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Commvault Announces Fiscal 2018 Fourth Quarter Financial Results and Unveils Strategic Transformation Initiative
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-- Record quarterly total revenues up 11% year over year --
-- Continued shift to subscription-based pricing represents 37% of quarterly software and products revenue --
-- Unveils Commvault Advance, a multi-pronged effort, in progress over the past year, to drive sustained business performance --

TINTON FALLS, N.J., May 1, 2018 /PRNewswire/ --

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

Fourth Quarter and Fiscal 2018 Highlights Include:



Fourth Quarter


Fiscal 2018

GAAP Results:





Revenues


$184.9 million


$699.4 million

Income (Loss) from Operations (EBIT)


$4.6 million


$(0.9) million

EBIT Margin


2.5%


(0.1)%

Diluted Loss Per Share


($0.04)


($1.37)






Non-GAAP Results:





Income from Operations (EBIT)


$22.5 million


$76.0 million

EBIT Margin


12.2%


10.9%

Diluted Earnings Per Share


$0.31


$1.03

Commvault [NASDAQ: CVLT] today announced its financial results for the fourth quarter and fiscal year ended March 31, 2018 and unveiled Commvault Advance, a multi-pronged transformation initiative spanning a series of actions completed over the past year, currently underway, and still to come that together are designed to drive sustained business performance.  

N. Robert Hammer, Commvault's Chairman, President and CEO stated, "We concluded our fiscal year achieving quarterly software and products revenue of $83.5 million, representing 7% growth year over year, and total revenues of $184.9 million, which increased 11% year over year.  Our software and products revenue growth was driven by a record number of enterprise transactions and significant acceleration of our subscription-based pricing model.  For the fourth quarter, approximately 37% of our software and products revenue was attributable to subscription-based pricing which resulted in full year fiscal 2018 subscription-based pricing being 25% of our software and product revenues.  We are also pleased with the early success of our Commvault HyperScale™ Appliance, Commvault HyperScale™ Software, and Platform enhancements that had a significant impact to product revenues in the quarter."

"These results show the progress we are making in strengthening our competitive technology position, enhancing and expanding distribution, and realigning resources to drive our go-to-market as a partner-led organization.  However, we know we can and must do more in order to return the Company to sustainable, profitable growth.  The transformation plan announced today, Commvault Advance, is designed to accelerate our margin improvement and ensure we fully capitalize on Commvault's market leadership, with value creation for our shareholders and customers alike.  Finally, we remained opportunistic during the fourth fiscal quarter repurchasing $21 million of our common stock bringing our full fiscal year 2018 repurchases to $112 million," said Hammer.

Fiscal Fourth Quarter and Fiscal 2018 Financial Results
Total revenues for the fourth quarter of fiscal 2018 were $184.9 million, an increase of 11% year-over-year and 3% sequentially.  Software and products revenue in the fourth quarter of fiscal 2018 was $83.5 million, an increase of 7% year-over-year and 3% sequentially.  Services revenue in the fourth quarter of fiscal 2018 was $101.4 million, an increase of 15% year-over-year and 2% sequentially.

For the full fiscal year, total revenues were $699.4 million, an increase of 8% from fiscal 2017.  Software and products revenue for the full fiscal year was $311.7 million, an increase of 7% from fiscal 2017.  Services revenue for the full fiscal year was $387.6 million, an increase of 9% from fiscal 2017.

On a GAAP basis, income from operations (EBIT) increased to $4.6 million for the fourth quarter compared to a loss of $1.8 million in the same period of the prior year.  Non-GAAP income from operations (EBIT) increased to $22.5 million in the fourth quarter of fiscal 2018 compared to $17.6 million in the fourth quarter of the prior year.

On a GAAP basis, loss from operations (EBIT) for the full fiscal year was $0.9 million.  Non-GAAP income from operations (EBIT) increased 2% to $76.0 million in fiscal 2018 compared to $74.5 million in fiscal 2017.

For the fourth quarter of fiscal 2018, Commvault reported net loss of $1.7 million.  Non-GAAP net income for the quarter increased to $14.5 million, or $0.31 per diluted share, from $11.1 million, or $0.24 per diluted share, in the same period of the prior year. 

For the full fiscal year, Commvault reported a net loss of $61.9 million.  During the year, Commvault recorded approximately $52.5 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 full fiscal year increased to $48.7 million, or $1.03 per diluted share, from $47.1 million, or $1.01 per diluted share, in fiscal 2017.

