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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Mar. 31, 2011	Apr. 29, 2011	Sep. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	COMMVAULT SYSTEMS INC
Entity Central Index Key	0001169561
Document Type	10-K
Document Period End Date	Mar. 31, 2011
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1.0
Entity Common Stock, Shares Outstanding		44,037,335

Consolidated Balance Sheets - USD ($) $ in Thousands	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2011	Mar. 31, 2010
Current assets:
Cash and cash equivalents	$ 217,170	$ 169,518
Short-term investments	1,150	5,043
Trade accounts receivable, less allowance for doubtful accounts of $106 and $292 at March 31, 2011 and 2010, respectively	73,891	58,049
Prepaid expenses and other current assets	8,476	4,612
Deferred tax assets, net	12,043	16,693
Total current assets	312,730	253,915
Deferred tax assets, net	21,736	24,485
Property and equipment, net	6,400	6,356
Other assets	1,633	1,259
Total assets	342,499	286,015
Current liabilities:
Accounts payable	1,658	1,891
Accrued liabilities	33,475	25,727
Deferred revenue	98,217	83,112
Total current liabilities	133,350	110,730
Deferred revenue, less current portion	14,695	9,140
Other liabilities	$ 6,324	$ 7,845
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding at March 31, 2011 and 2010	$ 0	$ 0
Common stock, $0.01 par value, 250,000 shares authorized, 43,965 shares and 43,053 shares issued and outstanding at March 31, 2011 and 2010, respectively	440	431
Additional paid-in capital	271,622	239,012
Accumulated deficit	(84,239)	(81,031)
Accumulated other comprehensive income (loss)	307	(112)
Total stockholders' equity	188,130	158,300
Total liabilities and stockholders' equity	$ 342,499	$ 286,015

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Mar. 31, 2011	Mar. 31, 2010	Mar. 31, 2009
Revenues:
Software	$ 149,798	$ 134,500	$ 121,685
Services	164,978	136,525	112,834
Total revenues	314,776	271,025	234,519
Cost of revenues:
Software	2,369	3,017	2,469
Services	38,646	32,628	28,177
Total cost of revenues	41,015	35,645	30,646
Gross margin	273,761	235,380	203,873
Operating expenses:
Sales and marketing	163,054	136,773	122,957
Research and development	36,954	33,421	30,669
General and administrative	34,207	29,823	26,159
Depreciation and amortization	3,775	3,514	3,582
Income from operations	35,771	31,849	20,506
Interest expense	(106)	(106)	(175)
Interest income	650	384	1,639
Income before income taxes	36,315	32,127	21,970
Income tax expense	(15,311)	(13,722)	(9,642)
Net income	$ 21,004	$ 18,405	$ 12,328
Net income per common share:
Basic	$ 0.49	$ 0.44	$ 0.29
Diluted	$ 0.45	$ 0.41	$ 0.28
Weighted average common shares outstanding:
Basic	43,283	42,133	41,983
Diluted	46,301	45,022	44,013

Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Mar. 31, 2011	Mar. 31, 2010	Mar. 31, 2009
Statement [Line Items]
Beginning balance, shares	43,053
Beginning Balance	$ 158,300	$ 111,289	$ 109,535
Stock-based compensation	15,623	14,912	11,299
Tax benefits relating to share-based payments	7,084	3,378	465
Exercise of common stock options and vesting of restricted stock units	17,158	10,284	2,726
Repurchase of common stock, Value	(31,458)	(48)	(25,229)
Comprehensive income:
Net income	21,004	18,405	12,328
Foreign currency translation adjustment	419	80	165
Total comprehensive income	21,423	18,485	12,493
Ending Balance	$ 188,130	$ 158,300	$ 111,289
Ending Balance, shares	43,965	43,053
Common Stock
Statement [Line Items]
Beginning balance, shares	43,053	41,593	42,750
Beginning Balance	$ 431	$ 416	$ 428
Exercise of common stock options and vesting of restricted stock units	$ 25	$ 15	$ 7
Exercise of common stock options and vesting of restricted stock units, shares	2,469	1,462	668
Repurchase of common stock, Value	$ (16)		$ (19)
Repurchase of common stock, Shares	(1,557)	(2)	(1,825)
Comprehensive income:
Ending Balance	$ 440	$ 431	$ 416
Ending Balance, shares	43,965	43,053	41,593
Additional Paid-In Capital
Statement [Line Items]
Beginning Balance	$ 239,012	$ 210,462	$ 204,386
Stock-based compensation	15,623	14,912	11,299
Tax benefits relating to share-based payments	7,084	3,378	465
Exercise of common stock options and vesting of restricted stock units	17,133	10,269	2,719
Repurchase of common stock, Value	(7,230)	(9)	(8,407)
Comprehensive income:
Ending Balance	271,622	239,012	210,462
Accumulated Deficit
Statement [Line Items]
Beginning Balance	(81,031)	(99,397)	(94,922)
Repurchase of common stock, Value	(24,212)	(39)	(16,803)
Comprehensive income:
Net income	21,004	18,405	12,328
Ending Balance	(84,239)	(81,031)	(99,397)
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Beginning Balance	(112)	(192)	(357)
Comprehensive income:
Foreign currency translation adjustment	419	80	165
Ending Balance	$ 307	$ (112)	$ (192)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2011	Mar. 31, 2010	Mar. 31, 2009
Cash flows from operating activities
Net income	$ 21,004	$ 18,405	$ 12,328
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,906	3,630	3,691
Noncash stock-based compensation	15,623	14,912	11,299
Excess tax benefits from stock-based compensation	(7,044)	(3,395)	(469)
Deferred income taxes	3,766	4,044	3,883
Changes in operating assets and liabilities:
Trade accounts receivable	(14,206)	(11,801)	(3,890)
Prepaid expenses and other current assets	(3,756)	(786)	(498)
Other assets	(314)	(97)	(473)
Accounts payable	(261)	27	(264)
Accrued liabilities	17,501	11,184	1,924
Deferred revenue	17,892	19,967	15,154
Other liabilities	(1,701)	1,157	424
Net cash provided by operating activities	52,410	57,247	43,109
Cash flows from investing activities
Purchase of short-term investments	(2,751)	(5,293)
Proceeds from maturity of short-term investments	6,644	250
Purchase of property and equipment	(3,865)	(3,370)	(4,539)
Net cash provided by (used in) investing activities	28	(8,413)	(4,539)
Cash flows from financing activities
Repurchase of common stock	(31,506)		(25,229)
Debt issuance costs			(104)
Proceeds from the exercise of stock options	17,158	10,284	2,726
Excess tax benefits from stock-based compensation	7,044	3,395	469
Net cash provided by (used in) financing activities	(7,304)	13,679	(22,138)
Effects of exchange rate - changes in cash	2,518	1,800	(2,888)
Net increase in cash and cash equivalents	47,652	64,313	13,544
Cash and cash equivalents at beginning of year	169,518	105,205	91,661
Cash and cash equivalents at end of year	217,170	169,518	105,205
Supplemental disclosures of cash flow information
Interest paid	106	106	175
Income taxes paid	$ 3,894	$ 4,130	$ 4,801

