CommVault Announces Fourth Quarter and Fiscal 2007 Financial Results Revenue and Earnings Exceed Annual Guidance
Fourth Quarter 2007 Highlights Include:
o Revenues of $42.6 million
o Non-GAAP EBIT of $7.5 million and Non-GAAP EBIT Margins of 17.5%
o Non-GAAP Diluted Earnings Per Share of $0.14
o Cash Flow from Operations of $8.1 million
OCEANPORT, N.J. - May 15, 2007 - CommVault(r) [NASDAQ: CVLT], a leading provider of Unified Data Management(r) solutions, today announced its financial results for the fourth quarter and fiscal year ended March 31, 2007.
N. Robert Hammer, CommVault's chairman, president and CEO stated, "CommVault had a very good fourth quarter and fiscal year with solid progress in all areas of our business. Our results exceeded our annual guidance. We have grown the top-line by a compounded annual growth rate of 37% for the past five years. We are also seeing broader deployment of our full suite of products across a broader spectrum of deal sizes. We continue to make the necessary investments in product innovation, support, marketing and distribution in order to sustain our track record of growth and innovation into fiscal 2008 and beyond."
Total revenues in the fourth quarter of fiscal 2007 were a record $42.6 million, an increase of 32% over the fourth quarter of fiscal 2006 and 11% over the prior quarter. Software revenue in the fourth quarter of fiscal 2007 was $23.7 million, up 28% year-over-year and 12% sequentially. For the full year, total revenues were $151.1 million, an increase of 38% over fiscal 2006, and software revenues were $83.9 million, up 34% from the prior year.
Non-GAAP income from operations (EBIT) increased 23% to $7.5 million in the fourth quarter of fiscal 2007 compared to $6.1 million in the fourth quarter of the prior year. EBIT determined in accordance with U.S. GAAP was $5.6 million for the fourth quarter, a 6% increase from $5.3 million in the same period of the prior year. Non-GAAP EBIT for the full year was $22.7 million, an increase of 100% over fiscal 2006 Non-GAAP EBIT of $11.3 million.
For the fourth quarter of fiscal 2007, non-GAAP net income increased 23% to $6.0 million, or $0.14 per diluted share, from $4.9 million or $0.13 per diluted share in the same period of the prior year. CommVault reported GAAP net income for the quarter of $51.8 million, an increase of $46.3 million compared to the same period of the prior year, which includes an income tax benefit of $45.6 million primarily due to the reversal of deferred tax valuation allowances. Non-GAAP net income for the full year increased 111% to $19.9 million, or $0.47 per diluted share, compared with $9.4 million or $0.25 per diluted share in the prior year.
Operating cash flow totaled $8.1 million for the fourth quarter of fiscal 2007 and $30.6 million for full year. Total cash and cash equivalents as of March 31, 2007 were $65.0 million.
A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."
Fiscal 2008 Guidance
For the fiscal year ending March 31, 2008 CommVault currently expects:
o Total revenues in the range of $191 million to $193 million.
o Non-GAAP gross margins of 85.5% to 85.7%.
o Non-GAAP operating income margins of 17.2% to 17.7%.
o Non-GAAP diluted EPS in the range of $0.55 per share to $0.57
per share using an effective tax rate of approximately 28% and a weighted average diluted share count of approximately 46 million to 47 million.
o A cash income tax rate in the range of 4% to 7% based on current
assumptions.
The Non-GAAP diluted EPS guidance excludes approximately $0.13 per share to $0.15 per share of noncash stock-based compensation charges, net of non-GAAP income tax benefits of approximately $0.06 per share, and any additional FICA expense that will be incurred by CommVault when employees exercise in the money stock options.
Use of Non-GAAP Financial Measures
CommVault has provided in this press release selected financial information that has not been prepared in accordance with GAAP. CommVault uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, when used as a supplement to GAAP measures, in evaluating CommVault's ongoing operational performance. CommVault believes that the use of these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in CommVault's industry, many of which present similar non-GAAP financial measures to the investment community.
The non-GAAP financial results discussed above excludes noncash stock-based compensation charges, additional FICA expense incurred by CommVault when employees exercise in the money stock options beginning in the fourth quarter of fiscal 2007, accretion of preferred stock dividends and accretion of fair value of cumulative redeemable convertible preferred stock upon its conversion to common stock. In addition, the non-GAAP financial results apply an effective tax rate of 25% starting in the second quarter of fiscal 2007 which resulted in an estimated effective tax rate of approximately 20% for fiscal 2007, and an effective tax rate of 28% beginning in fiscal 2008.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. As previously mentioned, a reconciliation of GAAP to non-GAAP results is provided in the financial statement tables included in this press release.
Conference Call Information
CommVault will host a conference call today, May 15, 2007, at 5:00 p.m.
EDT to discuss its financial results. To access this call, dial
800-289-0528 (domestic) or 913-981-5522 (international). Additionally, a live web cast of the conference call will be hosted under "Webcasts and Presentations" located under the "Investor Relations" section on CommVault's Web site www.commvault.com.
An archived web cast of this conference call will also be available on the "Investor Relations" section of CommVault's Web site, www.commvault.com.
About CommVault
A singular vision - a belief in a better way to address current and future data management needs - guides CommVault in the development of Unified Data Management(r) solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unprecedented control over data growth, costs and risk. CommVault's software was designed to work together seamlessly from the ground up, sharing a single code and common function set, to deliver superlative Data Protection, Archive, Replication, and Resource Management. More companies every day join those who have discovered the unparalleled efficiency, performance, reliability, and control only CommVault can offer. Information about CommVault is available at www.commvault.com. CommVault's corporate headquarters is located in Oceanport, New Jersey in the United States.
©2007 CommVault Systems, Inc. All rights reserved. CommVault, CommVault and logo, the "CV" logo, CommVault Systems, Solving Forward, SIM, Singular Information Management, CommVault Galaxy, Unified Data Management, QiNetix, Quick Recovery, QR, QNet, GridStor, Vault Tracker, Quick Snap, QSnap, Recovery Director, CommServe, and CommCell, are trademarks or registered trademarks of CommVault Systems, Inc. All other third-party brands, products, service names, trademarks, or registered service marks are the property of and used to identify the products or services of their respective owners. All specifications are subject to change without notice.
Corporate Contact:
Fiona Moon
CommVault
01189 516500
fmoon@commvault.com
Media Contact:
Henrietta Aitken
Fleishman Hillard
020 7395 7150
henrietta.aitken@fleishmaneurope.com
