CommVault Systems Inc. Earnings Cheat Sheet: Higher-Than-Expected Net Income

CommVault Systems, Inc. (NASDAQ:CVLT) reported net income above Wall Street’s expectations for the second quarter. CommVault Systems 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.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

CommVault Systems Earnings Cheat Sheet for the Second Quarter

Results: Net income for CommVault Systems, Inc. rose to $7.9 million (17 cents per share) vs. $5.4 million (12 cents per share) in the same quarter a year earlier. This marks a rise of 45.8% from the year earlier quarter.

Revenue: Rose 29.6% to $97.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CVLT reported adjusted net income of 24 cents per share. By that measure, the company beat the mean estimate of 14 cents per share. It beat the average revenue estimate of $93 million.

Quoting Management: N. Robert Hammer, CommVault’s chairman, president and CEO stated, “We continued our strong start to fiscal year 2012 with an excellent second quarter which was highlighted by year over year total revenue growth of 30%, software revenue growth of 34% and non-GAAP EBIT growth of 37%. Our 34% year over year growth in software revenue was driven by a combination of strong sales execution and increasing customer demand for our Simpana nine software. We continue to win new business and strengthen relationships with enterprise customers who work collaboratively with CommVault to enable them to reduce costs and improve operational efficiencies. In the first half of fiscal 2012, we were able to accelerate revenues and improve operating margins due to the strength of our products and services offerings, good underlying market demand and our increasing distribution leverage. The progress we made in our business in the first half of fiscal 2012 should provide a good foundation for growth as we move into the second half of the fiscal year.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 24.2%, with the biggest boost coming in the first quarter when revenue rose 38% from the year earlier quarter.

Gross margin shrank 0.8 percentage point to 86.6%. The contraction appeared to be driven by increased costs, which rose 37.4% from the year earlier quarter while revenue rose 29.6%.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 15 cents versus a mean estimate of net income of 11 cents per share.

The company has now seen net income rise in two straight quarters. In the first quarter, net income rose more than twofold from the year earlier.

Looking Forward: The average estimate for the third quarter remains unchanged at 17 cents a share. The average estimate for the fiscal year is 64 cents per share, a rise from 60 cents ninety days ago.

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).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

More from The Cheat Sheet