GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

CommVault Systems Inc. Reports Operating Results (10-Q)

February 03, 2011 | About:
10qk

10qk

18 followers
CommVault Systems Inc. (CVLT) filed Quarterly Report for the period ended 2010-12-31.

Commvault Systm has a market cap of $1.42 billion; its shares were traded at around $33.08 with a P/E ratio of 73.5 and P/S ratio of 5.2. Hedge Fund Gurus that owns CVLT: Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC, Stanley Druckenmiller of Duquesne Capital Management, LLC.

Highlight of Business Operations:

Using the average foreign currency exchange rates from the corresponding fiscal 2010 period, our total revenues, cost of revenues and operating expenses from non-U.S. operations for the three months ended December 31, 2010 would have been higher by approximately $0.3 million, by less than $0.1 million, and $0.2 million, respectively. For the nine months ended December 31, 2010, our total revenues, cost of revenues and operating expenses from the non-U.S. operations would have been higher by approximately $0.9 million, by less than $0.1 million, and $0.5 million, respectively.

In addition, we are exposed to risks of foreign currency fluctuation primarily from cash balances, accounts receivables and intercompany accounts denominated in foreign currencies and are subject to the resulting transaction gains and losses, which are recorded as a component of general and administrative expenses. We recognized net foreign currency transaction gains of $0.1 million and net foreign currency transaction losses of $0.3 million in the three and nine months ended December 31, 2010, respectively, and net foreign currency transaction losses of $0.2 million and $0.7 million in the three and nine months ended December 31, 2009, respectively.

The weighted average fair value of stock options granted was $12.21 per share and $12.11 per share during the three and nine months ended December 31, 2010, respectively, and $10.27 per share and $9.35 per share during the three and nine months ended December 31, 2009. In addition, the weighted average fair value of restricted stock units awarded was $27.31 per share and $26.35 per share during the three and nine months ended December 31, 2010, respectively, and $22.37 per share and $20.41 per share during the three and nine months ended December 31, 2009, respectively.

As of December 31, 2010, we had unrecognized tax benefits of $4.9 million, all of which, if recognized, would favorably affect the effective tax rate. In addition, we have accrued interest and penalties of $1.2 million related to the unrecognized tax benefits. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. Components of the reserve are classified as either current or long-term in the Consolidated Balance Sheet based on when we expect each of the items to be settled. Accordingly, our unrecognized tax benefits of $4.9 million and the related accrued interest and penalties of $1.2 million are included in Other Liabilities on the Consolidated Balance Sheet. During the nine months ended December 31, 2010, we recognized $0.8 million of previously unrecognized tax benefits and $0.3 million of related accrued interest and penalties totaling $1.1 million as a result of the expiration of a statute of limitations in a foreign jurisdiction. We believe that it is reasonably possible that approximately $0.7 million of our currently remaining unrecognized tax benefits and approximately $0.2 million of related accrued interest and penalties may also be realized by the end of fiscal 2011 as a result of the lapse of the statute of limitations.

Total revenues increased $12.9 million, or 18%, from $70.7 million in the three months ended December 31, 2009 to $83.6 million in the three months ended December 31, 2010.

Software Revenue. Software revenue increased $6.5 million, or 19%, from $35.2 million in the three months ended December 31, 2009 to $41.8 million in the three months ended December 31, 2010. Software revenue represented 50% of our total revenues in both the three months ended December 31, 2010 and 2009. The increase in software revenue is primarily due to increased software revenue derived from our foreign locations, which increased 24% while software revenue derived from the United States grew 15% in the three months ended December 31, 2010 compared to the three months ended December 31, 2009. The growth in software revenue in foreign locations is primarily due to increases in Europe, Canada, Australia and Asia as we expand our international operations.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.6/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide