CommVault Systems Inc CVLT
Q1 2011 Earnings Call Transcript

Transcript Call Date 07/13/2010

Operator: Good morning, ladies and gentlemen, and welcome to the CommVault Conference Call. At this time, all participants are in a listen-only mode. Following today’s presentation, instructions will be given for the question-and-answer session.

At this time, for opening remarks and introductions, I would like to turn the call over to Mr. Michael Picariello, Director of Investor Relations. Please go ahead, sir.

Michael Picariello - Director of IR: Good morning. Thanks for joining the CommVault conference call and webcast to review preliminary financial results for the first fiscal quarter of 2011. With me on the call are Bob Hammer, Chairman, President and Chief Executive Officer; Al Bunte, Chief Operating Officer; and Lou Miceli, Chief Financial Officer.

Before we begin, I’d like to remind everyone that statements made during this call including in the question-and-answer session at the end of the call that relate to future results and projections are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on our current expectations. Actual results may differ materially due to a number of risks and uncertainties which are discussed in our SEC filings and in the cautionary statement contained in our press release and on our website.

The Company undertakes no responsibility to update the information in this conference call under any circumstance. Our preliminary earnings press release was issued over the wire services last evening and has also been furnished to the SEC as an 8-K filing. The press release is also available on our IR website.

On this conference call, we will discuss preliminary non-GAAP financial results. This conference call is also being recorded for replay and is being webcast. An archive of today’s webcast will be available on our website following the call.

I will now turn the call over to our CEO and President, Mr. Bob Hammer.

N. Robert Hammer - Chairman, President and CEO: Thank you, Michael. Thanks everyone for joining us today. By now, you have seen our preliminary earnings announcement for our first fiscal quarter of 2011. Our financial results for the quarter were very disappointing to me and the entire CommVault team. The results were surprising, given our solid track record during the heart of the recession and our strong finish in fiscal 2010.

We believe that given this momentum heading into fiscal 2011, we would be able to perform much better than we actually delivered in Q1. However, I remain confident that the Company is well positioned in the market, and we can deliver strong double-digit growth in fiscal 2011. Our products and support services remain best in class, and our partners and strategic relationships are the strongest that they've ever been.

Despite the performance in the first quarter, I remain highly confident in the effectiveness of our worldwide sales force, which has executed extremely well over the past year and is staffed to meet our FY '11 growth objectives.

It is important to note that our performance this quarter was not the result of losing deals to the competitors. We expect that a majority of the deals that slipped out of Q1 will close in Q2. Beginning with our lower than expected preliminary results, which have yet to be reviewed by our auditors, we expect revenue to be approximately $66.3 million, up 10% from the first quarter of 2010 and down 10% sequentially from the fourth quarter of 2010.

Read our Earnings Call Transcript disclaimer.
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