Commvault's record revenues walloped by US tax law tweaks

Yay! Oh, wait. Aww...

By Chris Mellor

Posted in Storage, 24th January 2018 17:23 GMT

Commvault has reported record quarterly revenues but took a dramatic GAAP thrashing due to US tax law changes.

Revenues for the data manager's third fiscal 2018 quarter were $180.4m, up 8.8 per cent annually and 13 per cent sequentially.

Net loss was $58.9m, but Commvault said it recorded approximately "$59.0m of non-cash income tax charges related to the combined impact of the lower US corporate income tax rate on deferred tax assets and recording a valuation allowance against the remaining value of deferred tax assets".

Commvault revenues and GAAP net income to Q3 FY 2018


Operating cash flow in the quarter was $31.2m, a 17 per cent year-over-year increase.

Software and products revenue was $81.4m, an increase of 4 per cent year-over-year, and 13 per cent sequentially. Services revenue in the quarter was $98.9m, an increase of 12 per cent year-over-year and 3 per cent sequentially. Subscription-based pricing represented approximately 20 per cent of its year-to-date software revenue, more than double the historical run rate.

It looks good, except the Street was expecting more.

William Blair analyst Jason Ader said: "Commvault reported weak fiscal third-quarter results this morning, missing consensus by $2m on revenue and $0.01 on earnings per share. Software revenue was again the culprit, coming in $3m below consensus, though up 13 per cent sequentially. Services revenues was strong (up 12 per cent year-over-year), which is helping offset some of the software weakness."

Wells Fargo senior analyst Aaron Rakers talked of a modest revenue and earnings-per-share miss. Guidance for the next quarter will be forthcoming in the earnings call. ®

Sign up to our NewsletterGet IT in your inbox daily

1 Comment

More from The Register

Missing out on a bunch of big-ass deals dented Commvault revenues

Analysis But Cisco still wants to be friends, and the delayed sales are trickling in

Commvault cosies up to Google Cloudies, vows to keep you safe from dreaded GDPR

Plus: Trying to make storage 'cool' in Antartica

Commvault shifts slowly uphill as it gears into hyperconverged drive

Takes small loss as it vows to deliver the goods later this fiscal year

Commvault scale-out appliance gunning for Rubrik and Cohesity

Rubrik has new competition in the space

Judges dismisses majority of Cisco's 'insane' IP defence against Arista

Switch antitrust case rumbles on

AMD lures Cisco's server CTO into EPYC new gig

Exclusive Raghunath Nambiar is also a player on the Transaction Processing Performance Council

Commvault boss Hammer and pals nail a profit – but only just

Street-beating protector and archiver basks in analyst love

Commvault revenues growing nicely but profits ain't

Investing for growth and hoping rising profits will follow

Another week, another Cisco-security-kit-needs-a-patch story

Probing last week's ASA and Firepower flaws found another DDOS to deter

Cisco to release patches for Meltdown, Spectre CPU vulns, just in case

Switchzilla is investigating a whole bunch of products