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Commvault Announces Fiscal 2018 Third Quarter Financial Results
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-- Record quarterly software and products revenue up 13% sequentially and total revenue up 7% sequentially --
-- Excellent progress in shift toward subscription-based pricing models contributes to deferred revenue growth --
-- Quarterly operating cash flows of $31.2 million, up 17% year over year --

TINTON FALLS, N.J., Jan. 24, 2018 /PRNewswire/ --

Commvault is the global leader in enterprise backup, recovery, archive and the cloud (PRNewsFoto/Commvault) (PRNewsfoto/Commvault)

Third Quarter Highlights Include:

   

Third quarter

GAAP Results:

   

Revenues

 

$180.4 million

Income from Operations (EBIT)

 

$3.5 million

EBIT Margin

 

1.9%

Diluted Loss Per Share

 

$(1.30)

     

Non-GAAP Results:

   

Income from Operations (EBIT)

 

$22.0 million

EBIT Margin

 

12.2%

Diluted Earnings Per Share

 

$0.30

Commvault (NASDAQ: CVLT) today announced its financial results for the third quarter ended December 31, 2017. 

N. Robert Hammer, Commvault's Chairman, President and CEO stated, "We achieved record quarterly revenue of $180.4 million highlighted by sequential software and products revenue growth of 13% driven by an increase in EMEA enterprise revenue transactions, a 19% year over year increase in deferred revenue and a 17% year over year increase in operating cash flows.  We continue to make excellent progress with our subscription based pricing models, which represents approximately 20% of our year to date software revenue, more than double our historical run rate. We also successfully launched our Commvault HyerScale Appliance and Commvault HyperScale Software, which we believe are resonating with customers and partners and will begin to meaningfully impact our results in fiscal 2019.  We are focused on executing a solid fiscal fourth quarter to build a stronger foundation for revenue and earnings growth in fiscal 2019.  Finally, we remained opportunistic during the third fiscal quarter, repurchasing $80 million of our common stock."

Total revenues for the third quarter of fiscal 2018 were $180.4 million, an increase of 8% year-over-year, and 7% sequentially.  Software and products revenue was $81.4 million, an increase of 4% year-over-year, and 13% sequentially.  Services revenue in the quarter was $98.9 million, an increase of 12% year-over-year and 3% sequentially.

On a GAAP basis, income from operations (EBIT) was $3.5 million for the third quarter compared to $3.8 million in the prior year.  Non-GAAP EBIT was $22.0 million in the quarter compared to $23.7 million in the prior year.

For the third quarter of fiscal 2018, Commvault reported a GAAP net loss of $58.9 million, or $1.30 loss per diluted share.  In the quarter, Commvault recorded approximately $59.0 million of non-cash income tax charges related to the combined impact of the lower US corporate income tax rate on deferred tax assets and recording a valuation allowance against the remaining value of deferred tax assets.  Non-GAAP net income for the quarter was $14.1 million, or $0.30 per diluted share. Commvault measured itself to non-GAAP tax rates of 37% in fiscal 2017 and will continue to measure itself to a non-GAAP tax rate of 37% in fiscal 2018.  Commvault is analyzing the longer term impacts of the recent U.S. income tax reform and currently expects that in fiscal 2019 it will reduce its non-GAAP tax rate to approximately 27% which should align with Commvault's expected long-term cash tax rate.  Additional details regarding Commvault's non-GAAP tax rate are provided in the "Non-GAAP net income and non-GAAP diluted EPS" section below.

Operating cash flow totaled $31.2 million for the third quarter of fiscal 2018 compared to $26.8 million in the prior year quarter.  Total cash and short-term investments were $445.5 million as of December 31, 2017 compared to $450.2 million as of March 31, 2017. 

During the third quarter of fiscal 2018, Commvault repurchased approximately 1.5 million shares of its common stock totaling $80.1 million. On January 17, 2018, the Board of Directors extended the expiration date of the share repurchase program to March 31, 2019 and authorized a $100.0 million increase to the existing share repurchase program so that $133.7 million is now available.  There have been no borrowings against the line of credit during fiscal 2018.

