Financial

posted on 06 August 2008 10:16

SAN storage vendor Compellent reported a fabulous second quarter with a 74 percent revenue rise to $21 million, compared to Q2 07's $12.1 million, and a 68 percent decrease in its net loss.

It was a 15 percent sequential rise from Q1 08 and Compellent's 11th successive growth quarter.

Net loss was $603,000 ($0.02/share) compared with Q2 07's net loss of $1.9 million ($0.45/share), a 68 percent improvement.

The half year figures were revenues of $39.3 million, 88 percent up on H1 07's $20.9 million, and net loss of $2.2 million ($0.07/share) compared to the year-ago period's net loss of $4.1 million ($0.95/share).

Phil Soran, president and CEO of Compellent, said: “We continue to generate robust growth in revenue, new end user additions, and increased margins despite the slowdown of IT spending in the U.S. Demand for our cost-effective and energy efficient storage remains strong, driven by our ability to offer sophisticated data management, protection and recovery features typically required by large enterprises to a broad range of customers. ... We continue to make steady progress to profitability with advances on both the technology side and through business execution. We have matured nicely and gained significant acceptance in the market,”

It looks as if, were progress to be maintained, that Q3 08 could be profitable as could Q4. That brings up the prospect of Compellent recording profits for the full year as well.

Q4, a similarly situated SAN storage vendor, one selling to larger enterprises, has just reported its first quarterly profit.

Gross margin was 54.1 percent, an increase of 6.3 percentage points from Q2 07 and 1.9 percentage points from Q1 08.

Product revenue totaled $17.0 million in Q2 08, 67 percent up on Q2 07. Q2 08 product support and services revenue was $4.0 million, a 113 percent increase from the same period in 2007.

Sales to new customers represented 59 percent of product revenue for 2008, while the existing customer base represented 41 percent.

Compellent recently reported its 1,000th customer.

^{[Chris Mellor.]}