Feeds

Data Domain revs up but profits crash

Sees sales rise in next quarter

Mobile application security vulnerability report

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. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.