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Tue, Jul. 29, 9:08 AM
Fri, Apr. 25, 12:47 PM
Fri, Apr. 25, 9:13 AM
Mon, Mar. 17, 9:43 AM
- VMware (VMW +2.2%) has been started at Buy by Monness Crespi.
- SAP (SAP +2.2%) has been upgraded to Buy by Citi.
- VeriSign (VRSN -8.8%) has been cut to Market Perform by Cowen. The downgrade comes as the NTIA announces it will relinquish control of the Internet's domain name management system to an international body. VeriSign insists the move won't affect its operation of the .com and .net registries.
- CommVault (CVLT +3.3%) has been upgraded to Buy by Mizuho.
- RingCentral (RNG +4.5%) has been started at Outperform by William Blair.
- NetScout (NTCT +0.1%) has been cut to Neutral by D.A. Davidson.
- RPX (RPXC +3%) has been started at Outperform by Cowen.
- Cadence (CDNS +1.4%) has been started at Overweight by Piper.
Mon, Feb. 10, 9:51 AM
- F5 (FFIV +1.1%) has been started at Buy by Dougherty & Co. The company beat FQ1 estimates and issued strong guidance last month.
- FireEye (FEYE +3.7%) has been started at Outperform by Wells Fargo. Q4 results arrive tomorrow.
- Maxim (MXIM +1.9%) has been upgraded to Strong Buy by Raymond James.
- CommVault (CVLT +0.6%) has been upgraded to Outperform by JMP. Shares tanked two weeks ago due to the cautious CC remarks provided with an FQ3 beat.
- Ingram Micro (IM +1.8%) has been upgraded to Buy by Brean.
- CalAmp (CAMP +2.2%) has been started at Strong Buy by Midtown Partners.
Wed, Jan. 29, 2:42 PM
- Though it beat FQ3 estimates, CommVault (CVLT -8.9%) noted on its FQ4 CC (transcript) a recent survey "indicates a slower start to 2014."
- The company also mentioned there are "execution risks" related to its All Things Data strategy, through which the storage backup/recovery software vendor plans to expand into a slew of adjacent storage software markets, including replication, mobile file-sharing, archiving, infrastructure analytics, and health care storage software.
- CommVault adds it still considers FY14 (ends in March) analyst estimates to be "reasonable," and predicts it will see "solid double-digit revenue and EBIT growth" in FY15. The company's FY15 revenue consensus already calls for 15.7% growth.
- Software revenue (drives future services revenue) rose 20% Y/Y in FQ3, even with total revenue growth. CommVault's deferred revenue balance rose 19% Y/Y to $192.8M.
Wed, Jan. 29, 12:46 PM
Wed, Jan. 29, 9:13 AM
Thu, Jan. 16, 2:14 PM
- William Blair's Jason Ader thinks CommVault's (CVLT +6.3%) consensus FQ3 (Dec. quarter) revenue estimate ($144M) "does not represent a high hurdle," given the storage software vendor's ongoing momentum at large enterprises.
- Ader also reports reseller checks once again indicated "CommVault remains the superior solution in the large-enterprise backup space despite Symantec's (SYMC +0.5%) recent NetBackup 7.6 release and recent IBM investments in the Tivoli Storage Manager (TSM) platform."
- Piper downplayed the threat posed by NetBackup 7.6 in a December note, and declared pricing fears unwarranted given CommVault already undercuts Symantec by 20%-25%.
- CommVault shares have badly underperformed the Nasdaq in recent months due to a combo of growth concerns and steep multiples. CommVault reports on the morning of Jan. 29, and Symantec in the afternoon.
Dec. 17, 2013, 12:54 PM
- Piper's Andrew Nowinski is reiterating an Overweight and $96 PT for CommVault (CVLT +7.7%), and argues several investor concerns are misplaced.
- Nowinski chalks up recent comments from COO Al Bunte about being slightly behind plan for FY14 (ends March '14) as being "more reflective of the overall tech spending environment" than any company-specific issues, and still thinks CommVault is on track to meet its FY14 outlook. The company stated on its FQ2 CC (transcript) it's comfortable with consensus estimates.
- Nowinski also: 1) Dismisses the threat posed by a pending refresh for Symantec's (SYMC +1.2%) NetBackup suite, arguing none of the new features provided are reasons for concern. 2) Calls CommVault's high-teens revenue growth target "very doable," given share gains, new analytics features, and improving cloud service provider penetration. 3) Thinks price cut fears are unwarranted, particularly since CommVault already undercuts Symantec by 20%-25%.
- Before today's move, CommVault had been down YTD in what has been a very good year for tech stocks. Shares fell following October's FQ2 report, in part due to worries about slowing deferred revenue growth.
Nov. 25, 2013, 9:36 AM
Oct. 29, 2013, 1:31 PM
- Though CommVault (CVLT -5.5%) beat FQ2 estimates and said it's comfortable with FY14 (ends March '14) consensus estimates, the storage software vendor's deferred revenue balance only totaled $157.1M at quarter's end. That's up just 3% Y/Y (compares with rev. growth of 20%), and is fueling concerns about a growth slowdown.
- With shares trading at 48x FY14E EPS going into the report, there wasn't much margin for error. EMC and Symantec have already posted weaker-than-expected top-line numbers for the Sep. quarter.
