CommVault Announces Fourth Quarter and Fiscal 2013 Financial Results

     CommVault Announces Fourth Quarter and Fiscal 2013 Financial Results

CommVault Reports Record Quarterly Revenues & Non-GAAP Earnings

Revenues of $138.3 million up 21% year over year

GAAP EBIT of $21.9 million; GAAP EPS $0.35

Non-GAAP EBIT of $31.8 million; Non-GAAP EPS $0.41

PR Newswire

OCEANPORT, N.J., May 7, 2013

OCEANPORT, N.J., May 7, 2013 /PRNewswire/ --

Fourth Quarter and Fiscal 2013 Highlights Include:

                               Fourth Quarter  Fiscal 2013
GAAP Results:
Revenues                       $138.3 million  $495.9 million
Income from Operations (EBIT)  $21.9 million   $80.9 million
EBIT Margin                    15.8%           16.3%
Diluted Earnings Per Share     $0.35           $1.10
Cash Provided by Operations    $42.9 million   $112.7 million


Non-GAAP Results:
Income from Operations (EBIT)  $31.8 million   $113.1 million
EBIT Margin                    23.0%           22.8%
Diluted Earnings Per Share     $0.41           $1.49

CommVault [NASDAQ: CVLT] today announced its financial results for the fourth
quarter and fiscal year ended March 31, 2013.

(Logo: http://photos.prnewswire.com/prnh/20110329/MM73841LOGO )

N. Robert Hammer, CommVault's chairman, president and CEO stated, "Our
excellent results in the fourth quarter were highlighted by record revenues,
non-GAAP EBIT and operating cash flows. Our 23% growth in software revenues
in the fourth quarter compared to the prior year was driven by another quarter
of record enterprise software deals (transactions greater than $100,000) and
strong demand both domestically and internationally. Our fourth quarter
results concluded a strong fiscal 2013 where we achieved substantial
improvements in all aspect of our business by delivering 25% software revenue
growth and a 53% improvement in non-GAAP EBIT for the full fiscal year."

Hammer added, "We are well positioned going into fiscal 2014 and expect to
deliver strong double digit revenue and non-GAAP operating income growth
rates. We are particularly excited about the recent introduction of our new
Simpana 10 software release. We believe that our Simpana 10 release has taken
innovation in the market to a whole new level by radically changing the way
companies manage data for their mobile workforces, improve operational
efficiencies and extract value from their data for better decision making."

Total revenues for the fourth quarter of fiscal 2013 were $138.3 million, an
increase of 21% over the fourth quarter of fiscal 2012 and an increase of 8%
over the prior quarter. Software revenue in the fourth quarter of fiscal 2013
was $72.1 million, an increase of 23% year-over-year and 9% sequentially.
Services revenue in the fourth quarter of fiscal 2013 was $66.1 million, an
increase of 20% year-over-year and 6% sequentially.

For the full fiscal year, total revenues were $495.9 million, an increase of
22% over fiscal 2012. Software revenue for the full fiscal year was $251.5
million, an increase of 25% over fiscal 2012. Services revenue for the full
fiscal year was $244.3 million, an increase of 19% over fiscal 2012.

Income from operations (EBIT) was $21.9 million for the fourth quarter, a 58%
increase from $13.9 million in the same period of the prior year. Non-GAAP
income from operations (EBIT) increased 50% to $31.8 million in the fourth
quarter of fiscal 2013 compared to $21.1 million in the fourth quarter of the
prior year. On a sequential basis, non-GAAP income from operations (EBIT)
increased 7% in the fourth quarter of fiscal 2013.

Income from operations (EBIT) for the full fiscal year was $80.9 million, an
increase of 64% over fiscal 2012. Non-GAAP income from operations (EBIT)
increased 53% to $113.1 million in fiscal 2013 compared to $73.7 million in
fiscal 2012.

For the fourth quarter of fiscal 2013, CommVault reported net income of $17.0
million, an increase of $7.1 million compared to the same period of the prior
year. Non-GAAP net income for the quarter increased 48% to $20.2 million, or
$0.41 per diluted share, from $13.7 million, or $0.29 per diluted share, in
the same period of the prior year.

