CommVault: Fiscal 3Q08 Financial Results

CommVault announced its financial results for the third fiscal quarter ended December 31, 2007.

N. Robert Hammer, CommVault’s chairman, president
and CEO stated, "We had another record quarter as we continue to make
progress in achieving our long-term strategic objectives. We made
excellent progress in the quarter of increasing our market penetration
related to both our emerging products as well as our core backup
products. We will continue to make the necessary investment in product
development, support and distribution to ensure that we remain a
leading innovator of information management technologies and services."

Total revenues in the third quarter of fiscal 2008
were a record $50.3 million, an increase of 31% over the third quarter
of fiscal 2007 and 6% over the prior quarter. Software revenue in the
third quarter of fiscal 2008 was $27.0 million, up 28% year-over-year
and 2% sequentially. Services revenue in the third quarter of fiscal
2008 was $23.3 million, up 36% year-over-year and 12% sequentially.

Non-GAAP income from operations (EBIT) increased 51%
to $8.6 million in the third quarter of fiscal 2008 compared to $5.7
million in the third quarter of the prior year. EBIT determined in
accordance with GAAP was $6.3 million for the third quarter, a 48%
increase from $4.2 million in the same period of the prior year.

For the third quarter of fiscal 2008, non-GAAP net
income increased 49% to $6.9 million, or $0.15 per diluted share, from
$4.6 million or $0.10 per diluted share in the same period of the prior
year. CommVault reported GAAP net income for the quarter of $8.2
million, an increase of $3.6 million compared to the same period of the
prior year. GAAP net income for the quarter includes a tax benefit of
$0.9 million primarily due to the reversal of deferred tax valuation
allowances in certain international jurisdictions.

Operating cash flow totaled $13.1 million for the
third quarter of fiscal 2008. Total cash and cash equivalents as of
December 31, 2007 were $95.1 million.

Fiscal 2008 Guidance
For the fiscal year ending March 31, 2008, CommVault currently expects:

• Total revenues in the range of $195 million to $196 million.
• Non-GAAP gross margins of 86.0% to 86.3%.
• Non-GAAP operating income margins of 16.7% to 17.0%.
• Non-GAAP
  diluted EPS in the range of $0.56 per share to $0.58 per share using an
  effective tax rate of approximately 28% and a weighted average diluted
  share count of approximately 45.5 million to 46.0 million.
• An actual cash tax rate will be approximately 10% based on current assumptions.
• The non-GAAP gross margin percentages above exclude
  approximately $0.2 million related to noncash stock-based compensation
  charges. The non-GAAP diluted EPS guidance excludes approximately $0.12
  per share to $0.14 per share of noncash stock-based compensation
  charges, net of non-GAAP income tax benefits of approximately $0.05 per
  share, and any additional FICA expense that will be incurred by
  CommVault when employees exercise in the money stock options.

CommVault