Commvault (NASDAQ: CVLT) today announced its financial results for the first quarter ended June 30, 2016.

N. Robert Hammer, Commvault's Chairman, President and CEO stated, "We began fiscal year 2017 with a solid first quarter, highlighted by year-over-year software revenue growth of 13% and significant year-over-year improvement in operating performance. We are also pleased that Gartner has positioned Commvault as a Leader in the Magic Quadrant for Data Center Backup and Recovery for a sixth consecutive year. We believe placement in the new Magic Quadrant validates our strategy to help companies manage and protect their data, and to flexibly adopt new technologies, in particular the cloud. The move to the cloud continues to be a major factor contributing to our continued business momentum as our software solutions help customers solve critical challenges as they migrate to the cloud or deploy big data storage infrastructures. We expect that these factors, combined with continued successful market adoption of software solutions based on the new Commvault Data Platform and associated services, will drive our fiscal 2017 revenue growth objectives."

Total revenues for the first quarter of fiscal 2017 were $152.4 million, an increase of 10% year-over-year, and 11% on a year-over-year constant currency basis. Software revenue was $63.9 million, an increase of 13% year-over-year, and up 15% on a year-over-year constant currency basis. Services revenue in the quarter was$88.5 million, an increase of 7% year-over-year, and 8% on a year-over-year constant currency basis.

On a GAAP basis, loss from operations (EBIT) was $2.5 million for the first quarter compared to a loss of $6.3 million in the prior year. Non-GAAP EBIT increased 62% to $15.0 million in the quarter compared to $9.3 millionin the prior year.

For the first quarter of fiscal 2017, Commvault reported a GAAP net loss of $2.0 million, or a $0.05 loss per diluted share. Non-GAAP net income for the quarter was $9.5 million, or $0.21 per diluted share, versus $0.12per diluted share in the first quarter of fiscal 2016.

Operating cash flow totaled $24.0 million for the first quarter of fiscal 2017. Total cash and short-term investments were $410.2 million as of June 30, 2016 compared to $387.2 million as of March 31, 2016. During the quarter, there were no borrowings against the revolving credit facility or repurchases of Commvault's shares. As of July 26, 2016, there is $93.1 million available under the share repurchase program that currently expires on March 31, 2017.

A reconciliation of GAAP to non-GAAP results has been provided in Financial Statement Table IV included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."

Recent Business Highlights:

• On June 14, 2016, Commvault announced it was positioned by Gartner, Inc. in the Leaders quadrant of the recently released Magic Quadrant for Data Center Backup and Recovery Software. Gartner positioned Commvault highest on execution and furthest on completeness of vision, marking Commvault's sixth consecutive year as a leader in Gartner's market evaluation for backup and recovery. [1]
• On June 22, 2016, Commvault introduced an early adopter program for two new Endpoint Data Protection and Email Archive Software as Service (SaaS) offerings to address the on-going market shift for Cloud-based solutions. Customers participating in the early adopter program can use the fully-managed cloud service to automatically and securely backup data on employee laptops and desktops and archive email, reducing the risk of data loss from breaches and lost or stolen endpoint devices. In addition to protecting against data loss, the SaaS offerings enable enterprise-wide compliance and eDiscovery of data on endpoints and in email.
• On June 2, 2016, Commvault announced that MEDITECH, a leading provider of electronic health records (EHRs), certified Commvault's data protection and recovery solution for its EHR system with Hewlett Packard Enterprise (HPE) 3PAR Storage Arrays. With this certification, healthcare providers will have access to a fully integrated and modernized data management solution that can backup, archive and recover MEDITECH applications, as well as clinical, business and other applications and data, both on premise and in the cloud via MEDITECH's network of solution integrators and hosting service providers.
• On April 19, 2016, Commvault announced support for Amazon Web Services (AWS) Snowball, a secure petabyte-scale transport solution to help companies migrate large amounts of data into and out of the AWS Cloud. Commvault's strategic relationship with AWS helps customers move to the cloud faster, more efficiently, and more securely than a traditional Internet connection. The announcement underscores Commvault's leadership in providing customers with new options to leverage the cloud for disaster recovery, development/test, and other workloads while keeping their data protected and accessible at all times.

About the Magic Quadrant

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About Commvault

Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform modern data environments. With solutions and services delivered directly and through a worldwide network of partners and service providers, Commvault solutions comprise one of the industry's leading portfolios in data protection and recovery, cloud, virtualization, archive, file sync and share. Commvault has earned accolades from customers and third party influencers for its technology vision, innovation, and execution as an independent and trusted expert. Without the distraction of a hardware business or other business agenda, Commvault's sole focus on data management has led to adoption by companies of all sizes, in all industries, and for solutions deployed on premise, across mobile platforms, to and from the cloud, and provided as-a-service. Commvault employs more than 2,000 highly skilled individuals across markets worldwide, is publicly traded on NASDAQ (CVLT), and is headquartered in Tinton Falls, New Jersey in the United States. To learn more about Commvault — and how it can help make your data work for you — visit commvault.com.