Feeds

No green shoots for 3PAR

Situation actually getting worse

Internet Security Threat Report 2014

Installation delays and lowered demand have depressed 3PAR's quarterly results, and it sees no green shoots of recovery looking ahead.

For its first fiscal 2010 quarter, ended June 30, it expects to report revenues of $44.2m - $44.5m. This is an increase of just 3-4 per cent year-on-year but an 8-9 per cent decline compared to the previous quarter, in which revenues were 37 per cent up year-on-year. Growth is slowing down substantially.

The original guidance for the quarter was $48m - $50m. Delays in customer installations pushed revenue recognition into the current quarter and there was generally weaker demand in the quarter. A concentration of sales on large orders didn't help either.

As a result 3PAR expects to report a loss of $1.84m - $2.45m for the quarter (based on its earnings per share numbers).

3PAR also made a loss in its previous quarter, of $907,000, which closed is fiscal 2009 year. That year showed a loss of $959,000.

There is no immediate light at the end of the recession tunnel as, for its next quarter, 3PAR hopes to see revenues of $43m - $47m, which would compare to the year-ago quarter's $45.1m.

President and CEO David Scott said 3PAR was disappointed with its sequential revenue decrease. Talking of the demand decline pattern, Scott said: "This phenomena increased in intensity towards the end of our first quarter, similar to the turbulence we experienced at the end of our fiscal 2009 third quarter, as there was a renewed reluctance amongst prospective and existing customers to commit to major capital expenditures.”

It seems as if 3PAR is experiencing a double dip in demand from its enterprise customers.

It has reduced its guidance for full fiscal 2010 revenues to $190m - $205m, compared to fiscal 2009's $184.7m, with likely profit in the range of $0.0 - $6.15m (based on EPS numbers). The previous 2010 guidance was for $205m - $210m. 3PAR has also said it is unlikely to sustain a 40 - 45 per cent CAGR between its IPO in November, 2007, and the end of its 2011 financial year.

Losses and lowered forecasts show that, for 3PAR, the recession is continuing and showing no signs of improvement at all. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.