CommVault today announced its financial results for the second quarter ended September 30, 2014.
"Throughout
the second quarter, we enhanced our product and related go-to-market
initiatives, strengthened our strategic partner programs, and added
additional field selling capacity as we continued to transform
CommVault," said N. Robert Hammer,
CommVault chairman, president and CEO. "Despite the strength of our
strategic position, the depth and differentiation of our technology, and
our strong financial position, we did not execute well enough to meet
our own expectations for the quarter. Since these issues are rooted in
execution challenges that are well within our control, we remain
confident that we can return CommVault to historical growth rates. We
remain steadfast to our strategy to take full advantage of the expanding
market opportunities inherent in our dynamically changing industry."
Total revenues for the second quarter of fiscal 2015 were $151.1 million,
an increase of 7% over the second quarter of fiscal 2014 and a decrease
of 1% sequentially. Software revenue in the second quarter of fiscal
2015 was $69.4 million, a decrease of 2% year-over-year and a decrease of 4% sequentially. Services revenue in the second quarter of fiscal 2015 was $81.7 million, an increase of 15% year-over-year and 1% sequentially.
On a GAAP basis, income from operations (EBIT) was $10.9 million for the second quarter compared to $26.4 million in the same period of the prior year. Non-GAAP income from operations (EBIT) decreased 31% to $26.2 million in the second quarter of fiscal 2015 compared to $37.8 million
in the second quarter of the prior year. On a sequential basis,
non-GAAP income from operations (EBIT) decreased 21% in the second
quarter of fiscal 2015.
For the second quarter of fiscal 2015, CommVault reported net income of $6.5 million compared to $17.4 million in the same period of the prior year. Non-GAAP net income for the quarter decreased 31% to $16.5 million, or $0.35 per diluted share, from $23.9 million, or $0.48 per diluted share, in the same period of the prior year.
Operating cash flow totaled $32.2 million for the second quarter of fiscal 2015 which was an increase of $7.7 million, or 31%, compared to the second quarter of fiscal 2014. Total cash and short-term investments were $414.5 million as of September 30, 2014 compared to $482.7 million as of March 31,
2014. During the second quarter there were no borrowings against the
revolving credit facility. In addition, CommVault did not repurchase
any shares in the second quarter under its share repurchase program. As
of October 28, 2014, there is $150.0 million remaining available in the repurchase program through March 31, 2016.
A
reconciliation of GAAP to non-GAAP results has been provided in
Financial Statement Table IV included in this press release. An
explanation of these measures is also included below under the heading
"Use of Non-GAAP Financial Measures."
Recent Business Highlights:
- On September 23, 2014, CommVault
announced a new consulting service that enables customers to rapidly
design data protection services as a critical component of their private
cloud infrastructure. The new Private Cloud Services Design offering
leverages industry best practices and the expertise of CommVault's
seasoned consultants, architects and engineers to help IT organizations
create data management and protection services that ensure successful
private cloud deployments.
- On August 20, 2014, CommVault
announced new Simpana® cloud management capabilities and Simpana
Solution Sets designed to transform how companies of all sizes protect,
manage and maximize the value of business information amidst a rising
tide of data and compliance requirements. The new Simpana Solution Sets
can be individually deployed or combined as part of a comprehensive
data protection and information management solution.