Science & Technology
Science and Technology
Science and Technology
Thu, October 29, 2009
Wed, October 28, 2009 Compellent Announces Record Third Quarter 2009 Results
EDEN PRAIRIE, MN--(Marketwire - October 28, 2009) - Compellent Technologies, Inc. (
Highlights for Q3 include:
-- Revenue increased 31 percent from the same quarter last year and 12 percent from the second quarter of 2009 to $32.2 million. This was the company's 16th consecutive quarterly increase in revenue. -- Total installed base grew to 1,627 end-user customers, an increase of 136 new users from the previous quarter. -- GAAP net income totaled $2.3 million, or $0.07 per share. Non-GAAP net income was $3.2 million, or $0.10 per share, adjusting for non-cash stock compensation expense. -- Cash and investments were $109.0 million compared with $104.6 million at June 30, 2009. The company has generated $10.5 million in cash from operations during the first nine months of 2009.
"We believe our third quarter results demonstrate strong momentum as customers see the value proposition of our efficient, scalable storage solutions," said Phil Soran, president and CEO of Compellent. "This quarter we experienced strength across all geographies and a growing awareness of the Compellent solution. As the demand for efficient storage technologies continue, regardless of whether companies are virtualizing IT, building private clouds or buying cloud services, we continue to gain traction in the marketplace."
Additional Q3 financial highlights include:
-- GAAP operating income was $2.1 million, or 6.5 percent of revenue, compared to GAAP operating loss of $168,000 in the same quarter last year. Non-GAAP operating income was $3.0 million, or 9.5 percent of revenue, compared to $380,000, or 1.5 percent of revenue in the same quarter last year. -- Revenue totaled $89.0 million for the first nine months of 2009, which is a 39 percent increase compared to $63.9 million in the same period last year. -- Net income was $3.5 million, $0.11 per share, for the first nine months of 2009 versus a net loss of $1.8 million, or $0.06 per share, in the same period last year.
"We believe Compellent's storage platform is appealing for enterprises of all sizes because, at its heart, it is an architecture that has the future built in. It is designed to be open and flexible, which we believe makes it the ideal engine for the cutting-edge IT infrastructures of today -- such as cloud computing offerings from Savvis," said Mr. Soran.
Compellent's innovative technology automatically manages block level data and is designed to significantly lower storage and infrastructure capital expenditures. We believe Compellent's flexible Dynamic Block Architecture makes it the ideal data storage engine for a cloud computing environment, and it is also efficient in a more typical virtualized enterprise data center. Compellent features -- like automated tiered storage, thin provisioning and thin replication -- can optimize performance, lower energy costs, and provide a cost-effective storage solution.
Conference Call
The company has scheduled a conference call to discuss its third-quarter results and current business developments today, October 28, at 4:30 p.m. ET. To access the call, dial 877-941-2928 domestically or 480-629-9725 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 4166750#. An archived webcast will also be available at [ http://www.compellent.com/investors ] until the company's conference call to discuss its fourth-quarter 2009 financial results.
