Science & Technology
Science and Technology
Science and Technology
Thu, July 30, 2009
Wed, July 29, 2009
Compellent, Inc.: New Global Enterprise Customer Growth Drives Record Revenue and Cash for Compellent in the Second Quarter 200
EDEN PRAIRIE, MN--(Marketwire - July 29, 2009) - Compellent Technologies, Inc. (
-- Revenue grew 37 percent from the second quarter of 2008 and 2 percent from the first quarter of 2009 to $28.7 million. This represented the company's 15th consecutive quarterly increase. -- End-user customers increased by 115 from 1,376 at March 31, 2009 to 1,491 at June 30, 2009. -- GAAP net income totaled $247,000, or $0.01 per share. Non-GAAP net income was $1.5 million, or $0.05 per share, adjusting for non-cash stock compensation expense. -- Cash and investments were $104.6 million compared with $103.4 million at March 31, 2009. -- International revenue grew 79 percent from the second quarter of 2008 and 29 percent from the first quarter of 2009 to $5.7 million.
"The record quarter is validation of our efficient product and business model, which delivered new customer orders and strong revenue growth as we continued to expand our business globally even in this challenging economy," said Phil Soran, president and CEO of Compellent. "Early signs of market stabilization favor Compellent as midsize enterprises continue to deploy our more efficient modular, scalable virtualized storage solution as opposed to bolt-on or brick-based products, which are costly and cumbersome to manage over time."
"Other accomplishments in the quarter that demonstrate the strength of our business include launching our solid-state drive solution, expanding in key markets throughout Europe, and receiving multiple industry awards for our innovative approach to channel sales. Our business momentum demonstrates the benefits of our value proposition over the industry status quo, which makes us optimistic about the prospects for Compellent," concluded Mr. Soran.
Additional Q2 financial highlights include:
-- Gross margin of 53.7 percent compared with 52.8 percent in the first quarter of 2009, primarily due to strong margins on support and services. -- Operating expenses increased 23 percent from a year ago, reflecting continued investments in development, sales and support. -- Operating profit was break-even compared with an operating loss of $1.2 million in the second quarter of 2008. -- Product revenue from new end users, measured on a year-to-date basis, was 51 percent compared to 49 percent from current end users.
Conference Call
The company has scheduled a conference call to discuss its second quarter results and current business developments today, July 29, at 4:30 pm ET. To access the call, dial 877-941-1465 domestically or 480-629-9644 internationally. The call will also be webcast live at [ http://www.compellent.com/investors ]. An audio replay will be available for seven days following the call at 800-406-7325 for U.S. callers or 303-590-3030 for those calling outside the U.S. The password required to access the replay is 4110370#. An archived webcast will also be available at [ http://www.compellent.com/investors ] until the company's conference call to discuss its third quarter 2009 financial results.
Non-GAAP Measure
To supplement the company's Statements of Operations presented in accordance with GAAP, the company uses a non-GAAP measure of net income (loss). In order for investors to be better able to compare the company's current results with those of previous periods, the company has shown a reconciliation of the GAAP to non-GAAP financial measure. This reconciliation adjusts the related GAAP financial measure to exclude stock-based compensation expense. The company believes the presentation of this non-GAAP financial measure enhances the user's overall understanding of the company's historical financial performance. The presentation of non-GAAP net income (loss) is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and the company's non-GAAP financial measure may be different from non-GAAP financial measures used by other companies.
About Compellent
Compellent is a leading provider of enterprise-class network storage solutions that are highly scalable, feature-rich and designed to be easy to use and cost effective. Compellent Technologies' principal offices are located in Eden Prairie, MN. For more information, please visit: [ http://www.compellent.com ].
