CommVault: Fiscal 1Q16 Financial Results

CommVault Systems Inc. announced its financial results for the first quarter ended June 30, 2015.

N. Robert Hammer, chairman, president and CEO stated: “Our fiscal first quarter proved to be more challenging than we expected. However, during the quarter we made excellent progress on our business transformation plan. The core foundational elements are now in place to propel improvement in the second half of the fiscal year. We believe the substantial changes we are making will strengthen our competitive position, increase our available market, make it easier for our channel partners to sell, and enable us to execute our plans to improve revenue and earnings growth. On a separate note, I am pleased to report that Gartner has positioned Commvault in the ‘Leaders’ quadrant of the Magic Quadrant for Enterprise Backup Software and Integrated Appliances for a fifth consecutive year. We believe this is a validation of the strength of our products and our company vision.”

Total revenues for the first quarter of fiscal 2016 were $139.1 million, down 9% compared to the first quarter of the prior fiscal year and down 2% on a year-over-year constant currency basis.

Software revenue in the first quarter of fiscal 2016 was $56.5 million, a decrease of 22% year-over-year and a decrease of 19% sequentially. On a constant currency basis, software revenue in the first quarter of fiscal 2016 decreased 15% year-over-year. Services revenue in the first quarter of fiscal 2016 was $82.6 million, an increase of 3% year-over-year and 2% sequentially. On a constant currency basis, services revenue in the first quarter of fiscal 2016 increased 9% year-over-year.

On a GAAP basis, loss from operations (EBIT) was $6.3 million for the first quarter compared to income of $18.2 million in the same period of the prior year. Non-GAAP income from operations (EBIT) decreased to $9.3 million in the first quarter of fiscal 2016 compared to $33.0 million in the first quarter of the prior year.

For the first quarter of fiscal 2016, Commvault reported a net loss of $1.3 million. Non-GAAP net income for the quarter was $5.8 million, or $0.12 per diluted share.

Operating cash flow totaled $21.9 million for the first quarter of fiscal 2016. Total cash and short-term investments were $411.4 million as of June 30, 2015 compared to $387.6 million as of March 31, 2015. During the quarter there were no borrowings against the revolving credit facility.

Recent Business Highlights:

• On June 19, 2015, announced that for the fifth consecutive year it was positioned in the ‘Leaders’ quadrant of Gartner Inc.’s report, Magic Quadrant: Enterprise Backup Software and Integrated Appliances.
• On June 8, 2015, announced it is now a Preferred Solution Partner within the Cisco Solution Partner Program. The Internet of Everything (IoE) continues to bring together people, processes, data and things to enhance the relevancy of network connections. As a member of the Cisco Solution Partner Program, Commvault is able to quickly create and deploy solutions to enhance the capabilities, performance and management of the network to capture value in the IoE.
• On May 26, 2015, announced new capabilities to help business users more safely store, access and share files virtually anywhere. With the expansion of capabilities within its Endpoint Data Protection Solution Set, Commvault offers businesses an enterprise file sync and share (EFSS) solution that provides a smart complement, and/or alternative, to existing solutions by adhering to corporate data management best practices so that sensitive data remains secure in compliance with business requirements.
• On May 13, 2015, announced numerous additions to its product portfolio that enable organizations to thrive in the next wave of cloud adoption by turning data residing in public and hybrid clouds into a powerful strategic information asset. With the release of Commvault Cloud DR, Commvault cloud Development and Test, Commvault Cloud Gateway and Commvault cloud Replication, the company is addressing several critical needs demanded by enterprises.