Operating cash flow totaled $23.3 million for the fourth quarter of fiscal 2018 compared to $29.0 million in the fourth quarter of fiscal 2017. For the full fiscal year, operating cash flow was $84.2 million, compared to $100.0 million for fiscal 2017. Total cash and short-term investments were $462.4 million as of March 31, 2018 compared to $450.2 million as of March 31, 2017.  During the fiscal fourth quarter, Commvault repurchased $21.0 million of common stock (0.4 million shares) bringing the fiscal 2018 total repurchases to $112.2 million (2.1 million shares).  Commvault made no borrowings against its line of credit in fiscal 2018.  Commvault terminated the line of credit in February 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."

Commvault Advance
Increasing the rate of top line growth and getting Commvault back to sustainable growth in operating margins are at the core of the Commvault Advance initiative.  Commvault Advance began implementation internally with product improvements developed over the course of the past 18 months, followed by strategic partner actions late in 2018, and was designed to accelerate change and to be announced at the beginning of the company's new fiscal year, staring April 1, 2018.

Commvault has already taken important actions toward achieving these objectives, including:

  • Established product solution groups that more tightly bridge between product development and product go-to-market, speeding the time from product conception to market availability.
     
  • Made changes over the past year to deliver solutions that are simpler for customers to implement and use, including a powerful yet simple, web-based user interface, and appliance offerings.

  • Made changes in pricing and packaging, making it easier for customers to buy Commvault products, including subscription-based pricing models that have accounted for approximately 37% of Q4 and 25% of FY'18 software and product revenue.

  • Launched new products into market to extend Commvault's innovation leadership, including Commvault HyperScale Software and Appliances; data migration and cloud management solutions; and the portfolio of software-as-a-service and outcomes-based offerings.  For example, in their first full quarter of being in market, Commvault HyperScale Technology and ScaleProtect with Cisco UCS had a significant contribution to quarterly software and product revenue.

  • Over the past year, we have established a much broader, stronger partner ecosystem with announcements with the following key strategic partners: Cisco, HPE, Microsoft and AWS; and new relationships with Infinidat, and Google and Oracle,and others.

  • Added new senior leadership to drive a strategic re-focusing of Commvault's go-to-market with partners, including new worldwide heads of partnerships, alliances and channels.

Commvault announced today that it is implementing a series of new transformational moves under Commvault Advance.  These steps include:

  • Immediate moves to create a more efficient go-to-market team by restructuring and reorganizing field-facing resources in sales and marketing to be directly tied to key routes to market with alliances, distribution, service provider, and global SI partners.

  • A worldwide cost-reduction effort, with actions underway to reduce, consolidate and align resources across all functional areas.  This effort will include an examination of the use of contracted employees, third party expenses, T&E and targeted headcount reductions of approximately 4% of the workforce.

  • Supplemental pricing and packaging options in the company's core data protection offering, and upcoming new product announcements that are aligned with key routes to market. 

In addition, as separately announced today in connection with our agreement with Elliott Management, Commvault and its Board of Directors have initiated new governance initiatives and a comprehensive review of Commvault's business and capital allocation to identify additional opportunities for improvement and value creation.

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 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 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 net cash taxes for fiscal 2018 were approximately $6 million.  Estimated net cash taxes for fiscal 2019 are expected to be less than $10 million and relate 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 2018 and recent fiscal years.  As a result of recent U.S. income tax reform, in fiscal 2019 Commvault will reduce its non-GAAP tax rate to 27%, which should align with Commvault's expected long-term cash tax rate.  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.  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 1, 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 audio version of the conference call by visiting www.commvault.com. An archived webcast of this conference call will also be available following the call.

About Commvault
Commvault is the recognized leader in data backup and recovery.  Commvault's converged data management solution redefines what backup means for the progressive enterprise through solutions that protect, manage, and use their most critical asset - their data. Commvault software, solutions and services are available from the company and through a global ecosystem of trusted partners. Commvault employs more than 2,700 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 visit www.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 Operations

(In thousands, except per share data)

(Unaudited)



Three Months Ended
March 31,


Year Ended

March 31,


2018


2017 (1)


2018


2017 (1)

Revenues:








Software and products

$

83,521



$

78,195



$

311,745



$

290,668


Services

101,394



88,537



387,648



354,337


Total revenues

184,915



166,732



699,393



645,005


Cost of revenues:








Software and products

4,098



739



7,223



3,045


Services

24,169



20,635



90,929



82,147


Total cost of revenues

28,267



21,374



98,152



85,192


Gross margin

156,648



145,358



601,241



559,813


Operating expenses:








Sales and marketing

105,117



99,954



410,727



383,933


Research and development

24,713



22,867



94,164



83,543


General and administrative

19,717



22,082



87,575



84,944


Depreciation and amortization

2,509



2,253



9,721



8,635


Total operating expenses

152,056



147,156



602,187



561,055


Income (loss) from operations

4,592



(1,798)



(946)



(1,242)


Interest expense

(463)



