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What economic crisis? Big Data powers cash cascade at CommVault

Backup bucks up: bucking the trend

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Backup and archive software supplier CommVault is becoming a profit-making machine with its net profits as a percentage of revenues rising from 7.2 per cent two years ago to 11.8 per cent in its second fiscal 2013 quarter. There is also no indication of any slowdown in enterprise spending - companies like EMC should be so lucky.

The trend is steady now, as the chart below shows, although spiky in the past, with the last three quarters showing 6.9, 8.6. 9.1 and now 11.8 per cent net profit. There's clearly demand for its products - especially in Big Data software and services - and it appears to be developing, producing and delivering them more efficiently.

CommVault profit history

Second quarter fiscal 2013 revenues were $118.2m, an increase of 21 per cent over the second quarter of fiscal 2012 and an increase of 6 per cent over the prior quarter. Net income was $13.9m compared to $7.9m a year ago and $10.1m in the first 2013 quarter. CEO Robert Hammer runs a tight and predictable financial ship here. Revenues and profits beat Street estimates.

CommVault Q2 fy2013 revenue trends

We expect a new release of its Simpana virtualisation product early next year, Simpana rev 10.0, and CommVault looks set to weather increasing competition from Symantec and EMC well, and should keep its edge over reselling partner Dell's own products. ®

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