For the full fiscal year, CommVault reported net income of $53.2 million, an
increase of $21.3 million compared to fiscal 2012. Non-GAAP net income for
the full fiscal year increased 51% to $71.9 million, or $1.49 per diluted
share, from $47.6 million, or $1.01 per diluted share, in fiscal 2012.

Operating cash flow totaled $42.9 million for the fourth quarter of fiscal
2013 compared to $30.1 million in the fourth quarter of fiscal 2012. For the
full fiscal year, operating cash flow was $112.7 million, an increase of 13%
compared to $100.0 million for fiscal 2012. Total cash and short-term
investments were $435.9 million as of March 31, 2013 compared to $300.2
million as of March 31, 2012. There were no share repurchases during the
fourth quarter of fiscal 2013, which still leaves $102.8 million remaining in
the existing repurchase plan available through March 31, 2014.

A reconciliation of GAAP to non-GAAP results has been provided in Financial
Statement Table IV included in this press release. An explanation of these
measures is also included below under the heading "Use of Non-GAAP Financial
Measures."

Recent Business Highlight:

  oOn February 25, 2013, CommVault announced the release of its Simpana 10
    software suite. Simpana 10 extends CommVault's data protection and
    archiving leadership to deliver secure, self-service access from mobile
    devices, speed the adoption of cloud computing and extract value from Big
    Data. Simpana 10 includes major technology advancements such as Enhanced
    IntelliSnap™ snapshot management; Simpana OnePass™ with Exchange; tighter
    integration with Microsoft Hyper-V, VMware vSphere 5.1 and vCloud Director
    5.1; workflow automation; fourth-generation parallel deduplication; and
    customizable web-based reporting, dashboards and cloud-based analytics.

Use of Non-GAAP Financial Measures

CommVault has provided in this press release the following non-GAAP financial
measures: non-GAAP income from operations, non-GAAP income from operations
margin, non-GAAP net income and non-GAAP diluted earnings per share. This
selected financial information has not been prepared in accordance with GAAP.
CommVault uses these non-GAAP financial measures internally to understand,
manage and evaluate its business and make operating decisions. In addition,
CommVault believes these non-GAAP operating measures are useful to investors,
when used as a supplement to GAAP financial measures, in evaluating
CommVault's ongoing operational performance. CommVault believes that the use
of these non-GAAP financial measures provide an additional tool for investors
to use in evaluating ongoing operating results and trends, and in comparing
its financial results with other companies in CommVault's industry, many of
which present similar non-GAAP financial measures to the investment
community.

These non-GAAP financial measures should be considered as a supplement to, and
not as a substitute for or superior to, financial information prepared in
accordance with GAAP. Investors are encouraged to review the reconciliation
of these non-GAAP measures to their most directly comparable GAAP financial
measures, which are provided in Table IV included in this press release.

Non-GAAP income from operations and non-GAAP income from operations margin.
These non-GAAP financial measures exclude noncash stock-based compensation
charges and additional FICA and related payroll tax expense incurred by
CommVault when employees exercise in the money stock options or vest in
restricted stock awards. CommVault believes that these non-GAAP financial
measures are useful metrics for management and investors because they compare
CommVault's core operating results over multiple periods. When evaluating the
performance of CommVault's operating results and developing short and long
term plans, CommVault does not consider such expenses. Although noncash
stock-based compensation and the additional FICA and related payroll tax
expenses are necessary to attract and retain employees, CommVault places its
primary emphasis on stockholder dilution as compared to the accounting charges
related to such equity compensation plans. In addition, because of the
varying available valuation methodologies, subjective assumptions such as
volatility outside CommVault's control and the variety of awards that
companies can issue, CommVault believes that providing non-GAAP financial
measures that exclude noncash stock-based compensation expense and the
additional FICA and related payroll tax expenses incurred on stock option
exercises and vesting of restricted stock awards allow investors to make
meaningful comparisons between CommVault's operating results and those of
other companies.

There are a number of limitations related to the use of non-GAAP income from
operations and non-GAAP income from operations margin. The most significant
limitation is that these non-GAAP financial measures exclude certain operating
costs, primarily related to noncash stock-based compensation, which is of a
recurring nature. Noncash stock-based compensation has been, and will
continue to be for the foreseeable future, a significant recurring expense in
CommVault's operating results. In addition, noncash stock-based compensation
is an important part of CommVault's employees' compensation and can have a
significant impact on their performance. Lastly, the components CommVault
excludes in its non-GAAP financial measures may differ from the components
that its peer companies exclude when they report their non-GAAP financial
measures.

