3PAR Reports Q1

FREMONT, Calif. -- 3PAR Inc. (NYSE Arca: PAR), the leading global provider of utility storage, today reported results for the first quarter of fiscal year 2009, which ended June 30, 2008. Revenue for the first fiscal quarter was $43.0 million, an increase of 80% compared to revenue of $23.8 million for the same period a year ago and an increase of 21% compared to $35.5 million in the prior quarter, which ended March 31, 2008.

For the first fiscal quarter, GAAP net income was $678,000 or $0.01 per share compared to GAAP net loss of $4.7 million or ($0.26) per share for the same period in the prior year. Non-GAAP net income, which excludes the impact of stock-based compensation expense, for the first fiscal quarter of 2009 was $2.0 million or $0.03 per share compared to non-GAAP net loss of $4.1 million or ($0.23) per share for the same period in the prior year.

This quarter, 3PAR benefited from the recognition of certain product revenue that had previously been recognized on a ratable basis. As a result of establishing fair value during this quarter for the support services bundled with these transactions back in March 2007, 3PAR recognized $2.2 million of deferred revenue that relates to the product portion of the March 2007 transactions. Excluding this one-time revenue recognition, product revenue would have been $37.7 million, total revenue would have been $40.7 million, and 3PAR would have reported a GAAP net loss of $827,000 or ($0.01) per share. Also, excluding this one-time revenue recognition, 3PARs non-GAAP net income would have been $460,000 or $0.01 per share.

“We are pleased to see 3PAR deliver another strong quarter of improved revenue growth and operating leverage,” said David Scott, President and Chief Executive Officer for 3PAR. “We are also delighted that, taking into account the recognition of previously deferred revenue, we reached an important milestone of profitability on a GAAP basis.”

3PAR Inc.