Summary of Significant Accounting Policies

12 Months Ended

Mar. 31, 2011

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of the Company. All intercompany transactions and balances have been eliminated.

Use of Estimates

The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, allowance for doubtful accounts, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates.

Revenue Recognition

The Company derives revenues from two primary sources, or elements: software licenses and services. Services include customer support, consulting, assessment and design services, installation services and training. A typical sales arrangement includes both of these elements.

For sales arrangements involving multiple elements, the Company recognizes revenue using the residual method. Under the residual method, the Company allocates and defers revenue for the undelivered elements based on relative fair value and recognizes the difference between the total arrangement fee and the amount deferred for the undelivered elements as revenue. The determination of fair value of the undelivered elements in multiple-element arrangements is based on the price charged when such elements are sold separately, which is commonly referred to as vendor-specific objective-evidence, or VSOE.

The Company’s software licenses typically provide for a perpetual right to use the Company’s software and are sold on a per-copy basis, on a capacity basis or as site licenses. Software licenses sold on a capacity basis provide the customer with unlimited licenses of specified software products based on a defined level of terabytes of data under management. Site licenses give the customer the additional right to deploy the software on a limited basis during a specified term. The Company recognizes software revenue through direct sales channels upon receipt of a purchase order or other persuasive evidence and when all other basic revenue recognition criteria are met as described below. The Company recognizes software revenue through all indirect sales channels on a sell-through model. A sell-through model requires that the Company recognize revenue when the basic revenue recognition criteria are met as described below and these channels complete the sale of the Company’s software products to the end-user. Revenue from software licenses sold through an original equipment manufacturer partner is recognized upon the receipt of a royalty report or purchase order from that original equipment manufacturer partner.

Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. To determine the price for the customer support element when sold separately, the Company primarily uses historical renewal rates, and in certain cases, it uses stated renewal rates. Historical renewal rates are supported by performing an analysis in which the Company segregates its customer support renewal contracts into different classes based on specific criteria including, but not limited to, the dollar amount of the software purchased, the level of customer support being provided and the distribution channel. As a result of this analysis, the Company has concluded that it has established VSOE for the different classes of customer support when the support is sold as part of a multiple-element sales arrangement.

The Company’s other professional services include consulting, assessment and design services, installation services and training. Other professional services provided by the Company are not mandatory and can also be performed by the customer or a third-party. In addition to a signed purchase order, the Company’s consulting, assessment and design services and installation services are, in some cases, evidenced by a Statement of Work, which defines the specific scope of such services to be performed when sold and performed on a stand-alone basis or included in multiple-element sales arrangements. Revenues from consulting, assessment and design services and installation services are based upon a daily or weekly rate and are recognized when the services are completed. Training includes courses taught by the Company’s instructors or third-party contractors either at one of the Company’s facilities or at the customer’s site. Training fees are recognized after the training course has been provided. Based on the Company’s analysis of such other professional services transactions sold on a stand-alone basis, the Company has concluded it has established VSOE for such other professional services when sold in connection with a multiple-element sales arrangement. The Company generally performs its other professional services within 90 days of entering into an agreement. The price for other professional services has not materially changed for the periods presented.

