Delaware | 22-3447504 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits: | |||||||
99.1 | Press Release dated October 30, 2007 |
2
COMMVAULT SYSTEMS, INC. |
||||
Dated: October 30, 2007 | /s/ Louis F. Miceli | |||
Louis F. Miceli | ||||
Vice President, Chief Financial Officer | ||||
3
| Revenues of $47.4 million | ||
| Non-GAAP EBIT of $7.0 million and Non-GAAP EBIT Margins of 14.8% | ||
| GAAP EBIT of $4.7 million and GAAP EBIT Margins of 9.8% | ||
| Non-GAAP Diluted Earnings Per Share of $0.12 | ||
| GAAP Diluted Earnings Per Share of $0.08 |
| Total revenues in the range of $194 million to $196 million. | ||
| Non-GAAP gross margins of 86.0% to 86.3%. | ||
| Non-GAAP operating income margins of 17.2% to 17.7%. | ||
| Non-GAAP diluted EPS in the range of $0.57 per share to $0.59 per share using an effective tax rate of approximately 28% and a weighted average diluted share count of approximately 45.6 million to 46.3 million. | ||
| An actual cash tax rate in the mid to high single digits range based on current assumptions. |
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Revenues: |
||||||||||||||||
Software |
$ | 26,556 | $ | 20,260 | $ | 50,636 | $ | 39,048 | ||||||||
Services |
20,850 | 16,378 | 40,759 | 31,112 | ||||||||||||
Total revenues |
47,406 | 36,638 | 91,395 | 70,160 | ||||||||||||
Cost of revenues: |
||||||||||||||||
Software |
542 | 391 | 1,003 | 663 | ||||||||||||
Services |
5,636 | 4,844 | 11,460 | 9,357 | ||||||||||||
Total cost of revenues |
6,178 | 5,235 | 12,463 | 10,020 | ||||||||||||
Gross margin |
41,228 | 31,403 | 78,932 | 60,140 | ||||||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
23,088 | 16,272 | 44,315 | 31,579 | ||||||||||||
Research and development |
6,667 | 6,100 | 13,126 | 11,518 | ||||||||||||
General and administrative |
6,098 | 4,611 | 11,256 | 9,264 | ||||||||||||
Depreciation and amortization |
723 | 582 | 1,422 | 1,079 | ||||||||||||
Income from operations |
4,652 | 3,838 | 8,813 | 6,700 | ||||||||||||
Interest expense |
| (17 | ) | (114 | ) | (17 | ) | |||||||||
Interest income |
886 | 676 | 1,703 | 1,200 | ||||||||||||
Income before income taxes |
5,538 | 4,497 | 10,402 | 7,883 | ||||||||||||
Income tax expense |
(2,100 | ) | (66 | ) | (3,985 | ) | (111 | ) | ||||||||
Net income |
3,438 | 4,431 | 6,417 | 7,772 | ||||||||||||
Less: accretion of preferred stock dividends |
| (1,407 | ) | | (2,818 | ) | ||||||||||
Less: accretion of fair value of preferred stock
upon conversion |
| (102,745 | ) | | (102,745 | ) | ||||||||||
Net income (loss) attributable to common
stockholders |
$ | 3,438 | $ | (99,721 | ) | $ | 6,417 | $ | (97,791 | ) | ||||||
Net income (loss) attributable to common
stockholders per share: |
||||||||||||||||
Basic |
$ | 0.08 | $ | (4.90 | ) | $ | 0.15 | $ | (4.96 | ) | ||||||
Diluted |
$ | 0.08 | $ | (4.90 | ) | $ | 0.14 | $ | (4.96 | ) | ||||||
Weighted average shares used in computing per
share amounts: |
||||||||||||||||
Basic |
43,103 | 20,353 | 42,726 | 19,696 | ||||||||||||
Diluted |
45,677 | 20,353 | 45,321 | 19,696 | ||||||||||||
September 30, | March 31, | |||||||
2007 | 2007 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 79,183 | $ | 65,001 | ||||
Trade accounts receivable, net |
30,820 | 22,044 | ||||||
Prepaid expenses and other current assets |
4,538 | 3,657 | ||||||
Deferred tax assets |
9,618 | 9,616 | ||||||
Total current assets |
124,159 | 100,318 | ||||||
Property and equipment, net |
5,077 | 4,624 | ||||||
Deferred tax assets, net |
41,773 | 42,543 | ||||||
Other assets |
1,008 | 554 | ||||||
Total assets |
$ | 172,017 | $ | 148,039 | ||||
Liabilities and stockholders equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 2,168 | $ | 1,500 | ||||
Accrued liabilities |
21,505 | 20,215 | ||||||
Term loan |
| 7,500 | ||||||
Deferred revenue |
42,655 | 36,214 | ||||||
Total current liabilities |
66,328 | 65,429 | ||||||
Deferred revenue, less current portion |
5,420 | 4,284 | ||||||
Other liabilities |
92 | 4 | ||||||
Total stockholders equity |
100,177 | 78,322 | ||||||
$ | 172,017 | $ | 148,039 | |||||
Six Months Ended | ||||||||
September 30, | ||||||||
2007 | 2006 | |||||||
Cash flows from operating activities |
||||||||
Net income |
$ | 6,417 | $ | 7,772 | ||||
Adjustments to reconcile net income to net cash provided
by operating activities: |
||||||||
Depreciation and amortization |
1,500 | 1,213 | ||||||
Noncash stock-based compensation |
4,026 | 2,881 | ||||||
Excess tax benefits from stock-based compensation |
(2,486 | ) | | |||||
Deferred income taxes |