Non-GAAP Measures
To supplement the company's Statements of Operations presented in accordance with GAAP, the company uses non-GAAP measures for operating income (loss) and 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 measures. This reconciliation adjusts the related GAAP financial measures to exclude stock-based compensation expense. The company believes the presentation of these non-GAAP financial measures enhance the user's overall understanding of the company's historical financial performance. The presentation of non-GAAP operating income (loss) and 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 measures 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 September 30, 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 (unaudited, in thousands, except per share amounts) For the Three Months For the Nine Months Ended September 30, Ended September 30, -------------------- -------------------- 2009 2008 2009 2008 --------- --------- --------- --------- Revenues Product $ 22,987 $ 19,501 $ 64,564 $ 51,416 Support and services 9,225 5,109 24,437 12,519 --------- --------- --------- --------- Total revenues 32,212 24,610 89,001 63,935 Cost of revenues Cost of product 10,957 9,338 32,089 24,716 Cost of support and services 2,825 2,064 8,232 5,078 --------- --------- --------- --------- Total cost of revenues 13,782 11,402 40,321 29,794 --------- --------- --------- --------- Gross profit 18,430 13,208 48,680 34,141 Operating expenses Sales and marketing 11,386 9,041 32,052 25,823 Research and development 3,276 2,452 9,160 7,111 General and administrative 1,680 1,883 4,630 5,087 --------- --------- --------- --------- Total operating expenses 16,342 13,376 45,842 38,021 --------- --------- --------- --------- Operating income (loss) 2,088 (168) 2,838 (3,880) Interest income 465 632 1,380 2,125 --------- --------- --------- --------- Income (loss) before taxes 2,553 464 4,218 (1,755) Income tax expense (294) - (699) - --------- --------- --------- --------- Net income (loss) $ 2,259 $ 464 $ 3,519 $ (1,755) ========= ========= ========= ========= Net income (loss) per weighted average share, basic $ 0.07 $ 0.02 $ 0.11 $ (0.06) Weighted average shares, basic 30,818 30,523 30,732 30,434 Net income (loss) per weighted average share, diluted $ 0.07 $ 0.01 $ 0.11 $ (0.06) Weighted average shares, diluted 31,944 31,695 31,682 30,434 COMPELLENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) September 30, December 31, 2009 2008 ------------- ------------- (unaudited) Assets Current assets Cash and cash equivalents $ 32,292 $ 51,989 Short-term investments 28,813 29,146 Accounts receivable, net 30,664 19,167 Inventories, net 4,155 3,564 Other current assets 3,088 1,592 ------------- ------------- Total current assets 99,012 105,458 Long-term investments 47,932 19,153 Property and equipment, net 4,648 3,446 ------------- ------------- Total assets $ 151,592 $ 128,057 ============= ============= Liabilities and stockholders' equity Current liabilities Accounts payable $ 7,121 $ 2,885 Accrued compensation 5,352 4,834 Accrued liabilities 1,351 1,480 Deferred revenue, current 21,800 15,128 ------------- ------------- Total current liabilities 35,624 24,327 Deferred revenue, non-current 9,950 5,464 Stockholders' equity 106,018 98,266 ------------- ------------- Total liabilities and stockholders' equity $ 151,592 $ 128,057 ============= ============= COMPELLENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) For the Nine Months Ended September 30, -------------------- 2009 2008 --------- --------- Operating activities Net income (loss) $ 3,519 $ (1,755) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 1,700 1,136 Stock-based compensation expense 3,033 1,538 Changes in operating assets and liabilities 2,273 1,656 --------- --------- Net cash provided by operating activities 10,525 2,575 Investing activities Purchases of property and equipment (2,902) (1,735) Purchases of investments, net (28,271) (37,953) --------- --------- Net cash used in investing activities (31,173) (39,688) Net cash provided by financing activities 951 543 --------- --------- Net decrease in cash and cash equivalents (19,697) (36,570) Cash and cash equivalents, beginning of period 51,989 82,382 --------- --------- Cash and cash equivalents, end of period $ 32,292 $ 45,812 ========= ========= COMPELLENT TECHNOLOGIES, INC. RECONCILIATION OF CONSOLIDATED GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited, in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2009 2008 2009 2008 --------- -------- --------- -------- OPERATING INCOME (LOSS): GAAP operating income (loss) $ 2,088 $ (168) $ 2,838 $ (3,880) Stock-based compensation expense: Cost of product 10 54 36 141 Cost of support and services 18 - 156 - Sales and marketing 405 253 1,298 688 Research and development 139 107 552 301 General and administrative 386 134 991 408 --------- -------- --------- -------- Total stock-based compensation expense 958 548 3,033 1,538 --------- -------- --------- -------- Non-GAAP operating income (loss) $ 3,046 $ 380 $ 5,871 $ (2,342) ========= ======== ========= ======== NET INCOME (LOSS): GAAP net income (loss) $ 2,259 $ 464 $ 3,519 $ (1,755) Add back: stock-based compensation expense 958 548 3,033 1,538 --------- -------- --------- -------- Non-GAAP net income (loss) $ 3,217 $ 1,012 $ 6,552 $ (217) ========= ======== ========= ======== Non-GAAP net income (loss) per weighted average share, diluted $ 0.10 $ 0.03 $ 0.21 $ (0.01) Weighted average shares, diluted 31,944 31,695 31,682 30,434
