CommVault climbs as 4Q revenue jumps 32 percent
Wednesday May 14, 11:13 am ET
CommVault Systems shares rise as 4th-qtr profit declines but revenue grows over 32 percent
NEW YORK (AP) -- CommVault Systems Inc. shares climbed Wednesday after the company said its fiscal fourth-quarter earnings and revenue topped Wall Street expectations.
The Oceanport, N.J.-based storage and data management software company's shares rose $1.96, or 13.8 percent, to $16.21 in morning trading. In the past year, the stock has traded between $10.96 and $23.04.
Late Tuesday, CommVault said that for the quarter that ended March 31 its income after paying preferred dividends totaled $6.2 million, or 14 cents per share, down from year-ago profit of $51.8 million, or $1.16 per share, which included a hefty tax benefit.
On an adjusted basis, CommVault earned 19 cents per share.
The company's revenue rose to $56.6 million from $42.6 million, as software and services revenue increased.
Analysts polled by Thomson Financial expected an adjusted profit of 18 cents per share on $54.1 million in revenue.
CommVault's software revenue rose 32.2 percent to $31.3 million, while services revenue grew 33.6 percent to $25.3 million. The company said it saw market penetration growth and strong demand for its Simpana Software Suite.
For its fiscal 2008, CommVault's earnings after paying preferred dividends totaled $20.8 million, or 46 cents per share, compared with a loss of $41.3 million, or $1.35 per share, in the prior year. The company's revenue rose to $198.3 million from $151.1 million.
CommVault's fiscal 2008 per-share earnings were calculated with a significantly greater number of shares than in 2007.
Looking ahead, CommVault forecast fiscal 2009 adjusted earnings of between 70 cents and 72 cents per share on revenue of about $245 million. Analysts, whose estimates generally exclude special items, expect a profit of 70 cents on $239.9 million in revenue.
In a Wednesday client note, Goldman Sachs analyst Derek R. Bingham raised his price target to $18 from $17 as he increased his earnings estimates for the company.
Bingham called CommVault's fourth-quarter results "strong." He said its outlook "affirmed the stability and attractive growth profile of the franchise against a wall of worry that had developed over the past several months regarding spending plans and share loss."