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 Highlights:

  • Commvault GO 2017, Commvault's annual customer event, was held Nov. 6-8, 2017 in Washington D.C., with an agenda that included more than 95 breakout, 30 mini theater and 25 structured lab speaking sessions, as well as industry-specific and other expert-led learning sessions. The conference, which grew significantly from the previous year, offered business leaders a unique opportunity to explore how they can protect, manage and activate data to unlock new business opportunities and address some of today's most pressing data challenges, with presentations by industry thought leaders, customers, and partners, including executives from Commvault, Google, Microsoft and Cisco. At the conference, Commvault announced a new analytics portfolio of applications, capabilities, solutions and services, all built on the Commvault Data Platform. The platform is designed to help customers have access to the right data and analytics in order to gain the insights needed to improve business outcomes.
  • On November 7, 2017, Commvault announced a new strategic partnership with Google Cloud to help enterprises leverage the range of cloud services available on one of the industry's fastest growing cloud platforms, Google Cloud Platform™. The partnership was highlighted at Commvault GO 2017 with a keynote delivered by Google executive Adam Massey on how this new relationship addresses the increasing need for data protection for fast growing multi-cloud, hybrid IT environments requiring flexibility, security, high data availability and business agility.
  • On November 7, 2017, Commvault launched Commvault Endpoint Data Protection as a Service to simplify and streamline the backup and recovery of corporate data stored on laptops, desktops and other devices in one flexible, easy-to-use software as a service (SaaS) offering. Fully managed by Commvault in the cloud with 24/7 customer support, Commvault Endpoint Data Protection as a Service eliminates the need for in-house infrastructure installation and reduces application management resources.
  • On October 25, 2017, Commvault was named a winner in the Disaster recovery/business continuity solution category at NetworkWorld Asia's 2017 Readers' Choice/Rising Star Awards. The 12th Readers' Choice Product Excellence Awards recognizes both established and new solution providers that have made the most impact on Asian end-user organizations. Commvault has been recognized for the best solution in getting organizations back up and continuously running after a disaster or downtime, based on votes from qualified readers of NetworkWorld Asia, Asia Cloud Forum, Security Asia and Storage Asia.
  • On October 24, 2017, Commvault announced ScaleProtect with Cisco UCS, a powerful unique scale-out data protection solution combining Commvault HyperScale™ Software with Cisco's Unified Computing System (UCS).  ScaleProtect with Cisco UCS provides enterprises a single, integrated solution that delivers infrastructure simplicity, elasticity, resiliency, flexibility and scale for managing secondary data, while replacing legacy back-up tools with a modern cloud-enabled data management solution.  As the first solution launched as a Commvault HyperScale Software reference architecture, and is available to customers directly from Cisco's Global Price List, making it easy for Cisco and its powerful network of resellers to sell and deliver to the market.
  • On October 17, 2017, Commvault launched Commvault HyperScale Appliance and Commvault HyperScale Software, two powerful, cloud-ready data infrastructure offerings that provide customers with on-premises simplicity, elasticity, resiliency, flexibility and scale for managing secondary data. Commvault's HyperScale Technology brings scale-out infrastructure to the Commvault Data in support of true hybrid IT environments, Commvault HyperScale Technology is uniquely positioned in the market to protect and securely move workloads across any type of infrastructure including public cloud, private cloud and on-premises.  Initial program participants in the reference architecture software program include:  Fujitsu, Cisco, Lenovo, HPE, Super Micro Computer, Huawei and Dell-EMC.  

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.  Commvault has also provided software, services and total revenues on a constant currency basis. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.  Finally, Commvault has provided free cash flow, which Commvault uses to measure the amount of cash flow the business is generating after capital expenditures.  

All of 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, which are outside of 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, 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.  Commvault has also excluded its share of earnings or loss from its equity method investment. In addition, non-GAAP net income and non-GAAP diluted EPS incorporate a non-GAAP effective tax rate of 37% in fiscal 2018 and fiscal 2017.

Commvault anticipates that in any given period its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. On an annual basis, the GAAP tax rate was 37% for fiscal 2014 and 34% for fiscal 2015.  The GAAP tax rates for fiscal 2016, 2017 and fiscal 2018 are not meaningful percentages due to the dollar amount of GAAP pre-tax income.  In addition, during the third quarter of fiscal 2018, Commvault recorded non-cash income tax charges related to the combined impact of the lower US corporate income tax rate on deferred tax assets and recording a valuation allowance against the remaining value of deferred tax assets.

