Data Domain: Fiscal 4Q07 Financial results

Data
Domain, Inc. announced results for its fourth
quarter ended December 31, 2007. Net revenue for the fourth quarter of
2007 was $44.9 million, an increase of 40% from the third quarter of
2007 and an increase of 151% from the fourth quarter of 2006. Net
revenue for the year ended December 31, 2007 was $123.6 million, an
increase of 166% from the year ended December 31, 2006.

Data Domain posted a GAAP net loss for the fourth quarter of 2007
of $76,000, or $0.00 per share. This compares to a GAAP net loss of
$880,000, or $0.02 per share in the immediately preceding third quarter
of 2007, and a GAAP net loss of $2.4 million, or $0.32 per share in the
fourth quarter of 2006.

Excluding the impact of stock-based compensation and related taxes in
all periods, the non-GAAP net income for the fourth quarter of 2007 was
$5.1 million, or $0.10 per basic share and $0.08 per diluted share,
compared to a non-GAAP net loss of $1.8 million, or $0.25 per basic and
diluted share, in the fourth quarter of 2006.

"In the fourth quarter of 2007, Data Domain again achieved record
revenues and accelerated its rate of new customer acquisitions," said
Frank Slootman, president and chief executive officer of Data Domain.
“We added approximately 341 new customers during the quarter, up from
228 the previous quarter, bringing our cumulative customer count to
approximately 1,537 worldwide. Enterprise data growth is in large
measure fueled by a persistent redundancy caused by sharing and
evolving the underlying data. Data Domain storage seamlessly filters
out these repeated data patterns while the data is making its way to
disk, thereby drastically reducing the capacity foot print needed to
store and protect application data. Our progress in Q4 reflects
increasing penetration and acceptance of this new class of storage in
enterprise data centers around the world.”

"In addition to exceeding our revenue plan for the quarter, we had
a gross margin of 73%, and generated positive cash flow from operations
again this quarter, while increasing our number of employees by 72,”
added Michael Scarpelli, chief financial officer of Data Domain.

Data Domain