Feeds

Compellent pulls off a strong quarter

Boringly booming business as usual

Build a business case: developing custom apps

Compellent has shown steady growth again, recording $32.2m revenues in its third 2009 period in a 31 per cent rise on the previous quarter.

The result was a 12 per cent increase on 2008's third quarter. Net income was $2.3m, up from the year-ago period's $0.46m.

The company gained 136 new customers in the quarter taking its installed customer base to 1,627. The gross margin was 57.2 per cent, compared to 53.7 per cent in the previous quarter.

With Compellent's track record, this is getting a bit humdrum. CEO Phil Soran reflected this sentiment, saying in the earnings call transcript: "Well, this is another exceptional quarter for Compellent."

Referencing the Savvis win he said Compellent is getting "increased attention from large enterprise users". Soran said Compellent was getting attention in larger accounts and that this would lead to more opportunities over time, but nothing was said about making product upgrades to appeal more directly to enterprise accounts.

If Compellent turns its attention more to enterprise customers then we might expect an increase in the product's ability to withstand drive failures and so forth, with higher levels of reliability and availability.

Compellent has a very lean business model and enterprise sales typically have a much higher level of service activity. Compellent does have a professional services organisation and is investing in it, but not to any degree that would seem exceptional.

Still, Dell has made that transition from SME to enterprise sales, and it is tempting to think of Compellent moving upscale. Equally, though, it could add a small enterprise focus with even easier-to-use arrays.

Soran said the economic environment is getting better: "We are seeing positive signs of improvement. It is significantly better than two quarters ago."

He is confident about next year and talked of increasing Compellent's spend in engineering and in sales. We should see "additional investment in sales and engineering... [We are] currently making plans for 2010. We see opportunity to increase our sales force and engineering teams at rates that are higher than 2009."

The outlook for the fourth quarter is for revenues between $34m and $36m, which would make full year 2009 revenues of $123m to $125m.

Clearly the company knows what it's doing in its chosen medium enterprise market and is on a roll with its efficient block storage arrays. There's no reason not to suppose that the same story will be repeated in January, 2010, with a fourth quarter showing higher revenues, more net income and an increased customer count. ®

Boost IT visibility and business value

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.