CommVault: Fiscal 2Q13 Financial Results

CommVault Systems, Inc. announced its financial results for the second quarter ended September 30, 2012.

N. Robert Hammer, chairman, president and CEO, stated: "Our second quarter results continued our trend of delivering consistent, double-digit revenue and non-GAAP operating income growth. Our second quarter results were highlighted by year-over-year software revenue growth of 24% and non-GAAP operating income growth of 63%. Our financial and operational performance for the second quarter demonstrates the strong value we provide our customers and the sizeable market opportunity for our data and information management software platform and related services. The momentum we carried through the first half of fiscal 2013 should provide a strong foundation for continued revenue and earnings growth as we move into the second half of the fiscal year."

Total revenues for the second quarter of fiscal 2013 were $118.2 million, an increase of 21% over the second quarter of fiscal 2012 and an increase of 6% over the prior quarter. Software revenue in the second quarter of fiscal 2013 was $59.2 million, an increase of 24% year-over-year and an increase of 9% sequentially. Services revenue in the second quarter of fiscal 2013 was $58.9 million, an increase of 19% year-over-year and 3% sequentially.

Income from operations (EBIT) was $22.4 million for the second quarter, a 71% increase from $13.1 million in the same period of the prior year. On a sequential basis, income from operations (EBIT) increased 36% in the second quarter of fiscal 2013. Non-GAAP income from operations (EBIT) increased 63% to $28.8 million in the second quarter of fiscal 2013 compared to $17.7 million in the second quarter of the prior year. On a sequential basis, Non-GAAP income from operations (EBIT) increased 27% in the second quarter of fiscal 2013.

For the second quarter of fiscal 2013, CommVault reported net income of $13.9 million, an increase of $6.0 million compared to the same period of the prior year. Non-GAAP net income for the quarter increased 61% to $18.3 million, or $0.38 per diluted share, from $11.4 million, or $0.24 per diluted share, in the same period of the prior year.

Operating cash flow totaled $24.4 million for the second quarter of fiscal 2013 compared to $11.1 million in the second quarter of fiscal 2012. Total cash and short-term investments were $353.9 million as of September 30, 2012 compared to $300.2 million as of March 31, 2012. There were no share repurchases during the second quarter of fiscal 2013.

On October 25, 2012, 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, 2014. As of October 29, 2012, 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 $102.8 million remaining in the repurchase program.

Recent Business Highlights:

• On October 11, 2012, CommVault announced that its Simpana 9 data and information management platform is integrated with Microsoft Corp.’s Cloud OS, including Windows Server 2012, Hyper-V and Windows Azure.
• On September 13, 2012, CommVault announced that it is a recipient of a Rising Star award from the Global Technology Distribution Council (GTDC) in recognition of U.S. sales growth over the past year through distribution partners.