From a cash tax perspective, the cash tax rate is estimated to be 18% for fiscal 2014 and 26% for fiscal 2015.  For the same reason as the GAAP tax rates, the estimated cash tax rates for fiscal 2016, 2017 and fiscal 2018 are not meaningful percentages.  Estimated cash taxes for fiscal 2017 were approximately $5 million.  Estimated cash taxes for fiscal 2018 and 2019 are expected to be in the $6 million to $7 million range per year and related primarily to Commvault's international operations.  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. Over time, Commvault believes its GAAP and cash tax rates will align.

Commvault measured itself to non-GAAP tax rates of 37% in fiscal 2017 and will continue to measure itself to a non-GAAP tax rate of 37% in fiscal 2018.  Commvault is analyzing the longer term impacts of the recent U.S. income tax reform and currently expects that in fiscal 2019 it will reduce its non-GAAP tax rate to approximately 27% which should align with Commvault's expected long-term cash tax rate.

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, January 24, 2018, at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss its financial results.  To access this call, dial 844-742-4247 (domestic) or 661-378-9470 (international).  Investors can also access the webcast by visiting www.commvault.com. The live webcast and replay will be hosted under the "Events" section of the website. An archived webcast of this conference call will also be available following the call.

About Commvault
Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform modern data environments. With solutions and services delivered directly and through a worldwide network of partners and service providers, Commvault solutions comprise one of the industry's leading portfolios in data protection and recovery, cloud, virtualization, archive, file sync and share. Commvault has earned accolades from customers and third party influencers for its technology vision, innovation, and execution as an independent and trusted expert. Without the distraction of a hardware business or other business agenda, Commvault's sole focus on data management has led to adoption by companies of all sizes, in all industries, and for solutions deployed on premise, across mobile platforms, to and from the cloud, and provided as-a-service. Commvault employs more than 2,500 highly skilled individuals across markets worldwide, is publicly traded on NASDAQ (CVLT), and is headquartered in Tinton Falls, New Jersey in the United States. To learn more about Commvault — and how it can help make your data work for you — visit commvault.com.

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, outcome of litigation and others.  For a discussion of these and other risks and uncertainties affecting Commvault's business, see "Item IA. Risk Factors" in our annual report in Form 10-K and "Item 1A. Risk Factors" in our most recent quarter report in Form 10-Q. 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.

©1999-2018 Commvault Systems, Inc. All rights reserved. Commvault, Commvault and logo, the "C hexagon" logo, Commvault Systems, Solving Forward, SIM, Singular Information Management, OnePass, Commvault Galaxy, Unified Data Management, QiNetix, Quick Recovery, QR, CommNet, GridStor, Vault Tracker, InnerVault, Quick Snap, QSnap, IntelliSnap, Recovery Director, CommServe, CommCell, ROMS, Commvault Edge, 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 (Loss)

(In thousands, except per share data)

(Unaudited)

       
 

Three Months Ended
December 31,

 

Nine Months Ended
December 31,

 

2017

 

  2016 (1)

 

2017

 

  2016 (1)

Revenues:

             

Software and products

$

81,443

   

$

78,655

   

$

228,224

   

$

212,473

 

Services

98,923

   

88,406

   

286,254

   

265,800

 

Total revenues

180,366

   

167,061

   

514,478

   

478,273

 

Cost of revenues:

             

Software and products

1,234

   

772

   

3,125

   

2,306

 

Services

23,723

   

20,394

   

66,760

   

61,512

 

Total cost of revenues

24,957

   

21,166

   

69,885

   

63,818

 

Gross margin

155,409

   

145,895

   

444,593

   

414,455

 

Operating expenses:

             

Sales and marketing

105,106

   

97,053

   

305,610

   

283,979

 

Research and development

23,981

   

21,227

   

69,451

   

60,676

 

General and administrative

20,387

   

21,610

   

67,858

   

62,862

 

Depreciation and amortization

2,457

   

2,163

   

7,212

   

6,382

 

Total operating expenses

151,931

   

142,053

   

450,131

   

413,899

 

Income (loss) from operations

3,478

   

3,842

   

(5,538)

   

556

 

Interest expense

(232)

   

(233)

   

(698)

   

(724)

 

Interest income

588

   

312

   

1,560

   

843

 

Equity in loss of affiliate

(158)

   

(300)

   

(281)

   

(544)

 

Income (loss) before income taxes

3,676

   

3,621

   

(4,957)

   

131

 

Income tax expense

62,621

   

1,662

   

55,282

   

836

 

Net income (loss)

$

(58,945)

   

$

1,959

   

$

(60,239)

   

$

(705)

 

Net income (loss) per common share:

             

Basic

$

(1.30)

   

$

0.04

   

$

(1.33)

   

$

(0.02)

 

Diluted

$

(1.30)

   

$

0.04

   

$

(1.33)

   

$

(0.02)

 

Weighted average common shares outstanding:

             

Basic

45,291

   

45,099

   

45,340

   

44,645

 

Diluted

45,291

   

47,115

   

45,340

   

44,645

 
                       

(1) Adjusted for the retrospective adoption of ASC 606, Revenue from Contracts with Customers

 

Table II

               

Commvault Systems, Inc.

