Feeds

Data Domain revs up but profits crash

Sees sales rise in next quarter

Secure remote control for conventional and virtual desktops

Data deduplication array vendor Data Domain reported revenues 50 per cent up year-on-year for its first fiscal 09 quarter, contrasting strongly with recession/redundancy/write-off news from suppliers around the industry.

Q1 fy09 revenues were $79m ($52.6m in Q1 fy08), 7 per cent higher than the preceding quarter. Net income was down though, at $1.3m ($0.02/share), compared to the $2.7m ($0.04/share) in Q1 fy08. Sequentially it was horribly down from Q4 fy08's $13.9m, but that was artificially boosted by a $13.2m tax rebate, so we can set that aberration aside.

Frank Slootman, the company's president and CEO, said: "The company added 218 new customers during the quarter, increasing its worldwide roster of customers to over 3,100." For comparison Isilon added only 48 new customers in its equivalent quarter. There was also an increase in the number of deals worth in excess of $1m, 11 this quarter compared to 5 in the previous one.

Although competitors, such as EMC, HP, IBM, NetApp and others, have all added deduplication to their storage products, Data Domain has been able to retain a perceived deduplication performance lead by increasing its software efficiency and adding Xeon 5400 quad-core-based controllers. This is a lead it aims to keep - Nehalem here we come.

The company, unlike many others, issued guidance for next quarter, forecasting revenues of $82m - $87m and net income of $0.1/share to -$0.01/share, with profitability still being under pressure. ®

Internet Security Threat Report 2014

More from The Register

next story
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
The DRUGSTORES DON'T WORK, CVS makes IT WORSE ... for Apple Pay
Goog Wallet apparently also spurned in NFC lockdown
Cray-cray Met Office spaffs £97m on VERY AVERAGE HPC box
Only 250th most powerful in the world? Bring back Michael Fish
Microsoft brings the CLOUD that GOES ON FOREVER
Sky's the limit with unrestricted space in the cloud
'ANYTHING BUT STABLE' Netflix suffers BIG Europe-wide outage
Friday night LIVE? Nope. The only thing streaming are tears down my face
Google roolz! Nest buys Revolv, KILLS new sales of home hub
Take my temperature, I'm feeling a little bit dizzy
IBM, backing away from hardware? NEVER!
Don't be so sure, so-surers
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.