide a good foundation for growth as we move into the second half of the fiscal year."

Total revenues for the second quarter of fiscal 2012 were $97.5 million, an increase of 30% over the second quarter of fiscal 2011 and an increase of 6% over the prior quarter. Software revenue in the second quarter of fiscal 2012 was $47.8 million, an increase of 34% year-over-year and 9% sequentially. Services revenue in the second quarter of fiscal 2012 was $49.6 million, increases of 26% year-over-year and 4% sequentially.

Income from operations (EBIT) was $13.1 million for the second quarter, a 42% increase from $9.2 million in the same period of the prior year. Non-GAAP income from operations (EBIT) increased 37% to $17.7 million in the second quarter of fiscal 2012 compared to $12.9 million in the second quarter of the prior year. On a sequential basis, Non-GAAP income from operations (EBIT) increased 16% in the second quarter of fiscal 2012.

For the second quarter of fiscal 2012, CommVault reported net income of $7.9 million, an increase of $2.5 million compared to the same period of the prior year. Non-GAAP net income for the quarter increased 33% to $11.4 million, or $0.24 per diluted share, from $8.6 million, or $0.19 per diluted share, in the same period of the prior year.

Operating cash flow totaled $11.1 million for the second quarter of fiscal 2012 compared to $7.5 million in the second quarter of fiscal 2011. Total cash and short-term investments were $219.9 million as of September 30, 2011 compared to $218.3 million as of March 31, 2011.

During the second quarter of fiscal 2012, CommVault repurchased $45.6 million of common stock (1.32 million shares) under its share repurchase program. On October 27, 2011, the Board of Directors authorized a $50.0 million increase to the existing stock repurchase program and extended the expiration of the stock repurchase program to March 31, 2013. As of November 1, 2011, CommVault has repurchased $117.2 million of common stock (5.74 million shares). With the additional $50.0 million authorized by the Board of Directors, there is $52.8 million remaining in the repurchase program.

Recent Business Highlights:

• On September 26, 2011, CommVault announced that it has been named a winner of the Midsize Enterprise Summit West 2011 Innovation Awards in the categories of Best Midmarket Solution, Software and Best Midmarket Solution, Services. CommVault was honored among a field of top IT vendors and services providers.
• On September 21, 2011, CommVault announced that its CommVault Simpana 9 software has been named the winner of the Deduplication Product of the Year in Storage Magazine‘s 2011 Storage Awards (Storries VIII).
• On August 17, 2011, CommVault announced that it introduced a new Service Provider Partner component of its North American PartnerAdvantage program, designed specifically to assist MSPs in streamlining the deployment and management of cloud-based services. With enhanced tools, marketing and training support, CommVault’s new PartnerAdvantage Service Provider program assists MSPs in driving margin revenue from managed data protection services while ensuring uptime for customers.