356 | | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(8,268 | ) | 295 | |||||
Prepaid expenses and other current assets |
(490 | ) | (224 | ) | ||||
Other assets |
(231 | ) | (200 | ) | ||||
Accounts payable |
641 | (230 | ) | |||||
Accrued liabilities |
2,269 | 1,317 | ||||||
Deferred revenue and other liabilities |
6,578 | 954 | ||||||
Net cash provided by operating activities |
10,312 | 13,778 | ||||||
Cash flows from investing activities |
||||||||
Purchase of property and equipment |
(1,869 | ) | (2,247 | ) | ||||
Net cash used in investing activities |
(1,869 | ) | (2,247 | ) | ||||
Cash flows from financing activities |
||||||||
Proceeds from the exercise of stock options |
5,928 | 190 | ||||||
Net proceeds from follow-on public offering of common stock |
4,315 | | ||||||
Excess tax benefits from stock-based compensation |
2,486 | | ||||||
Repayments on term loan |
(7,500 | ) | (5,000 | ) | ||||
Proceeds from term loan |
| 15,000 | ||||||
Payments to Series A through E preferred stockholders upon
conversion to common stock |
| (101,833 | ) | |||||
Net proceeds from initial public offering and concurrent
private placement |
| 82,494 | ||||||
Net cash provided by (used in) financing activities |
5,229 | (9,149 | ) | |||||
Effects of exchange rate changes in cash |
510 | (257 | ) | |||||
Net increase in cash and cash equivalents |
14,182 | 2,125 | ||||||
Cash and cash equivalents at beginning of period |
65,001 | 48,039 | ||||||
Cash and cash equivalents at end of period |
$ | 79,183 | $ | 50,164 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Non-GAAP financial measures and
reconciliation: |
||||||||||||||||
GAAP income from operations |
$ | 4,652 | $ | 3,838 | $ | 8,813 | $ | 6,700 | ||||||||
Noncash stock-based compensation (1) |
2,213 | 1,484 | 4,026 | 2,881 | ||||||||||||
FICA expense on stock option
exercises (2) |
145 | | 392 | | ||||||||||||
Non-GAAP income from operations |
$ | 7,010 | $ | 5,322 | $ | 13,231 | $ | 9,581 | ||||||||
GAAP net income (loss) attributable to
common stockholders |
$ | 3,438 | $ | (99,721 | ) | $ | 6,417 | $ | (97,791 | ) | ||||||
Noncash stock-based compensation (1) |
2,213 | 1,484 | 4,026 | 2,881 | ||||||||||||
FICA expense on stock option
exercises (2) |
145 | | 392 | | ||||||||||||
Accretion of preferred stock
dividends (3) |
| 1,407 | | 2,818 | ||||||||||||
Accretion of fair value of preferred
stock upon conversion (4) |
| 102,745 | | 102,745 | ||||||||||||
Non-GAAP provision for income taxes
adjustment (5) |
(111 | ) | (1,429 | ) | (165 | ) | (1,429 | ) | ||||||||
Non-GAAP net income attributable to
common stockholders |
$ | 5,685 | $ | 4,486 | $ | 10,670 | $ | 9,224 | ||||||||
GAAP diluted weighted average shares
outstanding |
45,677 | 20,353 | 45,321 | 19,696 | ||||||||||||
Conversion of Series A through E
preferred stock |
| 6,057 | | 6,195 | ||||||||||||
Conversion of Series AA, BB and CC
preferred stock |
| 9,266 | | 9,476 | ||||||||||||
Dilutive effect of stock options
and warrants |
| 3,267 | | 3,326 | ||||||||||||
Non-GAAP diluted weighted average
shares outstanding |
45,677 | 38,943 | 45,321 | 38,693 | ||||||||||||
Non-GAAP diluted net income per share |
$ | 0.12 | $ | 0.12 | $ | 0.24 | $ | 0.24 | ||||||||
(1) | Represents noncash stock-based compensation charges associated with stock options granted as follows: |
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Cost of services revenue |
$ | 42 | $ | 25 | $ | 75 | $ | 51 | ||||||||
Sales and marketing |
1,059 | 660 | 1,917 | 1,277 | ||||||||||||
Research and development |
323 | 195 | 580 | 382 | ||||||||||||
General and administrative |
789 | 604 | 1,454 | 1,171 | ||||||||||||
Total noncash stock-based
compensation expense |
$ | 2,213 | $ | 1,484 | $ | 4,026 | $ | 2,881 | ||||||||
(2) | Represents additional FICA expenses incurred by CommVault when employees exercise in the money stock options. | |
(3) | Represents accretion of preferred stock dividends due on CommVaults Series A through E cumulative redeemable convertible preferred stock prior to its conversion to common stock on September 27, 2006. | |
(4) | Represents accretion of fair value of Series A through E cumulative redeemable convertible preferred stock upon conversion to common stock on September 27, 2006. | |
(5) | The provision for income taxes is adjusted to reflect CommVaults estimated non-GAAP effective tax rate of approximately 28% in fiscal 2008 and 25% starting in the second quarter of fiscal 2007 which resulted in an estimated effective tax rate of approximately 20% for fiscal 2007. |