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SOURCE: Compellent, Inc.
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April 28, 2010 16:02 ET
Compellent Reports First Quarter 2010 Financial Results
EDEN PRAIRIE, MN--(Marketwire - April 28, 2010) - Compellent Technologies, Inc. (NYSE: CML)
today announced its financial results for the first quarter ended March 31,
2010. Revenue totaled $31.8 million, within the range of the company's
revised guidance issued on April 7, 2010.
Highlights for Q1 2010 include:
-- Revenue increased 13 percent from the first quarter of 2009 and
decreased 12 percent from the fourth quarter of 2009.
-- Gross margin was 54.8 percent, a 200 basis point increase from
52.8 percent in the first quarter of 2009 and a 190 basis point
improvement from 52.9 percent in the fourth quarter of 2009.
-- GAAP net loss was $780,000, or $0.02 net loss per share.
Non-GAAP net income, which excludes stock-based compensation
expense, was $544,000, or $0.02 net income per share.
-- Cash and investments totaled $131.3 million at March 31, 2010,
compared with $123.8 million at December 31, 2009. The company
generated $8.8 million in cash from operations.
-- Deferred revenue at March 31, 2010 was $41.5 million, an increase
of $3.3 million from December 31, 2009 and $17.3 million from March
31, 2009.
-- Total installed end-user base grew to 1,942 customers, an increase
of 130 new users from the previous quarter.
"First quarter results were consistent with the updated guidance we
provided in early April," said Phil Soran, President and CEO of Compellent.
"Revenue declined on a sequential basis, but the remaining components of
our income statement improved. We had a substantial increase in gross
margin and reduced growth in operating expenses compared to recent
quarters. Our first quarter new customer growth demonstrates our strength."
"Looking ahead, we remain confident in the growth prospects for
Compellent," Mr. Soran continued. "We continue to see strong demand from
midsized and larger enterprises who appreciate the benefits of our unique
storage solution. The introduction of our zNAS unified storage offering
announced yesterday is one example of new products that we anticipate will
expand our addressable market. We believe the efficiency of our business
model and the strong relationships we enjoy with our channel partners are
critical to our success. We have the financial resources to pursue our
growth strategy."
Conference Call
The company has scheduled a conference call to discuss its first quarter
results and current business developments today, April 28, at 4:30 p.m. ET.
To access the call, dial 877-941-2930 domestically or 480-629-9726
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 4283839#. An archived webcast will also be available
at http://www.compellent.com/investors until the company's conference call
to discuss its second quarter 2010 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 at the end of this press release. 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
measures 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 demand for the company's storage solution from
midsized and larger enterprises, the growing base of end users, the
anticipated expansion of the company's addressable market, the company's
growth prospects, the advantages of the company's business model and
adequacy of the company's financial resources 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-to-large 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,
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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
For the Three Months
Ended March 31,
-------------------------
2010 2009
----------- ------------
Revenues
Product $ 20,615 $ 21,289
Support and services 11,212 6,784
----------- ------------
Total revenues 31,827 28,073
Cost of revenues
Product 10,581 10,827
Support and services 3,791 2,424
----------- ------------
Total cost of revenues 14,372 13,251
----------- ------------
Gross profit 17,455 14,822
Operating expenses
Sales and marketing 12,150 9,819
Research and development 4,295 2,810
General and administrative 2,083 1,400
----------- ------------
Total operating expenses 18,528 14,029
----------- ------------
Operating income (loss) (1,073) 793
Other income, net 405 496
----------- ------------
Income (loss) before income taxes (668) 1,289
Income tax expense 112 275
----------- ------------
Net income (loss) $ (780) $ 1,014
=========== ============
Net income (loss) per weighted average share,
basic $ (0.02) $ 0.03
Net income (loss) per weighted average share,
diluted $ (0.02) $ 0.03
Weighted average shares, basic 31,683 30,647
Weighted average shares, diluted 31,683 32,662
COMPELLENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2010 2009
------------ ------------
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 47,973 $ 29,155
Short-term investments 24,751 35,218
Accounts receivable, net 30,194 36,702
Inventories, net 6,407 4,750
Other current assets 4,005 3,497
------------ ------------
Total current assets 113,330 109,322
Long-term investments 58,590 59,472
Property and equipment, net 6,241 5,153
------------ ------------
Total assets $ 178,161 $ 173,947
============ ============
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 8,410 $ 8,968
Accrued compensation 6,049 5,489
Accrued liabilities 1,065 1,261
Deferred revenues, current 27,791 25,668
------------ ------------
Total current liabilities 43,315 41,386
Deferred revenues, non-current 13,746 12,529
Stockholders' equity 121,100 120,032
------------ ------------
Total liabilities and stockholders' equity $ 178,161 $ 173,947
============ ============
COMPELLENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
For the Three Months
Ended March 31,
------------------------
2010 2009
----------- -----------
Operating activities
Net income (loss) $ (780) $ 1,014
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 712 494
Stock-based compensation expense 1,324 788
Changes in operating assets and liabilities 7,501 2,079
----------- -----------
Net cash provided by operating activities 8,757 4,375
Investing activities
Purchases of property and equipment (1,800) (1,033)
Purchases of investments (16,259) (30,325)
Proceeds from sales and maturities of
investments 27,779 20,445
----------- -----------
Net cash provided by (used in) investing
activities 9,720 (10,913)
Net cash provided by financing activities 341 62
----------- -----------
Net increase (decrease) in cash and cash
equivalents 18,818 (6,476)
Cash and cash equivalents, beginning of period 29,155 51,989
----------- -----------
Cash and cash equivalents, end of period $ 47,973 $ 45,513
=========== ===========
COMPELLENT TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURE
(unaudited, in thousands, except per share amounts)
Three Months Ended
March 31,
-------------------------
2010 2009
----------- ------------
Operating income (loss):
GAAP operating income (loss) $ (1,073) $ 793
Stock-based compensation expense:
Cost of product 15 14
Cost of support and services 40 63
Sales and marketing 615 349
Research and development 270 146
General and administrative 384 216
----------- ------------
Total stock-based compensation expense 1,324 788
----------- ------------
Non-GAAP operating income $ 251 $ 1,581
=========== ============
Net income (loss):
GAAP net income (loss) $ (780) $ 1,014
Add back: stock-based compensation expense 1,324 788
----------- ------------
Non-GAAP net income $ 544 $ 1,802
=========== ============
Non-GAAP net income per weighted average
share, diluted, adjusted for stock-based
compensation expense $ 0.02 $ 0.06
Weighted average shares, diluted 33,009 32,662