The Company has analyzed all of the undelivered elements included in its multiple-element sales arrangements and determined that VSOE of fair value exists to allocate revenues to services. Accordingly, assuming all basic revenue recognition criteria are met, software revenue is recognized upon delivery of the software license using the residual method.

The Company considers the four basic revenue recognition criteria for each of the elements as follows:

•

Persuasive evidence of an arrangement with the customer exists. The Company’s customary practice is to require a purchase order and, in some cases, a written contract signed by both the customer and the Company, or other persuasive evidence that an arrangement exists prior to recognizing revenue on an arrangement.

•

Delivery or performance has occurred. The Company’s software applications are usually physically delivered to customers with standard transfer terms such as FOB shipping point. Software and/or software license keys for add-on orders or software updates are typically delivered in an electronic format. If products that are essential to the functionality of the delivered software in an arrangement have not been delivered, the Company does not consider delivery to have occurred. Services revenue is recognized when the services are completed, except for customer support, which is recognized ratably over the term of the customer support agreement, which is typically one year.

•

Vendor’s fee is fixed or determinable. The fee customers pay for software applications, customer support and other professional services is negotiated at the outset of a sales arrangement. The fees are therefore considered to be fixed or determinable at the inception of the arrangement.

•

Collection is probable. Probability of collection is assessed on a customer-by-customer basis. Each new customer undergoes a credit review process to evaluate its financial position and ability to pay. If the Company determines from the outset of an arrangement that collection is not probable based upon the review process, revenue is recognized at the earlier of when cash is collected or when sufficient credit becomes available, assuming all of the other basic revenue recognition criteria are met.

The Company’s sales arrangements generally do not include acceptance clauses. However, if an arrangement does include an acceptance clause, revenue for such an arrangement is deferred and recognized upon acceptance. Acceptance occurs upon the earliest of receipt of a written customer acceptance, waiver of customer acceptance or expiration of the acceptance period.

Net Income per Common Share

Basic net income per common share is computed by dividing net income by the weighted average number of common shares during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and the vesting of restricted stock units. The dilutive effect of such potential common shares is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the computation of basic and diluted net income per common share:


	Year Ended March 31,
	2011		2010		2009
Net income	$	21,004	$	18,405	$	12,328

Basic net income per common share:
Basic weighted average shares outstanding		43,283		42,133		41,983

Basic net income per common share	$	0.49	$	0.44	$	0.29


Diluted net income per common share:
Basic weighted average shares outstanding		43,283		42,133		41,983
Dilutive effect of stock options and restricted stock units		3,018		2,889		2,030

Diluted weighted average shares outstanding		46,301		45,022		44,013

Diluted net income per common share	$	0.45	$	0.41	$	0.28

The following table summarizes the potential outstanding common stock of the Company at the end of each period, which has been excluded from the computation of diluted net income per common share, as its effect is anti-dilutive.

Year Ended March 31,

2011

2010

2009

Stock options and restricted stock units

1,002

728

3,162

Software Development Costs

Research and development expenditures are charged to operations as incurred. Based on the Company’s software development process, technological feasibility is established upon completion of a working model, which also requires certification and extensive testing. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release are immaterial.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable consist of amounts due to the Company from normal business activities. The Company maintains an allowance for estimated losses resulting from the inability of its customers to make required payments. The Company estimates uncollectible amounts based upon historical bad debts, evaluation of current customer receivable balances, age of customer receivable balances, the customer’s financial condition and current economic trends. The Company also maintains a sales allowance to reserve for potential credits issued to customers. The amount of the reserve is determined based on historical credits issued.

Accounting for Income Taxes

As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. This process involves estimating actual current tax exposure, including assessing the risks associated with tax audits, and assessing temporary differences resulting from different treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities. As of March 31, 2011, the Company had net deferred tax assets of approximately $33,779, which were primarily related to federal and state research tax credit carryforwards, stock-based compensation and foreign net operating loss carryforwards. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income, and to the extent that the Company believes recovery is not likely, the Company establish a valuation allowance. As of March 31, 2011, the Company maintains a valuation allowance against it deferred tax assets totaling $4,306 primarily related to the uncertainty of the Company’s ability to utilize certain state research tax credits before they expire.

The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in each of its tax jurisdictions. The number of years with open tax audits varies depending on the tax jurisdiction. A number of years may lapse before a particular matter is audited and finally resolved. On April 1, 2007, the Company adopted the guidance issued to address the accounting for uncertain tax positions. This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition.

As of March 31, 2011, the Company had unrecognized tax benefits of $4,481, all of which, if recognized, would favorably affect the effective tax rate. In addition, the Company had accrued interest and penalties of $842 related to the unrecognized tax benefits. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. Components of the reserve are classified as either current or long-term in the Consolidated Balance Sheet based on when the Company expects each of the items to be settled.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with maturities of three months or less to be cash equivalents. As of March 31, 2011, the Company’s cash and cash equivalents balance consisted primarily of money market funds.

Concentration of Credit Risk

The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal.

Sales through the Company’s reseller and original equipment manufacturer agreements with Dell totaled approximately 23%, 24% and 23% of total revenues for the years ended March 31, 2011, 2010 and 2009, respectively. Dell accounted for 25% and 27% of accounts receivable as of March 31, 2011 and 2010, respectively. Sales through the Company’s distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled approximately 25%, 24% and 21% of total revenues for the years ended March 31, 2011, 2010 and 2009, respectively. Arrow accounted for approximately 32% and 30% of total accounts receivable as of March 31, 2011 and 2010, respectively.