(233)



(1,161)



(957)


Interest income

668



320



2,228



1,163


Equity in loss of affiliate

(3,340)



(414)



(3,621)



(958)


Income (loss) before income taxes

1,457



(2,125)



(3,500)



(1,994)


Income tax expense (benefit)

3,118



(2,322)



58,400



(1,486)


Net income (loss)

$

(1,661)



$

197



$

(61,900)



$

(508)


Net income (loss) per common share:








Basic

$

(0.04)



$



$

(1.37)



$

(0.01)


Diluted

$

(0.04)



$



$

(1.37)



$

(0.01)


Weighted average common shares outstanding:








Basic

44,945



44,868



45,242



44,700


Diluted

44,945



46,627



45,242



44,700



(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)




March 31,


March 31,



2018


2017 (1)

ASSETS

Current assets:





Cash and cash equivalents


$

330,784



$

329,491


Short-term investments


131,637



120,693


Trade accounts receivable, net


162,119



140,084


Prepaid expenses and other current assets


22,248



15,791


Total current assets


646,788



606,059







Deferred tax assets, net




50,228


Property and equipment, net


128,612



132,319


Equity method investment




3,621


Deferred commissions cost


33,092



30,378


Other assets


10,150



7,273


Total assets


$

818,642



$

829,878







LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:





Accounts payable


$

761



$

117


Accrued liabilities


82,299



78,701


Deferred revenue


241,113



209,099


Total current liabilities


324,173



287,917







Deferred revenue, less current portion


84,661



70,803


Deferred tax liabilities, net


2,430




Other liabilities


3,314



4,226







Total stockholders' equity


404,064



466,932


Total liabilities and stockholders' equity


$

818,642



$

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

March 31,


Year Ended

March 31,



2018


2017 (1)


2018


2017 (1)

Cash flows from operating activities









Net income (loss)


$

(1,661)



$

197



$

(61,900)



$

(508)


Adjustments to reconcile net income (loss) to net cash provided
by operating activities:









Depreciation and amortization


3,339



2,659



11,785



10,232


Noncash stock-based compensation


16,991



18,775



74,129



73,928


Excess tax benefits from stock-based compensation




(1,466)





(6,242)


Deferred income taxes


55



(4,070)



53,737



(11,468)


Equity in loss of affiliate


3,340



414



3,621



958


Amortization of deferred commissions cost


4,273



4,281



16,587



16,065


Changes in operating assets and liabilities:









Trade accounts receivable


(20,491)



(9,721)



(25,082)



(16,372)


Other current assets and Other assets


225



(1,115)



(6,876)



(55)


Deferred commissions cost


(5,722)



(5,830)



(17,984)



(18,393)


Accounts payable


547



(31)



618



(190)


Accrued liabilities


7,148



4,230



3,496



15,088


Deferred revenue


16,008



20,384



33,971



36,666


Other liabilities


(711)



278



(1,933)



330


Net cash provided by operating activities


23,341



28,985



84,169



100,039


Cash flows from investing activities









Purchase of short-term investments


(32,243)



(2,395)



(142,424)



(96,306)


Proceeds from maturity of short-term investments


31,599



2,449



131,480



74,685


Purchase of property and equipment


(1,750)



(1,939)



(7,047)



(6,424)


Net cash used in investing activities


(2,394)



(1,885)



(17,991)



(28,045)


Cash flows from financing activities









Repurchase of common stock


(20,909)



(25,001)



(112,218)



(49,998)


Proceeds from stock-based compensation plans


12,401



7,050



30,114



21,321


Excess tax benefits from stock-based compensation (2)




1,466





6,242


Net cash used in financing activities


(8,508)



(16,485)



(82,104)



(22,435)


Effects of exchange rate — changes in cash


3,851



2,464



17,219



(8,175)


Net increase in cash and cash equivalents


16,290



13,079



1,293



41,384


Cash and cash equivalents at beginning of period


314,494



316,412



329,491



288,107


Cash and cash equivalents at end of period


$

330,784



$

329,491



$

330,784



$

329,491



(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

(In thousands, except per share data)

(Unaudited)




Three Months Ended
March 31,


Year Ended

March 31,



2018


2017 (7)


2018


2017 (7)

Non-GAAP financial measures and reconciliation:











GAAP income (loss) from operations


$

4,592


$

(1,798)


$

(946)


$

(1,242)

Noncash stock-based compensation (1)


16,991


18,775


74,129


73,928

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


931


602


2,818


1,790

Non-GAAP income from operations


$

22,514


$

17,579


$

76,001


$

74,476










GAAP net income (loss)


$

(1,661)


$

197


$

(61,900)


$

(508)

Noncash stock-based compensation (1)