- Outside of the deferred revenue figure, FQ2 numbers were solid. Software revenue +20% Y/Y to $70.8M, services revenue +21% to $71M. Both growth rates matched FQ1 levels.
- $47.2M has been added to CommVault's buyback program, raising its total authorization to $150M. No buybacks took place in FQ2.
- Sales/marketing spend rose 20% Y/Y to $67.1M. R&D spend rose 17%, but only amounted to $13.3M (9% of revenue).
- Piper is defending CommVault, arguing any near-term weakness is due to deal timings.
Oct. 23, 2013, 4:52 PM
- Symantec (SYMC) expects FQ3 revenue of $1.63B-$1.67B (down from $1.79B a year ago) and EPS of $0.41-$0.43, below a consensus of $1.79B and $0.51.
- Moreover, FY14 (ends March '14) revenue is now expected to drop 3%-4% Y/Y; the consensus is for 0.5% growth.
- Symantec's endpoint (PC/mobile) security software sales (44% of revenue) fell 3% YY in FQ2 after dropping 1% in FQ1. Enterprise security software (19% of revenue) -2% Y/Y, a reversal from FQ1's +7%. Likewise, storage software (37% of revenue) sales fell 5% after rising 4% in FQ1.
- CEO Steve Bennett called FQ2 "a challenging quarter in [Symantec's] transition year," but doesn't give details in the PR about specific about demand issue. Symantec has carried out major job cuts this year, and is also facing tough competition from security startups,EMC's RSA unit, and fast-growing storage software vendors CommVault (CVLT) and Veeam.
- FQ2 EPS was lifted by $125M in buybacks. The deferred revenue balance stood at $3.5B at quarter's end, -3% Y/Y.
- SYMC -13.1% AH. FQ2 results, PR.
Oct. 15, 2013, 10:05 AM
- A week after some of them temporarily fell in response to Citrix's warning, enterprise IT names are slumping on account of Teradata's Q3/2013 warning, which was largely the result of weaker-than-expected Asian numbers.
- Three other data warehousing/business intelligence software providers - Informatica (INFA -4.4%), MicroStrategy (MSTR -4.1%), and Qlik (QLIK -3.3%) are among the biggest decliners. The companies rallied in August in response to Teradata's better-than-feared Q2 report.
- Other decliners: EMC -1.8%. NTAP -2.1%. CVLT -2.5%. FFIV -2%. JIVE -2.2%. NOW -2%.
- Teradata isn't alone among enterprise IT names in seeing its Asian ops underperform. Cisco and Oracle have reported similar issues.
Sep. 24, 2013, 12:50 PM
- Several enterprise IT names are lower after Red Hat reported weaker-than-expected Aug. quarter billings and issued soft top-line guidance yesterday afternoon, and Red Hat, EMC (EMC -1.2%), NetApp (NTAP -0.5%), and F5 (FFIV -2.2%) were hit with downgrades this morning.
- Notable decliners include Citrix (CTXS -2.6%), VMware (VMW -1.9%), SolarWinds (SWI -2.1%), Teradata (TDC -2.1%), CommVault (CVLT -2.1%), and Radware (RDWR -2.4%). Red Hat partly blamed its performance on weak European demand.
- Barclays' Ben Reitzes suggests his downgrades of EMC and NetApp are partly valuation calls (both companies are near his PTs). But he adds "there may be more upside in networking names today" in light of "long-term headwinds to storage demand." The growth of cloud infrastructure platforms relying on commodity hardware (AWS being the most notable) is generally viewed as a threat to storage incumbents.
- William Blair cut NetApp to Underperform last week, raising concerns about executive departures, a flash memory-focused refresh to EMC's VNX mid-range storage line, and the Cisco-Whiptail deal.
- Goldman's Kent Schofield, who cut F5 to Neutral, says he thinks Street estimates now take into account F5's application delivery controller (ADC) refresh cycle and Cisco ADC displacements.
Jul. 30, 2013, 2:39 PM
- CommVault (CVLT +10.3%) is back near its all-time highs after providing FQ1 results and CC remarks that suggest its storage backup/recovery software share gains aren't slowing down.
- CEO Neil Hammer mentioned on the CC "there could be upside" to FY14 estimates on account of a strong deal pipeline and share gains, and healthy interest in the recently-announced Simpana 10 (the latest version of CommVault's flagship backup/restore suite). But he added U.S. federal and European IT spending issues make current estimates "reasonable."
- The FQ1 beat was fueled in part by spending controls and lower-than-expected employee growth (+57 Q/Q). That, in turn, helped EBIT margin grow 30 bps Q/Q and 300 bps Y/Y to 38%.
- Deferred revenue totaled $189.2M at quarter's end, +3% Q/Q and +31% Y/Y.
- Symantec (SYMC +1.7%), which CommVault has taken some share from, is up moderately ahead of today's FQ1 report. Shares +31% YTD on optimism about new CEO Steve Bennett's efforts to cut costs, return cash, and deliver more integrated software solutions.
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CommVault Systems Inc is a provider of data and information management software applications and related services. It develops, markets and sells a suite of software applications and services, primarily in North America, Europe, Australia and Asia.
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