Fair Value of Financial Instruments

The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. As of March 31, 2011, the Company’s short-term investments balance consisted of certificates of deposit.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for such asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table summarizes the composition of the Company’s financial assets measured at fair value on a recurring basis at March 31, 2011 and March 31, 2010:


	March 31,
	2011		2010
Cash and cash equivalents:
Money market funds	$	182,911	$	143,236

All of the Company’s financial instruments in the table above were classified and measured as Level 1 instruments.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization. The Company provides for depreciation on a straight-line basis over the estimated useful lives of the assets. Computer and related equipment is generally depreciated over eighteen months to three years and furniture and fixtures are generally depreciated over three to five years. Leasehold improvements are amortized over the shorter of the useful life of the improvement or the term of the related lease. Expenditures for routine maintenance and repairs are charged against operations. Major replacements, improvements and additions are capitalized.

Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine the recoverability of its long-lived assets, the Company evaluates the estimated future undiscounted cash flows that are directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the long-lived asset. If the estimated future undiscounted cash flows demonstrate that recoverability is not probable, an impairment loss would be recognized. An impairment loss would be calculated based on the excess carrying amount of the long-lived asset over the long-lived asset’s fair value. The fair value is determined based on valuation techniques such as a comparison to fair values of similar assets. There were no impairment charges recognized during the years ended March 31, 2011, 2010 and 2009.

Deferred Revenue

Deferred revenues represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from the billing of annual customer support agreements, as well as billings for other professional services fees that have not yet been performed by the Company and billings for license fees that are deferred due to insufficient persuasive evidence that an arrangement exists. The value of deferred revenues will increase or decrease based on the timing of invoices and recognition of software revenue. The Company expenses internal direct and incremental costs related to contract acquisition and origination as incurred.

Deferred revenue consists of the following:


	March 31,
	2011		2010
Current:
Deferred software revenue	$	237	$	578
Deferred services revenue		97,980		82,534

	$	98,217	$	83,112


Non-current:
Deferred services revenue	$	14,695	$	9,140

Accounting for Stock-Based Compensation

The Company utilizes the Black-Scholes pricing model to determine the fair value of non-qualified stock options on the dates of grant. Restricted stock units are measured based on the fair market values of the underlying stock on the dates of grant. The Company recognizes stock-based compensation using the straight-line method for all stock awards.

The Company classifies benefits of tax deductions in excess of the compensation cost recognized (excess tax benefits) as a financing item cash inflow with a corresponding operating cash outflow. For the years ended March 31, 2011, 2010 and 2009, the Company includes $7,044, $3,395, and $469, respectively, as a financing cash inflow.

Share Repurchases

The Company considers all shares repurchased as cancelled shares restored to the status of authorized but unissued shares on the trade date. The aggregate purchase price of the shares of the Company’s common stock repurchased is reflected as a reduction to Stockholders’ Equity. The Company accounts for shares repurchased as an adjustment to common stock (at par value) with the excess repurchase price allocated between Additional Paid-in Capital and Accumulated Deficit. As a result of the Company’s stock repurchases in the fiscal years ended March 31, 2011 and 2010, the Company reduced common stock and additional paid-in capital by $7,246 and $9, respectively, and accumulated deficit by $24,212 and $39, respectively.

Sales Tax

The Company records revenue net of sales tax.

Advertising Costs

The Company expenses advertising costs as incurred. Advertising expenses were $3,819, $2,121, and $2,975 for the years ended March 31, 2011, 2010 and 2009, respectively.

Shipping and Handling Costs

Shipping and handling costs are included in cost of revenues for all periods presented.

Foreign Currency Translation

The functional currencies of the Company’s foreign operations are deemed to be the local country’s currency. Assets and liabilities of the Company’s international subsidiaries are translated at their respective period-end exchange rates, and revenues and expenses are translated at average currency exchange rates for the period. The resulting balance sheet translation adjustments are included in Other Comprehensive Income (Loss) and are reflected as a separate component of Stockholders’ Equity.

Foreign currency transaction gains and losses are recorded in “General and administrative expenses” in the Consolidated Statements of Income. The Company recognized net foreign currency transaction losses of $623 in the year ending March 31, 2011, net foreign currency transaction losses of $647 in the year ending March 31, 2010, and net foreign currency transaction gains of $907 in the year ending March 31, 2009. The net foreign currency transaction gains and losses recorded in “General and administrative expenses” include settlement gains and losses on forward contracts disclosed below.

To date, the Company has selectively hedged its exposure to foreign currency transaction gains and losses on the balance sheet through the use of forward contracts, which were not designated as hedging instruments. The duration of forward contracts utilized for hedging the Company’s balance sheet exposure is approximately one month. As of March 31, 2011 and March 31, 2010, the Company did not have any forward contracts outstanding. The Company recorded net realized gains of $48 and net realized losses of $34 in general and administrative expenses related to the settlement of a forward exchange contracts in the years ending March 31, 2011 and 2010, respectively. In the future, the Company may enter into additional foreign currency-based hedging contracts to reduce its exposure to significant fluctuations in currency exchange rates on the balance sheet.