               

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

         
   

December 31,

 

March 31,

   

2017

 

  2017 (1)

ASSETS

Current assets:

       

Cash and cash equivalents

 

$

314,494

 

$

329,491

Short-term investments

 

130,993

 

120,693

Trade accounts receivable, net

 

146,750

 

140,084

Other current assets

 

24,181

 

15,791

Total current assets

 

616,418

 

606,059

         

Deferred tax assets, net

 

 

50,228

Property and equipment, net

 

129,632

 

132,319

Equity method investment

 

3,340

 

3,621

Deferred commissions cost

 

31,372

 

30,378

Other assets

 

8,512

 

7,273

Total assets

 

$

789,274

 

$

829,878

         

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

       

Accounts payable

 

$

193

 

$

117

Accrued liabilities

 

79,179

 

78,701

Deferred revenue

 

227,532

 

209,099

Total current liabilities

 

306,904

 

287,917

         

Deferred revenue, less current portion

 

80,035

 

70,803

Deferred tax liabilities, net

 

2,504

 

Other liabilities

 

3,749

 

4,226

         

Total stockholders' equity

 

396,082

 

466,932

Total liabilities and stockholders' equity

 

$

789,274

 

$

829,878

                     
                     

(1) Adjusted for the retrospective adoption of ASC 606, Revenue from Contracts with Customers

 

 

Table III

 

 

 

 

 

 

Commvault Systems, Inc.

 

 

 

 

 

 

Consolidated Statements of Cash Flows

 

 

(In thousands)

 

 

(Unaudited)

 

 
 

Three Months Ended
December 31,

 

Nine Months Ended
December 31,

 

2017

 

  2016 (1)

 

2017

 

  2016 (1)

Cash flows from operating activities

             

Net income (loss)

$

(58,945)

   

$

1,959

   

$

(60,239)

   

$

(705)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

             

Depreciation and amortization

2,879

   

2,569

   

8,446

   

7,573

 

Noncash stock-based compensation

17,753

   

19,110

   

57,138

   

55,153

 

Excess tax benefits from stock-based compensation (2)

   

(3,575)

   

   

(4,776)

 

Deferred income taxes

56,471

   

(554)

   

53,682

   

(7,398)

 

Equity in loss of affiliate

158

   

300

   

281

   

544

 

Amortization of deferred commissions cost

3,975

   

4,096

   

12,314

   

11,784

 

Changes in operating assets and liabilities:

             

Trade accounts receivable

(17,030)

   

(14,902)

   

(4,591)

   

(6,651)

 

Other current assets and Other assets

5,677

   

4,513

   

(7,101)

   

1,060

 

Deferred commissions cost

(4,748)

   

(4,981)

   

(12,262)

   

(12,563)

 

Accounts payable

11

   

43

   

71

   

(159)

 

Accrued liabilities

15,457

   

10,102

   

(3,652)

   

10,858

 

Deferred revenue

10,550

   

8,219

   

17,963

   

16,282

 

Other liabilities

(998)

   

(131)

   

(1,222)

   

52

 

Net cash provided by operating activities

31,210

   

26,768

   

60,828

   

71,054

 

Cash flows from investing activities

             

Purchase of short-term investments

(33,007)

   

(27,302)

   

(110,181)

   

(93,911)

 

Proceeds from maturity of short-term investments

33,272

   

24,387

   

99,881

   

72,236

 

Purchase of property and equipment

(2,663)

   

(2,405)

   

(5,297)

   

(4,485)

 

Net cash used in investing activities

(2,398)

   

(5,320)

   

(15,597)

   

(26,160)

 

Cash flows from financing activities

             

Repurchase of common stock

(80,050)

   

(24,997)

   

(91,309)

   

(24,997)

 

Proceeds from stock-based compensation plans

978

   

2,818

   

