Science & Technology
Science and Technology
Science and Technology
Fri, January 30, 2009
Thu, January 29, 2009 3PAR: 3PAR Reports Financial Results for Third Quarter of Fiscal 2009
FREMONT, CA--(Marketwire - January 29, 2009) - 3PAR Inc. (
For the third quarter of fiscal 2009, GAAP net income was $461,000, or $0.01 per share compared to GAAP net loss of $1.9 million, or ($0.05) per share for the same period in the prior year. Non-GAAP net income, which excludes the impact of stock-based compensation expense, for the third quarter of fiscal 2009 was $2.3 million, or $0.04 per share, compared to non-GAAP net loss of $664,000, or ($0.02) per share for the same period in the prior year.
"The strong financial results we report for the third quarter of fiscal 2009 result from a continued focus on fiscal discipline and reflect the unique value that 3PAR Utility Storage brings to organizations that need to do more with less in challenging economic times," said David Scott, Chief Executive Officer. "As datacenters have continued to look for new ways to economize, they have continued to turn to 3PAR to lower CAPEX and OPEX by reducing disk capacity purchases, energy costs, and storage administration effort by up to 80%."
Additional Third Quarter Fiscal 2009 Financial Information
3PAR reports operating income (loss), net income (loss), and earnings (loss) per share (EPS) on a GAAP and on a non-GAAP basis, which excludes the impact of stock-based compensation expense. The non-GAAP measures are described in greater detail below and are reconciled to the corresponding GAAP measures in the accompanying financial tables.
-- GAAP operating income for the third quarter of fiscal 2009 was $507,000, or 1% of revenue. This compares to GAAP operating loss of $1.4 million in the second quarter of fiscal 2009, or 3% of revenue. Non-GAAP operating income in the third quarter of fiscal 2009 was $2.4 million, or 5% of revenue. This compares to non-GAAP operating income of $291,000, or 1% of revenue, in the second quarter of fiscal 2009. GAAP net income for the third quarter of fiscal 2009 was $461,000 as compared to a GAAP net loss of $1.2 million in the second quarter of fiscal 2009. Non-GAAP net income in the third quarter of fiscal 2009 was $2.3 million, compared to $520,000 in the second quarter of fiscal 2009. -- GAAP EPS for the third quarter of fiscal 2009 was $0.01 on 63.1 million diluted shares outstanding, compared to ($0.02) in the second quarter of fiscal 2009 on 60.6 million shares outstanding. Non-GAAP EPS in the third quarter of fiscal 2009 was $0.04 compared to $0.01 in the second quarter of fiscal 2009. -- Non-GAAP operating income, non-GAAP net income, and non-GAAP EPS are computed net of stock-based compensation. In the third and second quarters of fiscal 2009, the charges related to stock-based compensation were $1.9 million and $1.7 million, respectively.
Reconciliations of Non-GAAP measures to GAAP operating loss, net loss, and EPS are included at the end of this release.
Webcast and Conference Call Information
To access the conference call by phone, please dial 800-510-9836, Passcode 12011303. International participants can dial 617-614-3670, Passcode 12011303. A live webcast of the conference call will also be accessible from the "Investors" section of 3PAR's Website at [ www.3PAR.com ]. Following the webcast, an archived version will be available on the website for seven days. To hear the replay, parties in the United States and Canada should call 888-286-8010 and enter passcode 16966120. International parties can access the replay at 617-801-6888 and enter passcode 16966120.
About 3PAR Inc.
3PAR® (
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements concerning 3PAR's financial performance, 3PAR's ability to maintain and control costs, the effectiveness of our business strategies, market share opportunities and reception of our value proposition as well as demand for and adoption of our storage solution in our customer markets. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, to be materially different from any future results expressed or implied by the forward-looking statements. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, including the potential for slower than expected growth of the utility storage market or in customer adoption of 3PAR's storage solutions, particularly in light of substantial uncertainty about macroeconomic trends in the United States and globally and their potential impact on information technology spending; the impact of competitive conditions; and those additional risks and uncertainties included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in 3PAR's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, which is on file with the SEC and is available on 3PAR's investor relations website at ir.3PAR.com and on the SEC website at [ www.sec.gov ]. Additional information will also be contained in the Quarterly Report on Form 10-Q for the quarter ended December 31, 2008 that will be filed with the SEC in February 2009.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP earnings (loss) per share (EPS). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Non-GAAP operating income (loss), net income (loss) and EPS. 3PAR defines non-GAAP operating income (loss) and net income (loss) as operating income (loss) and net income (loss) plus stock-based compensation expenses. 3PAR defines non-GAAP EPS as non-GAAP net income (loss) divided by the weighted average basic and diluted shares outstanding. 3PAR's management believes that these non-GAAP financial measures provide meaningful supplemental information regarding 3PAR's performance by excluding non-cash stock-based compensation expenses. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FAS 123R, 3PAR's management believes that providing these non-GAAP financial measures allows investors to compare these results with those of other companies, as well as providing management with an important tool for financial and operational decision making and for evaluating 3PAR's operating results (excluding the impact of these non-cash charges) over different periods of time.