Comprehensive Income

Comprehensive income is defined to include all changes in equity, except those resulting from investments by stockholders and distribution to stockholders. Comprehensive income for the fiscal years ending March 31, 2011, 2010 and 2009 is as follows:


	Year Ended March 31,
	2011		2010		2009
Net income	$	21,004	$	18,405	$	12,328
Foreign currency translation adjustment		419		80		165

Total comprehensive income	$	21,423	$	18,485	$	12,493

Impact of Recently Issued Accounting Standards

Fair Value Measurements

In January 2010, the FASB issued guidance requiring additional disclosure for significant transfers in and out of Levels 1 and 2 fair value measurements and the reasons for such transfers. This new guidance also requires separate disclosure information about purchases, sales, issuances, and settlements (on a gross basis rather than as one net number) in the reconciliation for fair value measurements using significant unobservable inputs (Level 3). In addition, this guidance clarifies existing disclosures regarding fair value measurement for each class of assets and liabilities and the valuation techniques and inputs used to measure fair value for recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3. The changes under this new guidance were effective for the quarterly period beginning January 1, 2010, except for the disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements, which are effective for the Company’s fiscal year beginning April 1, 2011. The adoption of these new accounting pronouncements will not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Stock Plans

12 Months Ended

Mar. 31, 2011

Stock Plans [Abstract]

Stock Plans

8. Stock Plans

As of March 31, 2011, the Company maintains two stock incentive plans, the 1996 Stock Option Plan (the “Plan”) and the 2006 Long-Term Stock Incentive Plan (the “LTIP”).

Under the Plan, the Company may grant non-qualified stock options to purchase 11,705 shares of common stock to certain officers and employees. Stock options are granted at the discretion of the Board and expire 10 years from the date of the grant. At March 31, 2011, there were 558 options available for future grant under the Plan.

The LTIP permits the grant of incentive stock options, non-qualified stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance stock awards and stock unit awards based on, or related to, shares of the Company’s common stock. On each April 1, the number of shares available for issuance under the LTIP is increased, if applicable, such that the total number of shares available for awards under the LTIP as of any April 1 is equal to 5% of the number of outstanding shares of the Company’s common stock on that April 1. As of March 31, 2011, approximately 718 shares were available for future issuance under the LTIP.

As of March 31, 2011, the Company has granted non-qualified stock options and restricted stock units under its stock incentive plans. Equity awards granted by the Company under its stock incentive plans generally vest quarterly over a four-year period, except that the shares that would otherwise vest quarterly over the first 12 months do not vest until the first anniversary of the grant. During fiscal 2011, the Company granted a total of 53 stock options and 28 restricted stock units to members of the Company’s Board of Directors that vest over a one year period. The Company anticipates that future grants under its stock incentive plans will continue to include both non-qualified stock options and restricted stock units.

The Company estimated the fair value of stock options granted using the Black-Scholes formula. The average expected life was determined according to the “simplified method”, which is the mid-point between the vesting date and the end of the contractual term. The Company will continue to use the “simplified” method until it has enough historical experience to provide a reasonable estimate of expected term. The risk-free interest rate is determined by reference to U.S. Treasury yield curve rates with a remaining term equal to the expected life assumed at the date of grant. Forfeitures are estimated based on the Company’s historical analysis of actual stock option forfeitures.

Expected volatility through the quarter ended September 30, 2008 was calculated based on reported data for a peer group of publicly traded companies for which historical information was available. During the quarter ended December 31, 2008, the Company began to incorporate its own data into the expected volatility assumption. The Company modified its expected volatility calculation because at that time its common stock had been publically traded for 2 years and it believed that CommVault specific volatility inputs should be included in the calculation of expected volatility. As a result, expected volatility during the second half of fiscal 2009 and all of fiscal 2010 and 2011 was calculated based on a blended approach that included historical volatility of a peer group, the implied volatility of the Company’s traded options with a remaining maturity greater than six months and the historical realized volatility of its common stock from the date of its initial public offering to the respective stock option grant date.

The assumptions used in the Black-Scholes option-pricing model are as follows:


	Year Ended March 31,
	2011	2010	2009
Dividend yield	None	None	None
Expected volatility	40% – 45%	40% – 45%		40% – 44%
Weighted average expected volatility	44%	42%		43%
Risk-free interest rates	1.18% – 2.93%	0.24% – 3.14%		1.54% – 3.84%
Expected life (in years)	6.2	6.3		6.4

The following table presents the stock-based compensation expense included in cost of services revenue, sales and marketing, research and development and general and administrative expenses for the years ended March 31, 2011, 2010 and 2009.


	Year Ended March 31,
	2011		2010		2009
Cost of services revenue	$	346	$	463	$	303
Sales and marketing		7,040		6,827		5,317
Research and development		1,719		2,030		1,605
General and administrative		6,518		5,592		4,074

Stock-based compensation expense	$	15,623	$	14,912	$	11,299

The Company recognized a tax benefit related to stock-based compensation of $5,352 in the year ended March 31, 2011, $5,135 in the year ended March 31, 2010 and $4,057 in the year ended March 31, 2009.

