Commvault Systems, Inc. (NASDAQ:CVLT) Q3 2015 Earnings Conference Call - Final Transcript

Jan 28, 2015 • 08:30 am ET

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Commvault Systems, Inc. (NASDAQ:CVLT) Q3 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good morning and welcome to the Third Quarter 2015 CommVault Earnings Conference Call. My name is Brandon and I'll be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded and I will now turn the meeting over Michael Picariello. You may begin, sir.

Executive
Michael Picariello

Good morning. Thanks for dialing in today for our fiscal third quarter 2015 earnings call. With me on the call are Bob Hammer, Chairman, President, and Chief Executive Officer; Al Bunte, Chief Operating Officer; and Brian Carolan, Chief Financial Officer.

(Forward-Looking Cautionary Statements) Our earnings press release was issued over the wire services earlier today and it also has been furnished to the SEC as an 8-K filing. The press release is also available on our Investor Relations Web-site.

On this conference call, we will provide non-GAAP financial results. The reconciliation between the non-GAAP and GAAP measures can be found on Table IV accompanying the press release and posted on our Web-site. This conference call is also being recorded for replay and is being webcast. An archive of today's webcast will be available on our Web-site following the call.

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

Executive
Michael Picariello

Good morning everyone and thank you for joining our fiscal third quarter 2015 Earnings Call. We continue to make good progress against our business transformation and operational performance objectives. The financial results for Q3 2015 were in line with our expectations going into the quarter after factoring in to significant negative impact, the changes in foreign currency exchange rates.

Many of the key elements of our current transformation are now in place and that pace of our transformation is accelerating. This transformation is designed to bring us back to historical financial performance in the second half of next fiscal year by implementing pricing, packaging and distribution changes that are better align with changes in the market and improving the productivity of our sales teams. I'm pleased to report that we're making solid progress in building a foundation to get us back the performance in the second half of next fiscal year.

For example, the initial market response to our standalone virtualization solution set, which includes the VM backup recovery and cloud management solutions exceeding both revenue and new account expectations. Over 200 accounts purchase of this product in the quarter, over a half of which were new customers. These results are encouraging. We expect to release additional new standalone products in March

Executive
Michael Picariello

which I will address later on in the call. Let me briefly summarize the Q3 financial results; total revenues were 153 million flat year-over-year and up 1% sequentially. Software revenue was 71.7 million down 9% year-over-year and 3% sequentially, services revenue was 81.3 million and grew 10% year-over-year and was down 1% sequentially. On a sequential constant currency basis, total revenue is 156.9 million. On the sequential constant currency basis software revenues is