CommVault Systems Earnings Cheat Sheet: Revenues Surge 22% Higher, Stock Up

Revenue rose for CommVault Systems, Inc. (NASDAQ:CVLT) in the fourth quarter, but profit dropped from a year earlier. CommVault Systems, Inc. is a provider of data and information management software applications and related services. It develops, markets and sells a unified suite of data and information management software applications under the Simpana brand.

Don’t Miss: Wall St. Cheat Sheet’s newest Feature Trades of the Month!

CommVault Systems Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for CommVault Systems, Inc. fell to $4.8 million (10 cents/share) vs. $5.8 million (13 cents/share) a year earlier. A decline of 16.8% from the year earlier quarter.

Revenue: Rose 22% to $89.6 million YoY.

Actual vs. Wall St. Expectations: CVLT reported adjusted net income of of 25 cents/share. By that measure, the company beat the mean estimate of 23 cents/share. Estimates ranged from 21 cents per share to 25 cents per share.

Quoting Management: N. Robert Hammer, CommVault’s chairman, president and CEO, stated, “Our excellent results in the fourth quarter were highlighted by record revenues, non-GAAP EBIT and non-GAAP earnings per share. Our 22% growth in total revenues in the fourth quarter compared to the prior year was driven by another quarter of record enterprise software deals (transactions greater than $100,000) and solid results from our services organization. We finished fiscal 2011 by delivering double digit revenue and non-GAAP EBIT growth for the full fiscal year. Our strong finish to fiscal 2011 demonstrates the underlying strength of our business and we believe that we are entering fiscal 2012 with excellent momentum. We are well positioned for continued market share gains.”

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 18.8%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 30.8% from the year earlier quarter.

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the third quarter, net income rose 33.3% from the year earlier while the figure increased 14.9% in second quarter, 43.7% four quarters ago and 2331.8% five quarters earlier.

Gross margin shrunk 0.6 percentage point to 86.8%. The contraction appeared to be driven by rising costs as the figure rose 28.2% from the year earlier quarter while revenue rose 22%.

Competitors to Watch: FalconStor Software, Inc. (NASDAQ:FALC), Symantec Corporation (NASDAQ:SYMC), Oracle Corporation (NASDAQ:ORCL), CA, Inc. (NASDAQ:CA), Intl. Business Machines Corp. (NYSE:IBM), Pervasive Software Inc. (NASDAQ:PVSW), TigerLogic Corp. (NASDAQ:TIGR), Microsoft Corporation (NASDAQ:MSFT), EMC Corporation (NYSE:EMC), and Hewlett-Packard Company (NYSE:HPQ)

Stock Performance: Shares of CVLT are up over 7$ to $39.43 per share today from the previous close of $36.67.


Don’t Miss Wall St. Cheat Sheet’s newest Feature Trades of the Month!

More from The Cheat Sheet