As of March 31, 2011, there was approximately $36,181 of unrecognized stock-based compensation expense, net of estimated forfeitures, related to non-vested stock option and restricted stock unit awards that is expected to be recognized over a weighted average period of 2.67 years. To the extent the actual forfeiture rate is different from what the Company has anticipated, stock-based compensation related to these awards will be different from the Company’s expectations.

The following summarizes the activity for the Company’s two stock incentive plans from March 31, 2008 to March 31, 2011:


						Weighted-
						Average
				Weighted-		Remaining		Aggregate
	Number of			Average		Contractual		Intrinsic
Options	Options			Exercise Price		Term (Years)		Value
Outstanding at March 31, 2008		8,086		$	8.84
Options granted		1,307			11.35
Options exercised		(460	)		5.94
Options forfeited		(136	)		12.44
Options expired		(18	)		12.98

Outstanding at March 31, 2009		8,779			9.30
Options granted		743			20.81
Options exercised		(1,246	)		8.25
Options forfeited		(183	)		14.46
Options expired		(23	)		17.01

Outstanding at March 31, 2010		8,070			10.38
Options granted		1,191			27.27
Options exercised		(2,066	)		8.30
Options forfeited		(144	)		15.62
Options expired		(17	)		11.61

Outstanding at March 31, 2011		7,034		$	13.75		6.24	$	183,818

Vested or expected to vest at March 31, 2011		6,908		$	13.48		6.16	$	181,724

Exercisable at March 31, 2011		4,437		$	9.48		4.85	$	134,890

The weighted average fair value of stock options granted was $12.23 per share, $9.31 per share, and $5.14 per share during the years ended March 31, 2011, 2010 and 2009, respectively. The total intrinsic value of options exercised was $39,119, $15,795, and $4,079 in the years ended March 31, 2011, 2010 and 2009, respectively. The Company’s policy is to issue new shares upon exercise of options as the Company does not hold shares in treasury.

Restricted stock unit activity is as follows:


				Weighted
	Number			Average
	of			Grant Date
Non-Vested Restricted Stock Units	Awards			Fair Value
Non-vested as of March 31, 2008		665		$	15.81
Granted		593			11.92
Vested		(208	)		16.14
Forfeited		(58	)		15.89

Non-vested as of March 31, 2009		992			13.44
Granted		329			20.67
Vested		(216	)		14.95
Forfeited		(94	)		14.67

Non-vested as of March 31, 2010		1,011			15.33
Granted		507			26.96
Vested		(403	)		14.44
Forfeited		(105	)		17.71

Non-vested as of March 31, 2011		1,010		$	21.27

The total fair value of the restricted stock units that vested during the years ended March 31, 2011, 2010 and 2009 was $10,157, $4,245 and $2,660, respectively.

The following table summarizes information on stock options outstanding under the Plan and LTIP at March 31, 2011:


	Options		Weighted-Average				Options		Weighted-
	Outstanding		Remaining				Exercisable at		Average
Range of Exercise Prices	March 31, 2011		Contractual Life		Exercise Price		March 31, 2011		Exercise Price
$4.00 – 5.30		1,593		3.52	$	4.57		1,593	$	4.57
6.00 – 10.56		904		3.24		6.54		872		6.41
11.12 – 13.50		1,096		7.24		11.39		551		11.65
13.81 – 16.99		1,533		6.71		15.23		1,171		15.36
17.19 – 23.54		745		8.07		21.21		250		19.19
23.88 – 35.60		1,163		9.57		27.41		0		0.00

$4.00 – 35.60		7,034		6.24	$	13.75		4,437	$	9.48

Income Taxes

12 Months Ended

Mar. 31, 2011

Income Taxes [Abstract]

Income Taxes

9. Income Taxes

The components of income before income taxes were as follows:


	Year Ended March 31,
	2011		2010		2009
Domestic	$	31,553	$	29,927	$	19,579
Foreign		4,762		2,200		2,391

	$	36,315	$	32,127	$	21,970

The components of income tax (expense) benefit were as follows:


	Year Ended March 31,
	2011			2010			2009
Current:
Federal	$	(9,539	)	$	(5,545	)	$	(2,504	)
State		(2,242	)		(2,378	)		(1,137	)
Foreign		250			(1,614	)		(2,210	)
Deferred:
Federal		345			(4,569	)		(4,388	)
State		(4,040	)		345			(1,063	)
Foreign		(85	)		39			1,660

	$	(15,311	)	$	(13,722	)	$	(9,642	)

A reconciliation of the statutory tax rates and the effective tax rates for the years ended March 31, 2011, 2010 and 2009 are as follows:


	Year Ended March 31,
	2011			2010			2009
Statutory federal income tax expense rate		(35.0	)%		(35.0	)%		(35.0	)%
State and local income tax expense, net of federal income tax effect		(3.9	)		(4.4	)		(2.6	)
Impact of state tax rate change on deferred tax assets		(0.5	)		0.5			(5.1	)
Foreign earnings taxed at different rates		(0.5	)		(2.3	)		(1.2	)
Permanent differences		(1.5	)		(2.3	)		(2.4	)
Foreign tax credits		1.4			(3.5	)		2.1
Research credits		5.0			4.1			3.7
Tax reserves		4.6			(1.9	)		(1.7	)
Change in valuation allowance		(11.9	)		—			—
Other differences, net		0.1			2.1			(1.7	)

