CommVault: Fiscal 3Q12 Financial Results

(in US$ millions)	3Q11	3Q12	9 mo. 11	9 mo. 12
Revenues	83.6	103.6	225.2	292.6
*Growth*		24%		*30%*
Net income (loss)	7.3	7.2	16.2	22.1

CommVault Systems, Inc. announced its financial results for the third quarter ended December 31, 2011.

N. Robert Hammer, CommVault’s chairman, president and CEO, stated: "We achieved an excellent third quarter which was highlighted by record quarterly revenues of $103.6 million and record Non-GAAP operating income of $19.6 million. Our year-over-year software revenue growth of 23% was driven by accelerating demand and brand recognition of our Simpana 9 software suite, excellent sales execution from our Americas and EMEA operations and continued market share gains. We continue to deliver accelerating revenue and non-GAAP earnings growth while still making strategic investments to expand our global sales, marketing, services and support capabilities to better position the company for the longer term."

Total revenues for the third quarter of fiscal 2012 were $103.6 million, an increase of 24% over the third quarter of fiscal 2011 and an increase of 6% over the prior quarter. Software revenue in the third quarter of fiscal 2012 was $51.4 million, an increase of 23% year-over-year and 8% sequentially. Services revenue in the third quarter of fiscal 2012 was $52.2 million, increases of 25% year-over-year and 5% sequentially.

Income from operations (EBIT) was $12.3 million for the third quarter, an 18% increase from $10.5 million in the same period of the prior year. Non-GAAP income from operations (EBIT) increased 31% to $19.6 million in the third quarter of fiscal 2012 compared to $15.0 million in the third quarter of the prior year. On a sequential basis, Non-GAAP income from operations (EBIT) increased 11% in the third quarter of fiscal 2012.

For the third quarter of fiscal 2012, CommVault reported net income of $7.2 million, a decrease of $0.1 million compared to the same period of the prior year. Non-GAAP net income for the quarter increased 27% to $12.7 million, or $0.27 per diluted share, from $10.0 million, or $0.22 per diluted share, in the same period of the prior year.

Operating cash flow totaled $27.7 million for the third quarter of fiscal 2012 compared to $10.0 million in the third quarter of fiscal 2011. Total cash and short-term investments were $257.2 million as of December 31, 2011 compared to $218.3 million as of March 31, 2011. There were no share repurchases during the third quarter of fiscal 2012, which leaves $52.8 million remaining in the existing repurchase plan available through March 31, 2013.

Recent Business Highlights:

Announced its next-generation Singular Information Management innovations that further empower Simpana software customers to lower data management costs, reduce business and compliance risks and easily extract data for better decision making with anywhere, anytime information access.
On December 20, 2011, announced the formation of a new Enterprise Consulting Services (ECS) practice within its Global Services organization. The ECS practice is designed to help global enterprises define a transformation roadmap that sets out the path to achieve modern data management and maximize investment in CommVault Simpana software.
On December 14, 2011, announced that it was positioned in the Challengers quadrant in Gartner’s report, Magic Quadrant for Enterprise Information Archiving.
On November 7, 2011, announced that it is expanding its customer service operations with the opening of a customer support center in Reading, U.K. and adding approximately 30 new staff members.