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Compellent Reports Q3
New and repeat end user orders fuel revenue growth of 112%
November 17, 2007
2 Min Read
EDEN PRAIRIE, Minn. -- Compellent Technologies, Inc. (NYSE Arca:CML) announced today its financial results for the third quarter ended September 30, 2007. Revenue grew 112% to $13.4 million compared with $6.3 million in the third quarter of 2006. In addition, Compellent completed its initial public offering in early October, raising approximately $85 million, including full exercise of the green shoe.”
“Our third quarter results demonstrate the strong end user demand for our enterprise-class network storage solutions,” said Phil Soran, president and CEO of Compellent. “Our triple-digit revenue growth was driven by new end users adopting virtualized storage as the foundation of their data centers and an increasing percentage of revenue from existing installations.”
Revenue Growth Driven by Focus on Midsized Enterprise Storage Market
“The storage market for midsize enterprises is large and growing,” continued Mr. Soran. “We believe that our sophisticated yet simple storage solutions meet the specific needs of this important market and looking forward, we see even greater opportunities to help end users lower their overall costs of storing, managing and protecting their data.”
Other third quarter 2007 financial highlights:
The number of end users at the end of the third quarter was 642, which represents an 89% increase from the end of the third quarter of 2006.
Revenue from existing end users year to date increased to 39% of total revenue, from 32% through the first six months of 2007 and 21% through all of 2006.
Product support and services revenue was $2.2 million and represented 17% of total revenue. This is up from $885,000 in the third quarter of 2006 when it represented 14% of total revenue.
Gross margin was 49.9%, up from 47.8% in the second quarter of 2007. This increase was driven primarily by higher product support and services margins.
Operating expenses in the third quarter of 2007 were 88% above the 2006 third quarter, primarily due to investments in research and development and additional sales and marketing efforts necessary to support future revenue growth.
Net loss of $(2.0) million, or $(0.45) per share, a decrease from a net loss of $(7.8) million, or $(1.94) per share, in the third quarter of 2006. Included in the 2006 third quarter results was a one-time charge of $6.3 million for the accretion of redeemable convertible preferred stock.
For the nine month period ended September 30, 2007, revenue increased 117% from the comparable period in 2006 to $34.3 million from $15.8 million. For the nine month period, the company reported a net loss of $(6.0) million, or $(1.40) per share, compared with a net loss of $(11.2) million, or $(2.80) per share, for the same period of 2006.
Compellent Technologies Inc.
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