Effective income tax expense		(42.2	)%		(42.7	)%		(43.9	)%

Deferred tax assets arise due to the recognition of income and expense items for tax purposes, which differ from those used for financial statement purposes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income, and to the extent that the Company believes recovery is not likely, the Company establishes a valuation allowance. The significant components of the Company’s deferred tax assets are as follows:


	March 31,
	2011			2010
Deferred tax assets:
Tax credits	$	18,239		$	22,223
Stock-based compensation		10,656			9,804
Deferred revenue		3,438			3,139
Net operating losses		2,625			3,119
Depreciation and amortization		1,255			1,233
Allowance for doubtful accounts the other reserves		961			238
Accrued expenses		911			1,422

Total deferred tax assets		38,085			41,178
Less: valuation allowance		(4,306	)		—

Net deferred tax assets	$	33,779		$	41,178

During the quarter ended March 31, 2011, the Company recorded valuation allowances totaling $4,306 against its deferred tax assets. Specifically, the Company recorded a valuation allowance of $4,212 against certain state research tax credits due to uncertainties related to the ability to utilize such state research tax credits before they expire. The Company based its valuation allowance on its estimates of taxable income by legal entity and the period over which its state research tax credits will be recoverable. In addition, the Company recorded a valuation allowance of $94 against foreign net operating loss carryforwards in a certain international jurisdiction. In assessing the need for a valuation allowance against its net operating loss carryforwards in such international jurisdiction, the Company considered projected future income as part of its analysis.

It is the Company’s intention to reinvest undistributed earnings of its foreign subsidiaries and thereby infinitely postpone their remittance. As a result, deferred U.S. income taxes have not been provided on undistributed earnings of foreign subsidiaries of the Company. The cumulative amount of unremitted earnings from the foreign subsidiaries that is expected to be permanently reinvested was approximately $653 on March 31, 2011.

Excess tax benefits related to share-based payments are credited to equity. When determining this excess tax benefit, the Company elected to follow the tax law approach. As a result, the Company’s excess tax benefit which was recorded to equity was approximately $7,084 and $3,378 for the years ended March 31, 2011 and 2010.

At March 31, 2011, the Company has state net operating loss (NOL) carryforwards of approximately $2,074 and NOL carryforwards for foreign tax purposes of approximately $9,241.

At March 31, 2011, the Company has federal and state research tax credit (R&D credits) carryforwards of approximately $11,443 and $5,078, respectively. The federal research tax credit carryforwards expire from 2014 through 2030, and the state research tax credit carryforwards expire from 2014 through 2026. At March 31, 2011, the Company has federal Alternative Minimum Tax credit carryforwards of $1,202.

The Company conducts business globally and as a result, files income tax returns in the United States and in various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as the United States, Australia, Canada, Germany, Netherlands and United Kingdom. The Company is not currently under audit in any tax jurisdiction. The following table summarizes the tax years in the Company’s major tax jurisdictions that remain subject to income tax examinations by tax authorities as of March 31, 2011. The years subject to income tax examination in the Company’s foreign jurisdictions cover the maximum time period with respect to these jurisdictions. Due to NOL carryforwards, in some cases the tax years continue to remain subject to examination with respect to such NOLs.


		Years Subject to Income
Tax Jurisdiction		Tax Examination

U.S. Federal		2001 - Present
New Jersey		2002 - Present
Foreign jurisdictions		2006 - Present


Balance at March 31, 2008	$	4,942
Additions for tax positions related to fiscal 2009		150
Additions for tax positions related to prior years		—
Settlements		—
Reductions related to the expiration of statutes of limitations		—
Foreign currency translation adjustment		(553	)

Balance at March 31, 2009		4,539
Additions for tax positions related to fiscal 2010		447
Additions for tax positions related to prior years		127
Settlements		—
Reductions related to the expiration of statutes of limitations		—
Foreign currency translation adjustment		116

Balance at March 31, 2010		5,229
Additions for tax positions related to fiscal 2011		512
Additions for tax positions related to prior years		86
Settlements		—
Reductions related to the expiration of statutes of limitations		(1,447	)
Foreign currency translation adjustment		101

Balance at March 31, 2011	$	4,481

All of the Company’s unrecognized tax benefits at March 31, 2011 of $4,481, if recognized, would favorably affect the effective tax rate. Components of the reserve are classified as either current or long-term in the Consolidated Balance Sheet based on when the Company expects each of the items to be settled. Accordingly, the Company has recorded its unrecognized tax benefits of $4,481 and $5,229 and the related accrued interest and penalties of $842 and $1,394 in Other Liabilities on the Consolidated Balance Sheet at March 31, 2011 and March 31, 2010, respectively. The Company believes that it is reasonably possible that approximately $352 of it currently remaining unrecognized tax benefits and approximately $141 of related accrued interest and penalties may be realized by the end of the fiscal year ending March 31, 2012 as a result of the lapse of the statute of limitations. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. In the years ended March 31, 2011, 2010 and 2009, the Company recognized $152, $138 and $215, respectively, of interest and penalties in the Consolidated Statement of Income.

