Posted by: Dave Raffo
The economy took a bite out of CommVault last quarter, as the backup software vendor recorded lower sales than expected.
CommVault’s $60.1 million in revenue was below its guidance of $63 million to $65 million, and actually dropped 5% from the previous quarter — unusual because the fourth quarter of the year is when the most money is spent on storage. CommVault also reduced its forecast for this quarter to approximately $63 million to $67 million, down from previous guidance of $69 million to $72 million.
“We are certainly not happy with these results,” CommVault CEO Bob Hammer said on his company’s earnings call Wednesday night.
Hammer said CommVault’s win rate against its competitors hasn’t dropped, but larger deals are taking longer to get approved because of budget constraints. The company has increased its sales force to try and get things moving, and is counting on a boost from Simpana 8 released last week. Simpana 8 adds block-level data deduplication for data on disk and tape, and Hammer said CommVault released it ahead of schedule.
Still, CommVault’s forecast shows it might take awhile for Simpana sales to take off.
“We’re realistic about the state of the global economy,” Hammer said. “This uncertainty is why we have revised our guidance down. We’re dealing with an environment none of us has seen before.”