CommVault Systems Inc. (CVLT)
F1Q09 (Qtr End 06/30/08) Earnings Call
August 4, 2008 5:00 pm ET
Mike Picariello - Director of IR
Bob Hammer - Chairman, President and CEO
Louis Miceli - CFO
Al Bunte - COO
Tim Klasell - Thomas Weisel Partners
Aaron Rakers - Wachovia
Tom Curlin - RBC
Derek Bingham - Goldman Sachs
Michael Turits - Raymond James
Jayson Noland - Robert Baird
Brian Freed - Morgan Keegan
Steve Koenig - KeyBanc Capital Markets
Phillips Winslow - Credit Suisse
Walter Pritchard - Cowen
Good afternoon ladies and gentlemen and welcome to CommVault fiscal first quarter 2009. (Operator Instructions).
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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 would 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 expectation.
Actual results may differ materially due to a number of risks and uncertainties, which are discussed in our SEC filings and 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 earning press release was issued today over the wire services after the market closed and has also 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 on Table IV accompanying the press release and 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. Welcome everyone and thanks for joining our fiscal first quarter 2009 earnings call. For the quarter, we achieved revenues of $55 million, up 25% on a year-over-year basis, versus $44 million in fiscal Q1, 2008. Software revenue grew on a year-over-year basis by 15%, while our services business grew 37% year-over-year.
For the quarter, non-GAAP operating income or EBIT of $7.2 million, up 16% year-over-year versus EBIT of $6.2 million in fiscal Q1, 2008, non-GAAP earnings per share for the quarter was $0.12. Lou Miceli will provide more details on the financial results along with the updated guidance later on in the call.
As you are already aware from our press release, the results for the quarter are lower than our historical growth rate and below our expectations. The biggest issue that negatively impacted the quarter was the timing of deal flow with several large deals moving into Q2. In contrast, our overall sales funnel increased significantly from its previous high in Q4, FY '08, and our enterprise deal funnel is also very strong, but we also have very good visibility of our large enterprise deal funnel going into Q3.
We had a strong July, which validated the underlying strength of the business. In fact, dollar volume enterprise order received so far in the quarter were over 85% of the dollar volume of enterprise orders recognized in all of Q1 '09. The growth in the overall funnel big deal pipeline in July orders indicate healthy demand for our products across all geographies.
In summary, we had increasing visibility early in Q2. We continue to see very little negative impact from the current economy. As a result of our confidence in the underlying strength of the business, we are reaffirming and modestly raising our guidance for FY '09.
In addition, due to the uncertainties in the equity markets and the macro environment, we feel that is prudent to provide quarterly guidance for the remainder of this fiscal year. When conditions become more stable, we will reevaluate our position on providing quarterly guidance. We will provide both Q2 and updated fiscal 2009 guidance later on in the call.
Now, I will address specific Simpana and enterprise deal status. As a result of the deal for which we believe that the Simpana revenue percentages and the enterprise deal status are indicative of the underlying strength of the business. We added 326 new customers in the quarter. As usual the new customer additions do not include a large number of small quarter orders from OEM customers, who registered through the internet. Our customer base now totals approximately 8,500.
Let's talk about Simpana. For fiscal Q1 2009 sales of our advanced data and information management products or ADIM is a product, which do not include backup products represented 27% of software revenues versus 15% in Q1 of last year.
Archiving, single instancing replication and search functionality are key drivers of the growth for these products. Enterprise deals carry a much higher percentage of the advanced data and information management products. ADIM product sales were up 109% in Q1 FY'09 from Q1 FY'08.
As I previously mentioned, we clearly see our business moving into a broad base heterogeneous data management business, where backup is only one of the functions our products address. In fact as I have also mentioned before our next-generation data management technology will shift the data management burden further away from traditional backup. The demand for our Simpana 7.0 Software Suite remains strong. Currently just over 40% of our entire install base that either upgraded to or has purchased the Simpana suite.