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2011	Mar. 31, 2010
Current assets:
Allowance for doubtful trade accounts receivable	$ 106	$ 292
Stockholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000	50,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	250,000	250,000
Common stock, shares issued	43,965	43,053
Common stock, shares outstanding	43,965	43,053

Nature of Business	12 Months Ended
Nature of Business	Mar. 31, 2011
Nature of Business [Abstract]
Nature of Business	1. Nature of Business CommVault Systems, Inc. and its subsidiaries (“CommVault” or the “Company”) is a leading provider of data and information management software applications and related services. The Company develops, markets and sells a suite of software applications and services, primarily in North America, Europe, Australia and Asia, that provides its customers with high-performance data protection; data migration and archiving; snapshot management and replication of data; integrated source and target deduplication; e-discovery and compliance solutions; protection, recovery and discovery of data in virtual server environments; enterprise-wide search capabilities; and management and operational reports, remote services and troubleshooting tools. The Company’s unified suite of data and information management software applications, which is sold under the Simpana brand, shares an underlying architecture that has been developed to minimize the cost and complexity of managing data on globally distributed and networked storage infrastructures. The Company also provides its customers with a broad range of professional and customer support services.

Credit Facility	12 Months Ended
Credit Facility	Mar. 31, 2011
Credit Facility [Abstract]
Credit Facility	5. Credit Facility In July 2008, the Company entered into a credit facility in which the Company could have borrowed up to $40,000 over the initial 12 months of the credit facility. Borrowings under the facility were available to repurchase the Company’s common stock under its share repurchase program and to provide for working capital and general corporate purposes. The credit facility expired on July 9, 2009 because no amounts were borrowed during the initial 12 months of the credit facility. In July 2009, the Company entered into an amended and restated credit facility in which the Company can borrow up to $30,000 over a three year period. Borrowings under the amended and restated credit facility are available to repurchase the Company’s common stock under its share repurchase program and to provide for working capital and general corporate purposes. Repayment of principal amounts borrowed under the amended and restated credit facility is required at the maturity date of July 2012. The amended and restated credit facility contains financial covenants that require the Company to maintain a quick ratio and minimum earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined in the credit agreement. Borrowings under the amended and restated credit facility bear interest, at the Company’s option, at either i) LIBOR plus a margin ranging from 2.25% to 2.75% or ii) the bank’s base rate plus a margin ranging from 1.75% to 2.25%. The bank’s base rate is defined as the higher of the federal funds rate plus 1.5%, one-month LIBOR plus 1.5%, or the lender’s prime rate. The Company pays a quarterly commitment fee that ranges from 0.35% to 0.50% per annum based on the unused portion of the amended and restated credit facility. As of March 31, 2011, the Company was in compliance with all required covenants, and there were no outstanding balances on the amended and restated credit facility.

Capitalization	12 Months Ended
Capitalization	Mar. 31, 2011
Capitalization [Abstract]
Capitalization	7. Capitalization As of March 31, 2011 and 2010, the Company had 250,000 shares of common stock and 50,000 shares of preferred stock authorized. As of March 31, 2011 and 2010, there were no shares of preferred stock outstanding. On November 13, 2008, the Board of Directors of the Company adopted a Rights Plan and declared a dividend distribution of one Right for each outstanding share of common stock to shareholders of record on November 24, 2008. Each Right, when exercisable, entitles the registered holder to purchase one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per share, at a purchase price of eighty dollars per one one-thousandth of a share, subject to adjustment. Of the 50,000 shares of preferred stock authorized under the Company’s certificate of incorporation, 150 have been designated as Series A Junior Participating Preferred. The Rights will become exercisable following the tenth business day after (i) a person or group announces the acquisition of 15% or more of the Company’s common stock or (ii) commencement of a tender or exchange offer, the consummation of which would result in ownership by the person or group of 15% or more of the Company’s common stock. The Company is also entitled to redeem the Rights at $0.001 per right under certain circumstances. The Rights expire on November 14, 2018, if not exercised or redeemed. *Common Stock* The Company had 43,965 and 43,053 shares of common stock, par value $0.01, outstanding at March 31, 2011 and March 31, 2010, respectively. In January 2008, the Company’s Board of Directors approved a stock repurchase program, which authorized the Company to repurchase up to $40,000 of its common stock. The Company’s Board of Directors authorized additional increases of $40,000 in July 2008 and $40,000 in July 2010 to the Company’s existing share repurchase program. As of March 31, 2011, the Company is authorized to repurchase up to a total of $120,000 of its common stock through March 31, 2012. As of March 31, 2011, the Company has repurchased approximately $71,748 under the share repurchase authorization and may repurchase an additional $48,252 of its common stock under the current program through March 31, 2012. *Shares Reserved for Issuance* The Company has reserved 8,044 shares to allow for the exercise of all outstanding options and vesting of restricted stock units at March 31, 2011.

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Mar. 31, 2011
Employee Benefit Plan [Abstract]
Employee Benefit Plan	10. Employee Benefit Plan The Company has a defined contribution plan, as allowed under Section 401(k) of the Internal Revenue Code, covering substantially all employees. The Company may make contributions equal to a discretionary percentage of the employee’s contributions determined by the Company. The Company has not made any contributions to the defined contribution plan.