Glum Commvault vaults out of the well it's been stuck in for months
Revenue rise and return to profits at software biz
All the hard work over the past few quarters at Commvault has paid off with a return to profits and increased revenues.
In its third fiscal 2016 quarter, ended Dec 31, 2015, its revenues of $155.7m were up 11 per cent sequentially, 2 per cent year-over-year, and 6 per cent on a year-over-year constant currency basis.
GAAP net income of $4.9m was 60 per cent higher than the year-ago quarter's $3.1m and resoundingly better than the -$9.2m loss reported in the second fiscal 2016 quarter. Net income was 3.15 per cent of revenues, so it has some way to go to reach the 10–12 per cent routinely reported in fiscal 2014, and glory days looking back.
Software revenue was $71.4 million, an increase of 24 per cent sequentially, flat year-over-year, but up 4 per cent on a constant currency basis. Services revenue in the quarter was $84.3 million, an increase of 1 per cent sequentially, 4 per cent year-over-year; 9 per cent in constant currency terms.
Quarterly revenues and net income for Commvault to Q3 fy2016
It certainly looks as if the business has turned a corner after the struggles throughout fiscal 2015 and the first half of fiscal 2016.
Chairman, CEO and president Bob Hammer was pleased and bragged: "Our sequential software revenue growth of 24 per cent was the result of outstanding execution in the Americas and EMEA driven by strong enterprise transaction close rates."
He thinks, "We believe we are in an excellent position to capitalize on the unique opportunities in front of us, including increasing our market share in our core data protection and management business, expanding our cloud-based offerings, and accelerating our move into certain vertical markets." Competitors better watch out then.
Commvault said it had made an equity investment in Laitek, Inc., a supplier of data migration and storage services for healthcare picture archiving and communication system (PACS) replacements. It says that, by combining Laitek's data migration expertise with Commvault's healthcare data protection and information management capabilities, hospitals will get better control of their clinical data – managing and protecting it for the long term.
What about the full year? Fiscal 2015's revenue total was $607.5m with net income of $25.7m. Currently fiscal 2016 totals $435.4m, about $172m short. Seasonally the fourth quarter's revenues have been higher than the third quarter, except in fiscal 2015.
A $160m fourth quarter would be good news on the annual compare front, and $170m-plus would be fantastic, $173m amazing. Can it be done? Get firing on all cylinders Commvault sales, switch on the turbocharger, turn on the supercharger, light the afterburners, and go for it. ®