Blue Harbour Sells Its Position in CommVault Systems



Blue Harbour and CommVault Systems

Blue Harbor exited its position in CommVault Systems (CVLT) in 4Q14. CVLT represented 1.24% of the hedge fund’s portfolio in 3Q14. According to the latest 13F filings for 4Q14, the fund sold 628,400 shares worth $31 million. CVLT makes up 0.06% of the iShares US Technology ETF (IYW).

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3Q15 revenue remains unchanged and net income declined

CommVault posted 3Q15 revenues of $153 million, which is flat compared to the revenues in the corresponding quarter a year ago. Software revenue in 3Q15 decreased by 9% year-over-year to $71.7 million, while services revenue in the third quarter of fiscal 2015 increased by 10% year-over-year to $81.3 million.

For the third quarter of fiscal 2015, CommVault’s net income declined to $3.1 million from $17.6 million in the corresponding period of the prior year. Non-GAAP (generally accepted accounting principles) net income for the quarter decreased by 41% to $15.9 million, or $0.34 per diluted share, from $26.9 million, or $0.54 per diluted share, in the corresponding period of the prior year.

CommVault partners with Crayon

In February 2015, CommVault announced its alliance with Crayon. CommVault in its press release said, “Under the partnership, CommVault’s industry leading data management software platform, Simpana, will be integrated into Crayon’s portfolio of leased software solutions for EMEA-based cloud hosting service providers.”

Crayon has a services provider license agreement (or SPLA) with Microsoft (MSFT) and is also one of the top three Microsoft SPLA partners globally. Crayon has a SPLA with Citrix (CTXS) and VMware (VMW) also.

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CommVault signs a deal with NaviSite

CommVault recently signed a deal with NaviSite, a Time Warner Cable Company and a leading worldwide provider of enterprise-class cloud-enabled hosting, managed applications, and services.

Under this agreement, NaviSite will support CommVault to offer Infrastructure-as-a-Service (or IaaS) solutions to its customers. CommVault in a press release said, “CommVault will provide data protection and management capabilities for customers using NaviCloud Director, an enterprise-class cloud Infrastructure-as-a-Service (or IaaS) solution offered directly to customers via an intuitive self-service portal, and also delivered in conjunction with NaviSite’s broad portfolio of managed services.”

About CommVault

CommVault provides data and information management software focused on mid-range and enterprise-level environments.

In the next part of the series, we’ll discuss the fund’s exit from Juniper Networks.


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