CommVault's management generally compensates for limitations described above
related to the use of non-GAAP financial measures by providing investors with
a reconciliation of the non-GAAP financial measure to the most directly
comparable GAAP financial measure. Further, CommVault management uses non-GAAP
financial measures only in addition to, and in conjunction with, results
presented in accordance with GAAP.

Non-GAAP net income and non-GAAP diluted EPS. Non-GAAP net income excludes
noncash stock-based compensation and the additional FICA and related payroll
tax expenses incurred by CommVault when employees exercise in the money stock
options or vest in restricted stock awards, which are discussed above, as well
as applies a non-GAAP effective tax rate of 37% in fiscal 2013 and 36% in
fiscal 2012.

CommVault anticipates that in any given quarter its non-GAAP tax rate may be
either higher or lower than the GAAP tax rate as evidenced by historical
fluctuations. The GAAP tax rate for the fourth quarter of fiscal 2013 was 23%
and the GAAP tax rate for the fourth quarter of fiscal 2012 was 30%. On an
annual basis, the GAAP tax rate over the past six fiscal years was 35% for
fiscal 2013, 36% for fiscal 2012, 42% for fiscal 2011, 43% for fiscal 2010,
44% for fiscal 2009, and 23% for fiscal 2008. In addition, CommVault's cash
tax rate has been significantly lower than its GAAP tax rate in recent fiscal
years. The cash tax rate for fiscal 2013 is estimated to be approximately 12%
and the cash tax rate over the prior three fiscal years is estimated to be
approximately 14% for fiscal 2012, approximately 11% for fiscal 2011 and
approximately 10% for fiscal 2010. CommVault expects that its cash tax rate
will remain lower than its GAAP tax rate through fiscal 2014 and into fiscal
2015. CommVault defines its cash tax rate as the total amount of cash income
taxes payable for the fiscal year divided by consolidated GAAP pre-tax income.

CommVault measured itself to non-GAAP tax rates of 36% in fiscal 2012 and 37%
in fiscal 2013 and anticipates that it will measure itself to a non-GAAP tax
rate of 37% in fiscal 2014. CommVault believes that the use of a non-GAAP tax
rate is a useful measure as it allows management and investors to compare its
operating results on a more consistent basis over the multiple periods
presented in its earnings release without the impact of significant variations
in the tax rate as more fully described above. It is also more reflective of
the increase in the cash tax rate as it approaches the GAAP tax rate over the
next one to two fiscal years. Non-GAAP EPS is derived from non-GAAP net
income divided by the weighted average shares outstanding on a fully diluted
basis.

CommVault considers non-GAAP net income and non-GAAP diluted EPS useful
metrics for CommVault management and its investors for the same basic reasons
that CommVault uses non-GAAP income from operations and non-GAAP income from
operations margin. In addition, the same limitations as well as management
actions to compensate for such limitations described above also apply to
CommVault's use of non-GAAP net income and non-GAAP EPS.

Conference Call Information

CommVault will host a conference call today, May 7, 2013, at 8:30 a.m. Eastern
Time (5:30 a.m. Pacific Time)to discuss its financial results. To access
this call, dial 888-895-5479 (domestic) or 847-619-6250 (international).
Investors can also access the webcast by visiting www.commvault.com. The live
webcast and replay will be hosted under "Investor Events" located under the
"Investor Relations" section of the website. An archived webcast of this
conference call will also be available following the call.

About CommVault

A singular vision – a belief in a better way to address current and future
data management needs – guides CommVault in the development of Singular
Information Management® solutions for high-performance data protection,
universal availability and simplified management of data on complex storage
networks. CommVault's exclusive single-platform architecture gives companies
unprecedented control over data growth, costs and risk. CommVault's Simpana®
software suite of products was designed to work together seamlessly from the
ground up, sharing a single code and common function set, to deliver
superlative Data Protection, Archive, Replication, Search and Resource
Management capabilities. More companies every day join those who have
discovered the unparalleled efficiency, performance, reliability, and control
only CommVault can offer. Information about CommVault is available at
www.commvault.com. CommVault's corporate headquarters is located in Oceanport,
New Jersey in the United States.