17,713

   

14,271

 

Excess tax benefits from stock-based compensation (2)

   

3,575

   

   

4,776

 

Net cash used in financing activities

(79,072)

   

(18,604)

   

(73,596)

   

(5,950)

 

Effects of exchange rate — changes in cash

1,423

   

(8,226)

   

13,368

   

(10,639)

 

Net increase (decrease) in cash and cash equivalents

(48,837)

   

(5,382)

   

(14,997)

   

28,305

 

Cash and cash equivalents at beginning of period

363,331

   

321,794

   

329,491

   

288,107

 

Cash and cash equivalents at end of period

$

314,494

   

$

316,412

   

$

314,494

   

$

316,412

 
               

(1) Adjusted for the retrospective adoption of ASC 606, Revenue from Contracts with Customers

               

 

(2) In fiscal 2018, the Company adopted ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires cash flows from excess tax benefits to be classified as operating cash flows.  Cash flows related to excess taxes prior to fiscal 2018 remain classified as financing cash flows.

 

 

 

 

 

Table IV

       

Commvault Systems, Inc.

       

Reconciliation of GAAP to Non-GAAP Financial Measures and Other Financial Information

(In thousands, except per share data)

(Unaudited)

       
 

Three Months Ended
December 31,

 

Nine Months Ended
December 31,

 

2017

 

2016 (7)

 

2017

 

2016 (7)

Non-GAAP financial measures and reconciliation:

             

GAAP income (loss) from operations

$

3,478

   

$

3,842

   

$

(5,538)

   

$

556

 

Noncash stock-based compensation (1)

17,753

   

19,110

   

57,138

   

55,153

 

FICA and related payroll tax expense on stock option 
     
exercises and vesting on restricted stock awards (2)

794

   

722

   

1,887

   

1,188

 

Non-GAAP income from operations

$

22,025

   

$

23,674

   

$

53,487

   

$

56,897

 
               

GAAP net income (loss)

$

(58,945)

   

$

1,959

   

$

(60,239)

   

$

(705)

 

Noncash stock-based compensation (1)

17,753

   

19,110

   

57,138

   

55,153

 

FICA and related payroll tax expense on stock option 
     exercises and vesting on restricted stock awards (2)

794

   

722

   

1,887

   

1,188

 

Equity in loss of affiliate (3)

158

   

300

   

281

   

544

 

Non-GAAP provision for income taxes adjustment (4)

54,340

   

(7,127)

   

35,173

   

(20,260)

 

Non-GAAP net income

$

14,100

   

$

14,964

   

$

34,240

   

$

35,920

 
               

Diluted weighted average shares outstanding (5)

47,261

   

47,115

   

47,648

   

46,601

 

Non-GAAP diluted net income per share

$

0.30

   

$

0.32

   

$

0.72

   

$

0.77

 
 

 

 

 

   

Three Months Ended December 31, 2017

 

Nine Months Ended
December 31, 2017

   

Sequential

 

Year Over Year

 

Year Over Year

Non-GAAP software and products revenue reconciliation

           

  GAAP software and products revenue

 

$

81,443

   

$

81,443

   

$

228,224

      Adjustment for currency impact

 

309

   

(3,339)

   

(3,523)

Non-GAAP software and products revenue on a constant currency basis (6)

 

$

81,752

   

$

78,104

   

$

224,701

             
   

Three Months Ended December 31, 2017

 

Nine Months Ended
December 31, 2017

   

Sequential

 

Year Over Year

 

Year Over Year

Non-GAAP services revenue reconciliation

           

  GAAP services revenue

 

$

98,923

   

$

98,923

   

$

286,254

      Adjustment for currency impact

 

298

   

(2,287)

   

(2,252)

Non-GAAP services revenue on a constant currency basis (6)

 

$

99,221

   

$

96,636

   

$

284,002

             
   

Three Months Ended December 31, 2017

 

Nine Months Ended
December 31, 2017

   

Sequential

 

Year Over Year

 

Year Over Year

Non-GAAP total revenue reconciliation

           

  GAAP total revenues

 

$

180,366

   

$

180,366

   

$

514,478

      Adjustment for currency impact

 

607

   

(5,626)

   

(5,775)

Non-GAAP total revenues on a constant currency basis (6)

 

$

180,973

   

$

174,740

   

$

508,703

 

 

 

 

Three Months Ended
December 31,

 

Nine Months Ended
December 31,

 

