CommVault Systems Earnings: Tops Estimate, Stock Surges Upward

CommVault Systems, Inc. (NASDAQ:CVLT) reported net income above Wall Street’s expectations for the fourth quarter. CommVault Systems is a provider of data and information management software applications and related services. It develops, markets, and sells a unified suite of data and information management software applications under the Simpana brand.

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CommVault Systems Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for CommVault Systems, Inc. rose to $9.8 million (21 cents per share) vs. $4.8 million (10 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Fell 87.3% to $11.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CommVault Systems, Inc. beat the mean analyst estimate of 17 cents per share. It fell short of the average revenue estimate of $106.1 million.

Quoting Management: N. Robert Hammer, CommVault’s chairman, president and CEO stated, “CommVault achieved excellent fourth quarter results. This was our seventh consecutive quarter of delivering record revenues and we continue to generate strong cash flows. Our fourth quarter was highlighted by continuing momentum in software revenues which increased 34% year-over-year and 14% sequentially. This growth in software revenue was driven by record enterprise software deals (transactions greater than $100,000) and strong demand across all geographies.”

Key Stats:

Gross margins went down 115.6 percentage points to -28.8%. The change appaered to be driven by falling revenue, as the figure dropped 87.3% from the year-earlier quarter, while costs rose 24.2%.

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the first quarter, which saw revenue rise 38%.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 15 cents versus a mean estimate of net income of 18 cents per share.

Last quarter’s profit increase comes after net income dropped in the prevoius quarter. In the third quarter, net income declined 1.3% to $7.2 million.

Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 16 cents. The average estimate hasn’t changed from 68 cents per share for the fiscal year.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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