16,991


18,775


74,129


73,928

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


931


602


2,818


1,790

Equity in loss of affiliate (3)


3,340


414


3,621


958

Noncash Interest Expense  Amortization (4)


231



231


Non-GAAP provision for income taxes adjustment (5)


(5,374)


(8,859)


29,799


(29,119)

Non-GAAP net income


$

14,458


$

11,129


$

48,698


$

47,049










Diluted weighted average shares outstanding


46,639


46,627


47,469


46,621

Non-GAAP diluted net income per share


$

0.31


$

0.24


$

1.03


$

1.01





Three months ended
March 31, 2018


Year Ended
March 31, 2018



Sequential


Year Over Year


Year Over Year

Non-GAAP software and products revenue reconciliation







  GAAP software and products revenue


$

83,521


$

83,521


$

311,745

      Adjustment for currency impact


(1,275)


(3,781)


(7,304)

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


$

82,246


$

79,740


$

304,441










Three months ended
March 31, 2018


Year Ended
March 31, 2018



Sequential


Year Over Year


Year Over Year

Non-GAAP services revenue reconciliation







  GAAP services revenue


$

101,394


$

101,394


$

387,648

      Adjustment for currency impact


(1,319)


(3,634)


(5,886)

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


$

100,075


$

97,760


$

381,762










Three months ended
March 31, 2018


Year Ended
March 31, 2018



Sequential


Year Over Year


Year Over Year

Non-GAAP total revenue reconciliation







  GAAP total revenues


$

184,915


$

184,915


$

699,393

      Adjustment for currency impact


(2,594)


(7,415)


(13,190)

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


$

182,321


$

177,500


$

686,203





Three Months Ended
March 31,


Year Ended

March 31,



2018


2017


2018


2017










Non-GAAP free cash flow reconciliation:









Net cash provided by operating activities


$

23,341


$

28,985


$

84,169


$

100,039

Purchase of property and equipment


(1,750)


(1,939)


(7,047)


(6,424)

Non-GAAP free cash flow


$

21,591


$

27,046


$

77,122


$

93,615





Three Months Ending March 31, 2018



Americas

EMEA

APAC

Total

Software and Products Revenue


$

46,360


$

26,159


$

11,002


$

83,521

Customer Support Revenue


60,372


20,593


9,569


90,534

Professional Services


6,340


3,041


1,479


10,860

Total Revenue


$

113,072


$

49,793


$

22,050


$

184,915




Three Months Ending March 31, 2017 (7)



Americas

EMEA

APAC

Total

Software and Products Revenue


$

46,716


$

21,379


$

10,100


$

78,195

Customer Support Revenue


54,433


16,347


8,229


79,009

Professional Services


4,934


3,221


1,373


9,528

Total Revenue


$

106,083


$

40,947


$

19,702


$

166,732




Year Ended March 31, 2018



Americas

EMEA

APAC

Total

Software and Products Revenue


$

167,858


$

100,452


$

43,435


$

311,745

Customer Support Revenue


233,991


75,807


36,257


346,055

Professional Services


23,453


11,289


6,851


41,593

Total Revenue


$

425,302


$

187,548


$

86,543


$

699,393




Year Ended March 31, 2017 (7)



Americas

EMEA

APAC

Total

Software and Products Revenue


$

168,243


$

82,393


$

40,032


$

290,668

Customer Support Revenue


216,656


65,732


32,466


314,854

Professional Services


22,704


11,364


5,415


39,483

Total Revenue


$

407,603


$

159,489


$

77,913


$

645,005

 

 

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
March 31,


Year Ended

March 31,





2018


2017


2018


2017



Cost of services revenue


$

834


$

1,030


$

3,182


$

3,925



Sales and marketing


9,029


8,944


36,917


34,005



Research and development


2,101


1,963


8,411


7,335



General and administrative


5,027


6,838


25,619


28,663



Stock-based compensation expense


$

16,991


$

18,775


$

74,129


$

73,928

 

(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 loss from its investment in Laitek, Inc.  In the fourth quarter of fiscal 2018 Commvault recorded a non-cash impairment charge to reduce the value of its investment to zero. 



(4)

Commvault terminated its line of credit in February 2018.  As a result, it incurred additional non-cash amortization related to the unamortized portion of deferred financing fees.  The impact of this additional amortization has been adjusted in order to make fiscal 2018 comparable to the prior period.   



(5)

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.



(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 during 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-fourth-quarter-financial-results-and-unveils-strategic-transformation-initiative-300639778.html

SOURCE Commvault

Investor Relations Contact: Michael Picariello, Commvault, 732-728-5380, ir@commvault.com; Media Relations Contact: Bill Wohl, Commvault, 732-870-4310, bwohl@commvault.com