Commvault Systems, Inc. Announces Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended December 31, 2017; provides earnings Guidance for fourth quarter and full year of fiscal 2018 and 2019
January 24, 2018 at 06:14 pm IST
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Commvault Systems, Inc. announced unaudited consolidated financial results for the third quarter and nine months ended December 31, 2017. For the quarter, the company reported total revenues of $180,366,000 against $167,061,000 a year ago. Income from operations was $3,478,000 against $3,842,000 a year ago. Income before income taxes was $3,676,000 against $3,621,000 a year ago. Net loss was $58,945,000 against net income of $1,959,000 a year ago. Diluted net loss per common share was $1.30 against EPS of $0.04 a year ago. Net cash provided by operating activities was $31,210,000 against $26,768,000 a year ago. Purchase of property and equipment was $2,663,000 against $2,405,000 a year ago. Non-GAAP income from operations was $22,025,000 against $23,674,000 a year ago. Non-GAAP net income was $14,100,000 against $14,964,000 a year ago. Non-GAAP diluted net income per share was $0.30 against $0.32 a year ago. Non-GAAP free cash flow was $28,547,000 against $24,363,000 a year ago. Gross margins were 86.6% for the quarter. Operating margins were 12.2% for the quarter, resulting in operating income or EBIT of approximately $22 million.
For the nine months, the company reported total revenues of $514,478,000 against $478,273,000 a year ago. Loss from operations was $5,538,000 against income of $556,000 a year ago. Loss before income taxes was $4,957,000 against income of $131,000 a year ago. Net loss was $60,239,000 against $705,000 a year ago. Diluted net loss per common share was $1.33 against $0.02 a year ago. Net cash provided by operating activities was $60,828,000 against $71,054,000 a year ago. Purchase of property and equipment was $5,297,000 against $4,485,000 a year ago. Non-GAAP income from operations was $53,487,000 against $56,897,000 a year ago. Non-GAAP net income was $34,240,000 against $35,920,000 a year ago. Non-GAAP diluted net income per share was $0.72 against $0.77 a year ago. Non-GAAP free cash flow was $55,531,000 against $66,569,000 a year ago.
For the fourth quarter and full year, the company expects total revenue should approximate $187 million which reflects company continued move to subscription-based pricing and recent lower close rates of large 7-figure deals. EBIT margin percentage to be approximately 13.4% resulting in a full year EBIT margin percentage of approximately 11.2%. Company continues to expect full year free cash flow to slightly exceed non-GAAP EBIT.
For 2018, for the sake of consistency company will continue to use a non-GAAP tax rate of 37% for the remainder of fiscal 2018. The company continue to expect full year 2018 free cash flow to slightly exceed non-GAAP EBIT.
For 2019, company expects total revenue of appropriately $780 million and EBIT of $105 million that would result in margin expansion of approximately 230 basis points. Company currently expects cash taxes to be approximately $7 million. However, based on initial modeling of the new U.S. income tax reform company currently expect that company will reduce non-GAAP tax rate from 37% to approximately 27% which should align with anticipated long term cash tax rate.
Commvault Systems, Inc. is a data management company. The Company offers cyber resilience platform that combines the data security and rapid recovery at enterprise scale across any workload. The Company provide these products and services for their data across many types of environments, including on-premises, hybrid and multi-cloud. Its offerings are delivered via self-managed software, software-as-a-service (SaaS), integrated appliances, or managed by partners. The Companyâs Commvault Cloud offerings are organized in three packages, such as Operational Recovery, Autonomous Recovery and Cyber Recovery. Its Operational Recovery provides backup, verifiable recovery, and cost-optimized cloud workload mobility, helping to ensure data availability and granular recovery, even across multiple clouds all managed with Commvaultâs Command Center. In addition, the Company provides customers with a range of offerings, including Cleanroom Recovery, HyperScale X, Air Gap Protect and Compliance.
Commvault Systems, Inc. Announces Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended December 31, 2017; provides earnings Guidance for fourth quarter and full year of fiscal 2018 and 2019