Feeds

3PAR shows not so sub-par results

Modest improvement

Top 5 reasons to deploy VMware with Tegile

3PAR has announced modestly improved results beating expectations and set against a still-depressed customer spending environment.

Revenues in its second 2009 quarter were $46.1m, a two per cent year-on-year increase, meaning a $1m improvement, and four per cent higher than the previous quarter. The net loss of $0.76m was down on the previous quarter's $1.8m and 2008's equivalent figure of $1.2m. Another two or three sales and 3PAR might have made a profit.

However, it is being run more efficiently; gross margin increased to 65.9 per cent for example, and as soon as there is an uptick in demand it should be well-positioned to benefit. Aaron Rakers, a Stifel Nicolaus analyst, said that there is concern about 3PAR possibly facing increased competition from EMC's Symmetrix V-Max, IBM's new DS8700 and its XIV array where a refresh is expected in the next few months. No material increase in competitive pressure on its revenues had been seen by 3PAR, though.

The company recognises revenue from a sale only when the system has been fully installed. Customers differ with the time needed to install a system and the period can be between three and five months after the purchase order is received. This means that there isn't a straight relationship in a quarter between purchase orders received and revenue recognised.

Unlike Quantum and Compellent, who have seen improved demand in their general market sectors, 3PAR has seen no improvement in customer spending patterns in its enterprise storage market. Still, it has detected an increase in demand in October which might make its next quarter better.

It's guiding people to expect third quarter revenues of between $45m and $51m, and hoping its new storage efficiency announcements will help it achieve the upper figure. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'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
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
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.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.