There are a number of limitations related to the use of non-GAAP operating income (loss), net income (loss) and EPS versus operating income (loss), net income (loss) and EPS calculated in accordance with GAAP. First, these non-GAAP financial measures exclude stock-based compensation expenses that are recurring. Stock-based expenses have been and will continue to be for the foreseeable future a significant recurring expense in 3PAR's business. Second, stock-based awards are an important part of 3PAR's employees' compensation and impact their performance. Third, the components of the costs that 3PAR excludes in its calculation of non-GAAP net income (loss) may differ from the components that its peer companies exclude when they report their results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their most directly comparable financial measures calculated in accordance with GAAP. The accompanying tables have more details on these non-GAAP financial measures, including reconciliations between these financial measures and their most directly comparable GAAP equivalents.
A copy of this press release can be found on the "Investors" page of 3PAR's Website at [ www.3PAR.com ].
3PAR Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) December 31, March 31, 2008 2008 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 53,685 $ 97,585 Short-term investments 46,886 18,058 Accounts receivable, net 39,006 34,596 Inventory 29,214 18,057 Deferred cost 5,088 4,273 Prepaid and other current assets 2,334 2,077 ------------ ------------ Total current assets 176,213 174,646 Property and equipment, net 19,078 14,781 Deferred cost, non-current - 251 Other non-current assets 190 156 ------------ ------------ Total assets $ 195,481 $ 189,834 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Line of credit $ - $ 4,000 Accounts payable 10,227 12,527 Accrued liabilities 16,804 16,671 Deferred revenue 31,979 26,051 Accrued warranty 3,736 3,371 Current portion of notes payable - 883 ------------ ------------ Total current liabilities 62,746 63,503 Accrued warranty, non-current 2,977 2,813 Deferred revenue, non-current 6,443 5,945 Other long-term liabilities 1,102 1,173 ------------ ------------ Total liabilities 73,268 73,434 Stockholders' equity 122,213 116,400 ------------ ------------ Total liabilities and stockholders' equity $ 195,481 $ 189,834 ============ ============ 3PAR Inc. Condensed Consolidated Statement of Operations (On a GAAP basis) (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended December 31, December 31, -------------------- -------------------- 2008 2007 2008 2007 --------- --------- --------- --------- Revenue: Product $ 43,713 $ 28,961 $ 125,064 $ 78,859 Support 4,446 1,801 11,195 3,692 --------- --------- --------- --------- Total revenue 48,159 30,762 136,259 82,551 Cost of revenue: Product 15,698 10,401 44,270 27,637 Support 1,388 344 3,551 799 --------- --------- --------- --------- Total cost of revenue (1) 17,086 10,745 47,821 28,436 --------- --------- --------- --------- Gross profit 31,073 20,017 88,438 54,115 Operating expenses: Research and development (1) 11,510 8,320 33,701 25,036 Sales and marketing (1) 15,191 11,762 44,570 32,155 General and administrative (1) 3,865 2,284 10,985 6,550 --------- --------- --------- --------- Total operating expenses 30,566 22,366 89,256 63,741 --------- --------- --------- --------- Income (loss) from operations 507 (2,349) (818) (9,626) Interest and other income, net 47 510 925 808 --------- --------- --------- --------- Income (loss) before provision for income taxes 554 (1,839) 107 (8,818) Income tax provision (93) (38) (159) (106) --------- --------- --------- --------- Net income (loss) $ 461 $ (1,877) $ (52) $ (8,924) ========= ========= ========= ========= Net income (loss) per common share, basic $ 0.01 ($ 0.05) ($ 0.00) ($ 0.35) ========= ========= ========= ========= Net income (loss) per common share, diluted $ 0.01 ($ 0.05) ($ 0.00) ($ 0.35) ========= ========= ========= ========= Shares used to compute net income (loss) per common share Basic 60,772 39,825 60,539 25,537 ========= ========= ========= ========= Diluted 63,122 39,825 60,539 25,537 ========= ========= ========= ========= (1) Includes stock-based compensation as follows: Cost of revenues $ 75 $ 60 $ 189 $ 139 Research and development 570 414 1,574 824 Sales and marketing 831 488 2,108 900 General and administrative 387 251 990 529 3PAR Inc. Condensed Consolidated Statement of Operations (GAAP to non-GAAP reconciliation) (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended December 31, December 31, -------------------- -------------------- 2008 2007 2008 2007 --------- --------- --------- --------- GAAP operating income (loss) $ 507 $ (2,349) $ (818) $ (9,626) Plus: Stock-based compensation 1,863 1,213 4,861 2,392 --------- --------- --------- --------- Non-GAAP operating income (loss) $ 2,370 $ (1,136) $ 4,043 $ (7,234) ========= ========= ========= ========= GAAP net income (loss) $ 461 $ (1,877) $ (52) $ (8,924) Plus: Stock-based compensation 1,863 1,213 4,861 2,392 --------- --------- --------- --------- Non-GAAP net income (loss) $ 2,324 $ (664) $ 4,809 $ (6,532) ========= ========= ========= ========= GAAP net income (loss) per common share $ 0.01 ($ 0.05) ($ 0.00) ($ 0.35) Plus: Stock-based compensation $ 0.03 $ 0.03 $ 0.08 $ 0.09 ========= ========= ========= ========= Non-GAAP net income (loss) per common share, basic $ 0.04 ($ 0.02) $ 0.08 ($ 0.26) ========= ========= ========= ========= Non-GAAP net income (loss) per common share, diluted $ 0.04 ($ 0.02) $ 0.08 ($ 0.26) ========= ========= ========= ========= Shares used in computing basic non-GAAP net income (loss) per common share 60,772 39,825 60,539 25,537 ========= ========= ========= ========= Shares used in computing diluted non-GAAP net income (loss) per common share 63,122 39,825 63,480 25,537 ========= ========= ========= =========