Safe Harbor Statement

This press release may contain forward-looking statements, including
statements regarding financial projections, which are subject to risks and
uncertainties, such as competitive factors, difficulties and delays inherent
in the development, manufacturing, marketing and sale of software products and
related services, general economic conditions and others. Statements
regarding CommVault's beliefs, plans, expectations or intentions regarding the
future are 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. All such forward-looking statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from
anticipated results. CommVault does not undertake to update its
forward-looking statements. The development and timing of any product release
as well as any of its features or functionality remain at our sole discretion.

©1999-2013 CommVault Systems, Inc. All rights reserved. CommVault, CommVault
and logo, the "CV" logo, CommVault Systems, Solving Forward, SIM, Singular
Information Management, Simpana, Simpana OnePass, CommVault Galaxy, Unified
Data Management, QiNetix, Quick Recovery, QR, CommNet, GridStor, Vault
Tracker, InnerVault, Quick Snap, QSnap, Recovery Director, CommServe,
CommCell, IntelliSnap, ROMS, and CommValue are trademarks or registered
trademarks of CommVault Systems, Inc. All other third party brands, products,
service names, trademarks, or registered service marks are the property of and
used to identify the products or services of their respective owners. All
specifications are subject to change without notice.





Table I
CommVault Systems, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
                                    Three Months Ended    Year Ended

                                    March 31,             March 31,
                                    2013       2012       2013       2012
Revenues:
Software                            $ 72,145   $ 58,753   $ 251,508  $ 201,800
Services                              66,129     55,261     244,342    204,839
Total revenues                        138,274    114,014    495,850    406,639
Cost of revenues:
Software                              765        696        2,863      2,747
Services                              17,091     13,984     62,089     50,660
Total cost of revenues                17,856     14,680     64,952     53,407
Gross margin                          120,418    99,334     430,898    353,232
Operating expenses:
Sales and marketing                   71,062     61,901     247,696    219,025
Research and development              12,607     10,987     47,356     39,936
General and administrative            13,551     11,452     50,119     40,619
Depreciation and amortization         1,299      1,109      4,832      4,353
Income from operations                21,899     13,885     80,895     49,299
Interest expense                      -          -          -          (57)
Interest income                       263        237        1,059      750
Income before income taxes            22,162     14,122     81,954     49,992
Income tax expense                    5,177      4,280      28,745     18,052
Net income                          $ 16,985   $ 9,842    $ 53,209   $ 31,940
Net income per common share:
Basic                               $ 0.37     $ 0.22     $ 1.17     $ 0.72
Diluted                             $ 0.35     $ 0.21     $ 1.10     $ 0.68
Weighted average common shares
outstanding:
Basic                                 46,257     44,413     45,463     44,089
Diluted                               49,117     47,390     48,330     47,201





Table II
CommVault Systems, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
                                           March 31,  March 31,
                                           2013       2012
Assets
Current assets:
Cash and cash equivalents                  $ 433,964  $ 297,088
Short-term investments                       1,948      3,146
Trade accounts receivable, net               85,033     67,793
Prepaid expenses and other current assets    15,225     12,606
Deferred tax assets, net                     19,328     14,717
Total current assets                         555,498    395,350
Deferred tax assets, net                     21,166     23,861
Property and equipment, net                  21,112     9,137
Other assets                                 7,078      4,340
Total assets                               $ 604,854  $ 432,688
Liabilities and stockholders' equity
Current liabilities:
Accounts payable                           $ 3,860    $ 1,847
Accrued liabilities                          55,577     45,888
Deferred revenue                             152,967    125,314
Total current liabilities                    212,404    173,049
Deferred revenue, less current portion       31,303     22,059
Other liabilities                            7,130      7,596
Total stockholders' equity                   354,017    229,984
Total liabilities and stockholders' equity $ 604,854  $ 432,688





Table III
CommVault Systems, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                                 Three Months Ended     Year Ended