2017

 

2016

 

2017

 

2016

               

Non-GAAP free cash flow reconciliation:

             

Net cash provided by operating activities

$

31,210

   

$

26,768

   

$

60,828

   

$

71,054

 

Purchase of property and equipment

(2,663)

   

(2,405)

   

(5,297)

   

(4,485)

 

Non-GAAP free cash flow

$

28,547

   

$

24,363

   

$

55,531

   

$

66,569

 

 

 

 

 

Three Months Ended December 31, 2017

 

Americas

EMEA

APAC

Total

Software and Products Revenue

$

40,783

 

$

29,472

 

$

11,188

 

$

81,443

 

Customer Support Revenue

59,225

 

19,478

 

9,151

 

87,854

 

Professional Services

6,287

 

2,944

 

1,838

 

11,069

 

Total Revenue

$

106,295

 

$

51,894

 

$

22,177

 

$

180,366

 

 

 

 

 

Three Months Ended December 31, 2016

 

Americas

EMEA

APAC

Total

Software and Products Revenue

$

41,804

 

$

26,228

 

$

10,623

 

$

78,655

 

Customer Support Revenue

54,738

 

16,323

 

8,079

 

79,140

 

Professional Services

5,385

 

2,574

 

1,307

 

9,266

 

Total Revenue

$

101,927

 

$

45,125

 

$

20,009

 

$

167,061

 

 

 

 

 

Nine Months Ended December 31, 2017

 

Americas

EMEA

APAC

Total

Software and Products Revenue

$

121,498

 

$

74,293

 

$

32,433

 

$

228,224

 

Customer Support Revenue

173,619

 

55,214

 

26,688

 

255,521

 

Professional Services

17,113

 

8,248

 

5,372

 

30,733

 

Total Revenue

$

312,230

 

$

137,755

 

$

64,493

 

$

514,478

 

 

 

 

 

Nine Months Ended December 31, 2016

 

Americas

EMEA

APAC

Total

Software and Products Revenue

$

121,527

 

$

61,014

 

$

29,932

 

$

212,473

 

Customer Support Revenue

162,223

 

49,385

 

24,237

 

235,845

 

Professional Services

17,770

 

8,143

 

4,042

 

29,955

 

Total Revenue

$

301,520

 

$

118,542

 

$

58,211

 

$

478,273

 

 

 

 

Footnotes - Adjustments

(1)   Represents noncash stock-based compensation charges associated with stock options, restricted stock units granted and our Employee Stock Purchase Plan.  Those amounts are represented as follows:

 

Three Months Ended
December 31,

 

Nine Months Ended
December 31,

 

2017

 

2016

 

2017

 

2016

Cost of services revenue

$

846

   

$

1,060

   

$

2,348

   

$

2,895

 

Sales and marketing

9,464

   

9,100

   

27,888

   

25,061

 

Research and development

2,170

   

1,924

   

6,310

   

5,372

 

General and administrative

5,273

   

7,026

   

20,592

   

21,825

 

Stock-based compensation expense

$

17,753

   

$

19,110

   

$

57,138

   

$

55,153

 

 

(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)   Represents Commvault's share of income or loss from its investment in Laitek, Inc.

(4)   The provision for income taxes is adjusted to reflect Commvault's estimated non-GAAP effective tax rate of approximately 37% in fiscal 2018 and fiscal 2017.

(5)   For GAAP purposes the potentially dilutive impact of options and shares associated with our stock-based compensation programs were excluded from the calculation of GAAP loss per share in the periods ended December 31, 2017 and 2016 because they would have been anti-dilutive.  For purposes of non-GAAP income per share the impact of dilutive options and shares has been included.  

(6)   Revenues on a constant currency basis are calculated using the average foreign exchange rates from a previous period and applying these rates to foreign-denominated revenues in the corresponding period of fiscal 2018. The difference between revenue calculated based on these foreign exchange rates and revenues calculated in accordance with GAAP is listed as Adjustment for currency impact in the table above.

(7)   Adjusted for the retrospective adoption of ASC 606, Revenue from Contracts with Customers

 

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/commvault-announces-fiscal-2018-third-quarter-financial-results-300586846.html

SOURCE Commvault

Investor Relations Contact: Michael Picariello, Commvault, 732-728-5380, ir@commvault.com; Media Relations Contact: Leo Tignini, Commvault, 732-728-5378, ltignini@commvault.com