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. Specifically, statements concerning the anticipated demand for the company's storage solution, the growing base of end users, the company's ability to lower storage costs for end users, the company's momentum and growth, the company's marketing positioning, and the advantages of the company's business model are forward-looking statements within the meaning of the safe harbor. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, time frames or achievements to be materially different from those expressed or implied by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties, including unfavorable economic and market conditions, lessening demand in the information technology market, slower than expected growth of the small-to-medium sized enterprise storage market or adoption of the company's storage solution; the impact of technological developments and competition; the company's reliance on third-parties to sell their storage solution; pricing and availability of suppliers' products; general industry trends; the company's capital and operating requirements to grow its business and changes in industry standards and interfaces, which may cause actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect Compellent's business and its financial results are detailed in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2008 and Form 10-Q for the quarter ended March 31, 2009. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made, and, except as required by law. Compellent disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
COMPELLENT TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) For the Three Months For the Six Months Ended June 30, Ended June 30, -------------------- -------------------- 2009 2008 2009 2008 --------- --------- --------- --------- (unaudited) Revenues Product $ 20,288 $ 17,039 $ 41,577 $ 31,915 Support and services 8,428 3,973 15,212 7,410 --------- --------- --------- --------- Total revenues 28,716 21,012 56,789 39,325 Cost of revenues Cost of product 10,306 8,031 21,132 15,378 Cost of support and services 2,983 1,606 5,407 3,014 --------- --------- --------- --------- Total cost of revenues 13,289 9,637 26,539 18,392 --------- --------- --------- --------- Gross profit 15,427 11,375 30,250 20,933 Operating expenses Sales and marketing 10,846 8,829 20,666 16,782 Research and development 3,074 2,311 5,884 4,659 General and administrative 1,550 1,459 2,950 3,204 --------- --------- --------- --------- Total operating expenses 15,470 12,599 29,500 24,645 --------- --------- --------- --------- Income (loss) from operations (43) (1,224) 750 (3,712) Interest income 419 621 915 1,493 --------- --------- --------- --------- Income (loss) before taxes 376 (603) 1,665 (2,219) Income tax expense (129) - (405) - --------- --------- --------- --------- Net income (loss) $ 247 $ (603) $ 1,260 $ (2,219) ========= ========= ========= ========= Net income (loss) per weighted average share, basic $ 0.01 $ (0.02) $ 0.04 $ (0.07) Weighted average shares, basic 30,729 30,434 30,688 30,389 Net income (loss) per weighted average share, diluted $ 0.01 $ (0.02) $ 0.04 $ (0.07) Weighted average shares, diluted 32,840 30,434 32,634 30,389 COMPELLENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, December 31, 2009 2008 ------------ ------------ (unaudited) Assets Current assets Cash and cash equivalents $ 33,142 $ 51,989 Short-term investments 32,757 29,146 Accounts receivable, net 29,449 19,167 Inventories, net 3,497 3,564 Other current assets 2,793 1,592 ------------ ------------ Total current assets 101,638 105,458 Long-term investments 38,743 19,153 Property and equipment, net 4,227 3,446 ------------ ------------ Total assets $ 144,608 $ 128,057 ============ ============ Liabilities and stockholders' equity Current liabilities Accounts payable $ 8,255 $ 2,885 Accrued compensation 4,176 4,834 Accrued liabilities 1,185 1,480 Deferred revenue, current 20,108 15,128 ------------ ------------ Total current liabilities 33,724 24,327 Deferred revenue, non-current 8,509 5,464 Stockholders' equity 102,375 98,266 ------------ ------------ Total liabilities and stockholders' equity $ 144,608 $ 128,057 ============ ============ COMPELLENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the Six Months Ended June 30, -------------------- 2009 2008 --------- --------- (unaudited) Operating activities Net income (loss) $ 1,260 $ (2,219) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 1,076 700 Stock-based compensation expense 2,075 990 Changes in operating assets and liabilities 1,071 390 --------- --------- Net cash provided by (used in) operating activities 5,482 (139) Investing activities Purchases of property and equipment (1,857) (1,227) Purchases of investments, net (23,105) (24,525) --------- --------- Net cash used in investing activities (24,962) (25,752) Net cash provided by financing activities 633 535 --------- --------- Net decrease in cash and cash equivalents (18,847) (25,356) Cash and cash equivalents, beginning of period 51,989 82,382 --------- --------- Cash and cash equivalents, end of period $ 33,142 $ 57,026 ========= ========= COMPELLENT TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURE (in thousands) Three Months Ended Six Months Ended June 30, June 30, ------------------- ------------------- 2009 2008 2009 2008 --------- -------- --------- -------- (unaudited) GAAP net income (loss) $ 247 $ (603) $ 1,260 $ (2,219) Stock-based compensation expense: Cost of product 12 53 26 87 Cost of support and services 75 - 138 - Sales and marketing 544 243 893 435 Research and development 267 106 413 194 General and administrative 389 135 605 274 --------- -------- --------- -------- Total stock-based compensation expense 1,287 537 2,075 990 --------- -------- --------- -------- Non-GAAP net income (loss), adjusted for stock-based compensation expense $ 1,534 $ (66) $ 3,335 $ (1,229) ========= ======== ========= ======== Non-GAAP net income (loss) per weighted average share, diluted, adjusted for stock-based compensation expense $ 0.05 $ (0.00) $ 0.10 $ (0.04) Weighted average shares, diluted 32,840 30,434 32,634 30,389
