SOURCE: BlueArc

June 03, 2005 08:01 ET

BlueArc Secures Funding of $15 Million to Fuel Continued Network Storage Market Expansion

Raised Capital to Accelerate Continued Customer Acquisition, Market Share Growth and Support Increased Routes to Market

SAN JOSE, CA -- (MARKET WIRE) -- June 3, 2005 -- BlueArc® Corporation, provider of the world's highest performance, most scalable network storage systems, today announced it has secured $15 million in funding, targeted at expanding routes to market, enabling aggressive market share expansion, increasing the company's marketing and sales efforts, development of innovative technology and expansion of strategic partners.

This funding, bringing BlueArc's funding to $175 million in aggregate, comes on the heels of the company's most successful year of growth ever in both revenue and customers, seeing a doubling of revenue growth from 2003 to 2004, and customer growth of 60 percent, with strong repeat revenue. With high-profile wins at companies including C.O.R.E. Feature Animation, DKP Studios, Ibis Consulting, Meteor Studios, Washington University in St. Louis and WebTrends representing a fraction of the new customers BlueArc has been awarded in the last year, BlueArc is poised to accelerate marketplace momentum and seize opportunities available in the rapidly growing network storage market -- through unique product differentiation and focused execution. As enterprise companies everywhere are evaluating the addition and expansion of network storage as a key asset to their business, BlueArc aims to further capitalize and extend its innovative technology and architecture into new opportunities, including partnerships with major storage industry players.

Meritech Capital Partners and Crosslink Capital led this round of funding, supported by additional funds from existing BlueArc investors. BlueArc's investors attribute the company's sales success to its unique product offerings founded upon an innovative hardware architecture that delivers real benefits to data-driven customers, along with focused execution on a strategic vision targeted at delivering solutions to demanding business requirements. Now in the company's fifth year of consistent sales growth, BlueArc has continued to establish significant share in key vertical markets, including entertainment, internet services, life sciences and the federal market through accelerating project times, reducing time to market, and scaling to meet peaks in user demand. These achievements in vertical markets augment continued sales success in traditional horizontal applications, including Oracle and Microsoft SQL database environments, e-mail environments, high capacity file sharing, software development and CAD/CAM engineering design.

"The NAS market is a rapidly expanding segment, and with a doubling of revenues for each of the last three years, BlueArc has sustained a phenomenal growth rate, outpacing the competition," said Dave Epstein, general partner of Crosslink Capital and a new addition to BlueArc's board of directors. "The company's innovative technology has helped it achieve significant customer traction, and we believe that its continued growth prospects look very bright."

Last week, BlueArc announced the availability of a new comprehensive software suite for Titan, featuring advanced capabilities in multiple areas, including Virtual Servers, Data Migration, iSCSI support, Remote Volume Mirroring and the introduction of a Write Once Read Many (WORM) file system. These enhancements, licensed individually or in combination, provide users with industry-leading storage management features, ultimately increasing the speed of data access and interaction, boosting productivity. This release, the first major software release for Titan, is a key proof point and deliverable in BlueArc's product roadmap, adding important features to the world's fastest network storage solution on the market, utilizing a single system and single file system.

"The ongoing support by our venture capital partners continues to validate BlueArc's unique product offering and customer successes," said Mike Gustafson, president and CEO for BlueArc. "This round of financing highlights our continued delivery on our business plan, the expansion of our Titan product architecture and our recent software announcements. We are excited about continuing to win in the market and enabling our customers and partners through innovative technology and business impact."

About BlueArc

BlueArc® Corporation changes the economics of network storage by helping customers manage more information with less effort. BlueArc's Titan storage systems enable organizations to maximize performance and reduce operating costs through the movement of software functions into programmable hardware. Since 1998, BlueArc has provided scalable and reliable products, services and solutions to help enterprises achieve unmatched productivity and profitability from their data. The company's headquarters are in San Jose, California with UK operations based in Bracknell, England. More information on BlueArc is available on the Internet at www.bluearc.com.

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