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8-K - FORM 8-K - COMPELLENT TECHNOLOGIES INC | c57800e8vk.htm |
Exhibit 99.1
News Release |
COMPELLENT REPORTS FIRST QUARTER 2010 FINANCIAL RESULTS
EDEN PRAIRIE, Minn., 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 companys 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 companys conference call to discuss its second
quarter 2010 financial results.
Non-GAAP Measures
To supplement the companys 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 companys 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 users overall understanding of the companys historical financial performance. The
presentation of non-GAAP measures is not meant to be considered in isolation or as a substitute for
the companys financial results prepared in accordance with GAAP, and the companys 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 companys storage solution from
midsized and larger enterprises, the growing base of end users, the anticipated expansion of the
companys addressable market, the companys growth prospects, the advantages of the companys
business model and adequacy of the companys 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 companys storage solution; the impact of technological developments and
competition; the companys reliance on third-parties to sell their storage solution; pricing and
availability of suppliers products; general industry trends; the companys 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 Compellents 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.
Contact Information:
Investor Contacts:
Jack Judd
Compellent Technologies
952-294-3316
jjudd@compellent.com
Compellent Technologies
952-294-3316
jjudd@compellent.com
Doug Sherk/Jenifer Kirtland
EVC Group
415-896-6820
jkirtland@evcgroup.com
EVC Group
415-896-6820
jkirtland@evcgroup.com
Media Contact:
Liem Nguyen
Compellent Technologies
952-294-2851
lnguyen@compellent.com
Compellent Technologies
952-294-2851
lnguyen@compellent.com
COMPELLENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
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)
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)
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)
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 |