                                 March 31,              March 31,
                                 2013        2012       2013        2012
Cash flows from operating
activities
Net income                       $ 16,985    $ 9,842    $ 53,209    $ 31,940
Adjustments to reconcile net
income to net cash

 provided by operating
activities:
Depreciation and amortization      1,334       1,135      4,939       4,484
Noncash stock-based compensation   9,037       6,382      30,098      21,426
Excess tax benefits from
stock-based                        (4,966)     (8,983)    (23,080)    (16,009)

 compensation
Deferred income taxes              (4,207)     (4,628)    (2,094)     (4,993)
Changes in operating assets and
liabilities:
Trade accounts receivable          (14,504)    (2,301)    (17,939)    5,419
Prepaid expenses and other         (36)        (2,387)    (2,684)     (4,198)
current assets
Other assets                       (251)       (525)      (1,844)     (3,720)
Accounts payable                   1,201       (993)      2,036       204
Accrued liabilities                14,847      17,615     32,358      29,038
Deferred revenue                   24,091      15,372     38,041      35,599
Other liabilities                  (650)       (412)      (357)       810
Net cash provided by operating     42,881      30,117     112,683     100,000
activities
Cash flows from investing
activities
Purchase of short-term             -           -          (1,948)     (3,146)
investments
Proceeds from maturity of          -           -          3,146       1,150
short-term investments
Purchases for corporate campus     (7,665)     -          (9,209)     -
headquarters
Purchase of property and           (3,759)     (1,379)    (7,821)     (5,796)
equipment
Net cash used in investing         (11,424)    (1,379)    (15,832)    (7,792)
activities
Cash flows from financing
activities
Repurchase of common stock         -           -          -           (45,639)
Proceeds from the exercise of      4,051       4,109      18,128      18,123
stock options
Excess tax benefits from           4,966       8,983      23,080      16,009
stock-based compensation
Net cash provided by (used in)     9,017       13,092     41,208      (11,507)
financing activities
Effects of exchange rate —         (1,808)     1,252      (1,183)     (783)
changes in cash
Net increase in cash and cash      38,666      43,082     136,876     79,918
equivalents
Cash and cash equivalents at       395,298     254,006    297,088     217,170
beginning of period
Cash and cash equivalents at end $ 433,964   $ 297,088  $ 433,964   $ 297,088
of period





Table IV
CommVault Systems, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
                                   
                                                         Year Ended
                                   Three Months Ended
                                                         March 31,
                                   March 31,
                                   2013       2012       2013        2012
Non-GAAP financial measures and

reconciliation:
GAAP income from operations        $ 21,899   $ 13,885   $ 80,895    $ 49,299
Noncash stock-based compensation     9,037      6,382      30,098      21,426
(1)
FICA and related payroll tax
expense

 on stock option exercises and      851        866        2,096       2,964
vesting

 on restricted stock awards (2)
Non-GAAP income from operations    $ 31,787   $ 21,133   $ 113,089   $ 73,689
GAAP net income                    $ 16,985   $ 9,842    $ 53,209    $ 31,940
Noncash stock-based compensation     9,037      6,382      30,098      21,426
(1)
FICA and related payroll tax
expense

 on stock option exercises and      851        866        2,096       2,964
vesting

 on restricted stock awards (2)
Non-GAAP provision for income
taxes                                (6,682)    (3,414)    (13,490)    (8,726)

 adjustment (3)
Non-GAAP net income                $ 20,191   $ 13,676   $ 71,913    $ 47,604
Diluted weighted average shares
                                     49,117     47,390     48,330      47,201
outstanding
Non-GAAP diluted net income per
                                   $ 0.41     $ 0.29     $ 1.49      $ 1.01
share



Footnotes - Adjustments
(1) Represents noncash stock-based compensation charges associated with stock
options and restricted stock units granted as follows:
                       Three Months Ended              Year Ended

                       March 31,                       March 31,
                       2013             2012           2013         2012
Cost of services       $    304         $   313        $  963       $  648
revenue
Sales and marketing         3,917           2,692         13,508       9,818
Research and                906             709           3,020        2,270
development
General and                 3,910           2,668         12,607       8,690
administrative
Stock-based            $    9,037       $   6,382      $  30,098    $  21,426
compensation expense
(2) Represents additional FICA and related payroll tax expenses incurred by
CommVault when employees exercise in the money stock options or vest in
restricted stock awards.
(3) The provision for income taxes is adjusted to reflect CommVault's
estimated non-GAAP effective tax rate of approximately 37% in fiscal 2013 and
36% in fiscal 2012.



SOURCE CommVault

Website: http://www.commvault.com
Contact: Investor Relations, Michael Picariello, CommVault, 732-728-5380,
ir@commvault.com
 
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