Data Domain Earnings Jump

SANTA CLARA, Calif. -- Data Domain, Inc. (Nasdaq: DDUP) today announced results for its third quarter ended September 30, 2008. Net revenue for the third quarter of 2008 was $75.0 million, an increase of 23% from the second quarter of 2008 and an increase of 134% from the third quarter of 2007.

Under U.S. generally accepted accounting principles (GAAP”), Data Domain posted net income of $3.2 million for the third quarter of 2008, or $0.05 per diluted share. This compares to GAAP net income of $1.7 million, or $0.03 per diluted share, in the second quarter of 2008, and a GAAP net loss of $0.9 million, or $0.02 per diluted share, in the third quarter of 2007.

Excluding the impact of stock-based compensation and related taxes in all periods, non-GAAP net income for the third quarter of 2008 was $8.1 million, or $0.12 per diluted share, compared to non-GAAP net income of $6.5 million, or $0.10 per diluted share, in the second quarter of 2008, and non-GAAP net income of $2.6 million, or $0.05 per diluted share, in the third quarter of 2007.

"Our results for the third quarter of 2008 included record revenues, strong gross margins and significant growth in our customer base," said Frank Slootman, president and chief executive officer of Data Domain. “A record 355 new customers were added during this past quarter, bringing Data Domain’s cumulative customer count to over 2,500 worldwide that have purchased our products since 2004. Demand continued to accelerate for the DD690, which we announced in May as the industry’s highest performance inline deduplication storage system for backup and other nearline applications. In addition, we noted expanded use of our systems for mixed storage applications such as archiving.”

Data Domain Inc.