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CommVault Systems Inc. (CVLT)
F3Q08 (Qtr End 12/31/07) Earnings Call
February 5, 2008 5:00 am ET
Bob Hammer - Chairman, President and CEO
Al Bunte - COO
Lou Miceli - CFO
Michael Picariello - Director IR
Tom Curlin - RBC
Fred Reid - Goldman Sachs
Aaron Schwartz - JP Morgan
Brent Bracelin - Pacific Crest Securities
Aaron Rakers - Wachovia Securities
Marks Griffin - Thomas Weisel Partners
Dennis Simpson - Credit Suisse
Dan Renouard - Robert W. Baird
Steve Koenig - KeyBanc Capital Markets
Previous Statements by CVLT
» CommVault Systems, Inc. F2Q09 (Qtr End 09/30/08) Earnings Call Transcript
» CommVault Systems Inc. F1Q09 (Qtr End 06/30/08) Earnings Call Transcript
» CommVault F4Q08 (Qtr End 03/31/08) Earnings Call Transcript
At this time, for opening remarks and introductions I would like to turn the call over to Mr. Michael Picariello, Director of Investor Relations. Please go ahead sir.
Good afternoon. Thanks for dialing in today. With me on the call are Bob Hammer, Chairman, President and Chief Executive Officer, Al Bunte, Chief Operating Officer, and Lou Miceli, Chief Financial Officer.
Before we begin, I like to remind everyone that statements made during this call including in the question-and-answer session at the end of the call, that relate to future results and projections are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on our current expectations. Actual results may differ materially due to a number of risks and uncertainties, which are discussed in our SEC filings in the cautionary statement contained in our press release and on our website.
The company undertakes no responsibility to update the information in this conference call under any circumstances. Our earnings press release was issued today over the wire services after market closed and it also has been furnished to the SEC as an 8-K filing. The press release is also available on our Investor Relations website. On this conference call we will provide non-GAAP financial results. The reconciliation between the non-GAAP and GAAP measures can be found in Table IV accompanying the press release which is also posted on our website.
This conference call is also being recorded for replay and is being webcast. An archive of today's webcast will be available on our website following the call.
I will now turn the call over to our CEO and President, Bob Hammer.
Thanks Michael. I would also like to welcome everyone to our third fiscal quarter of 2008 earnings call. We had another record quarter as we continued to make progress in achieving our long-term strategy for the company. We had strong performance from our international operations and we made excellent progress in increasing our market penetration of our non-backup or emerging products. In addition, we recently launched our first SaaS offering which we call Remote Operations Management Service or ROMS for short which I will talk about later in the call.
The demand for our Simpana 7.0 Software Suite remains very strong and it has fully helped us accelerate the growth of emerging products as well as strength in our position in our core data protection business. Specifically we have seen strong demand for archiving, single instancing, data classification and search.
We continue to outperform our competition and increase our market share. For the quarter, we achieved revenues of $50.3 million, up 31% on a year-on-year basis, versus $38.3 million in fiscal Q3, 2007. Software revenue grew on a year-on-year basis by 28%, while our services business grew 36% year-over-year.
For the quarter, non-GAAP operating income or EBIT was $8.6 million, up 51% year-over-year versus EBIT of $5.7 million to the same period a year ago. Non-GAAP net income was $6.9 million for the quarter and non-GAAP earnings per share was $0.15 for the quarter. Our CFO, Lou Maceli will provide more details on the quarterly financial results later in the call.
I will address deal stats first. We added 389 new customers in the quarter. As usual new customer adds did not include a large number of small orders from new OEM customers who registered through the internet. Our customer base now totals approximately 7,500 which does include the OEM customers who registered thorough the internet. We had solid growth across both our backup products as well as accelerating sales of our emerging products. For Q3 2008, sales of non-core backup or emerging products increased to approximately 26% of software revenue versus 23% in Q2 '08 versus 16% in Q3 of last year. Growth in sales of our merging products have been primarily driven by new components of our Simpana 7.0 Software Suite including single instancing, advanced archiving, enterprise wide search, and discovery and data classification.
As we continue to make significant progress in expanding our market positions above core backup and emerging products in fiscal 2008, we expect the percentage of our emerging product sales to increase as a percentage of total revenue over the medium to long-term, however we still expect that this percentage will continue to fluctuate quarter-to-quarter in the short-term.
We see broader deployment of our full suite of products and larger deals. In deals, over $100,000 sales of our emerging product represent approximately 33% of the sales. This is continued validation that our customers like our singular approach to the market and is a significant part of the growth and sales of our emerging products. Our customers are purchasing multiple elements of the Simpana Suite.