Commvault Systems (CVLT) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.04 million in the quarter, against a net profit of $4.88 million in the last year period. On the other hand, adjusted net income for the quarter stood at $13.33 million, or $0.28 a share compared with $13.19 million or $0.28 a share, a year ago.
Revenue during the quarter grew 6.52 percent to $165.84 million from $155.70 million in the previous year period. Gross margin for the quarter expanded 36 basis points over the previous year period to 87.24 percent. Total expenses were 99.25 percent of quarterly revenues, up from 97.75 percent for the same period last year. That has resulted in a contraction of 150 basis points in operating margin to 0.75 percent.
Operating income for the quarter was $1.24 million, compared with $3.51 million in the previous year period.
However, the adjusted operating income for the quarter stood at $21.07 million compared to $20.97 million in the prior year period. At the same time, adjusted operating margin contracted 76 basis points in the quarter to 12.71 percent from 13.47 percent in the last year period.
N. Robert Hammer, Commvault's chairman, president and chief executive officer stated, "Our third quarter results demonstrated continued business momentum and we reported strong financial performance highlighted by record quarterly revenue of $165.8 million and sequential software revenue growth of 10% which was driven by significant growth in enterprise software revenue transactions in our international operations. Our financial results are validating our leadership position in the enterprise market with our Commvault Data platform with a cloud focus which has continued to drive a substantial increase in the number of petabytes of data being managed by Commvault software within public cloud environments. The Commvault Data Platform is being used by customers to move, use, secure and protect their data on-premise, on mobile devices and in public clouds. Finally, we remained opportunistic during the third fiscal quarter, repurchasing $25 million of our common stock."
Operating cash flow improves significantlyCommvault Systems has generated cash of $71.05 million from operating activities during the nine month period, up 50.43 percent or $23.82 million, when compared with the last year period. The company has spent $26.16 million cash to meet investing activities during the nine month period as against cash outgo of $46.47 million in the last year period.
The company has spent $5.95 million cash to carry out financing activities during the nine month period as against cash outgo of $18.54 million in the last year period.
Cash and cash equivalents stood at $316.41 million as on Dec. 31, 2016, up 0.01 percent or $0.02 million from $316.40 million on Dec. 31, 2015.
Working capital increases
Commvault Systems has recorded an increase in the working capital over the last year. It stood at $301.60 million as at Dec. 31, 2016, up 8.66 percent or $24.03 million from $277.57 million on Dec. 31, 2015. Current ratio was at 2.13 as on Dec. 31, 2016, up from 2.09 on Dec. 31, 2015.
Days sales outstanding went down to 56 days for the quarter compared with 59 days for the same period last year.
At the same time, days payable outstanding went down to 3 days for the quarter from 4 for the same period last year.
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