Commvault Systems (CVLT) 8-K CommVault Systems, Inc. Announces Third Quarter Fiscal 2007 Results

Exhibit 99.1

Press Contact:	Investor Relations:
Jeremy Skule	Michael Picariello
Fleishman Hillard	CommVault
212.453.2245	732.728.5380
jeremy.skule@fleishman.com	ir@commvault.com

CommVault Systems, Inc. Announces Third Quarter Fiscal 2007 Results

• Revenues Rise 32% to $38.3 million

• Non-GAAP Operating Income Increases 51% to $5.7 million

• Non-GAAP Net Income of $0.10 per Diluted Share

OCEANPORT, N.J. – January 30, 2007– CommVault Systems, Inc. [NASDAQ: CVLT], a leading provider of data management software applications, today announced its financial results for the third quarter ended December 31, 2006.

N. Robert Hammer, CommVault’s Chairman, President and CEO stated, “We had a good third quarter with solid progress in all areas of our business, which were highlighted by record revenues and increased earnings. We are confident in our ability to achieve our growth rate and profitability objectives. We are optimistic in our ability to continue to expand our available markets with innovative new products.”

Total revenues in the third quarter of fiscal 2007 were a record $38.3 million, an increase of 32% as compared to total revenues of $29.1 million in the third quarter of fiscal 2006. Software revenue in the third quarter of fiscal 2007 was $21.1 million, an increase of 27% from the third quarter of fiscal 2006.

Income from operations, determined in accordance with United States generally accepted accounting principles (GAAP), was $4.2 million for the third quarter of fiscal 2007, a 27% increase from $3.4 million in the same period of the prior year. For the third

quarter of fiscal 2007, CommVault reported GAAP net income of $4.6 million, a 30% increase from $3.6 million in the same period of the prior year.

On a non-GAAP basis, operating income increased 51% to $5.7 million in the third quarter of fiscal 2007 compared to $3.8 million in the third quarter of the prior year. Non- GAAP net income increased 49% to $4.6 million, or $0.10 per diluted share from $3.1 million or $0.08 per diluted share.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Use of Non-GAAP Financial Measures.”

Cash and cash equivalents as of December 31, 2006 totaled $56.5 million and operating cash flow for the quarter was $8.7 million.

Fiscal 2007 Guidance

For the fiscal year ending March 31, 2007 CommVault currently expects:

• Total revenues in the range of $150 million to $151 million.

• Non-GAAP gross margins of 85.5% to 85.7%.

• Non-GAAP operating income margins of 14.2% to 14.8%.

• Non-GAAP diluted EPS in the range of $0.44 per share to $0.46 per share using an effective tax rate of approximately 20% and a weighted average diluted share count of approximately 42.0 million to 42.5 million.

• A cash income tax rate of less than 4% for fiscal 2007.

The non-GAAP guidance excludes approximately $0.11 per share of noncash stock-based compensation charges, net of non-GAAP income tax expense of $0.03 per share. In addition, the non-GAAP guidance also excludes the potential for additional FICA expense that will be incurred by CommVault when employees exercise in the money stock options post-IPO lock-up.

Fiscal 2008 Guidance

For the fiscal year ending March 31, 2008 CommVault currently expects:

• Total revenues in the range of $191 million to $193 million.

• Non-GAAP gross margins of 85.5% to 85.7%.

• Non-GAAP operating income margins of 17.0% to 17.5%.

• Non-GAAP diluted EPS in the range of $0.54 per share to $0.56 per share using an effective tax rate of approximately 28% and a weighted average diluted share count of approximately 47 million to 48 million.

• A cash income tax rate of less than 4% for fiscal 2008.

The Non-GAAP guidance excludes approximately $0.14 per share to $0.16 per share of noncash stock-based compensation charges, net of non-GAAP income tax expense of approximately $0.06 per share.

Use of Non-GAAP Financial Measures

CommVault has provided in this press release selected financial information that has not been prepared in accordance with GAAP. CommVault uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, when used as a supplement to GAAP measures, in evaluating CommVault’s ongoing operational performance. CommVault believes that the use of these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in CommVault’s industry, many of which present similar non-GAAP financial measures to the investment community.

The non-GAAP financial results discussed above excludes noncash stock-based compensation charges, accretion of preferred stock dividends and accretion of fair value of cumulative redeemable convertible preferred stock upon its conversion to common stock. In addition, the non-GAAP financial results apply an effective tax rate of 25% starting in the second quarter of fiscal 2007 which will result in an estimated effective tax rate of approximately 20% for fiscal 2007.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. As previously mentioned, a reconciliation of GAAP to non-GAAP results is provided in the financial statement tables included in this press release.

Conference Call Information

CommVault will host a conference call today, January 30, 2007, at 5:00 p.m. EDT to discuss its financial results. To access this call, dial 877-704-5382 (domestic) or 913-312-1296 (international). Additionally, a live web cast of the conference call will be hosted under “Webcasts and Presentations” located under the “Investor Relations” section on CommVault’s Web sitewww.commvault.com.

An archived web cast of this conference call will also be available on the “Investor Relations” section of CommVault’s Web site,www.commvault.com.

About CommVault

CommVault^® provides Unified Data Management™ solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. The CommVault^® QiNetix™ platform, based on CommVault’s Common Technology Engine, integrates Galaxy backup and recovery, snapshot management and recovery, remote replication, active data migration and archiving,e-mail compliance, enterprise service level management and reporting and storage resource management software solutions. The QiNetix unified approach is designed to allow customers to add/integrate QiNetix components, at a fraction of the time, effort and money required by separate point products.

Information about CommVault is available at www.commvault.com or by calling 732.870.4000. CommVault’s corporate headquarters is located in Oceanport, New Jersey in the United States. (cvlt-f)

Safe Harbor Statement

This press release contains forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions and others. Statements regarding CommVault’s beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation

Reform Act of 1995. Actual results may differ materially from anticipated results. CommVault does not undertake to update its forward-looking statements.

CommVault Systems, Inc. CommVault Systems, CommVault Galaxy, CommVault QiNetix, DataMigrator, DataArchiver, QNet, CommServe StorageManager, Common Technology Engine, MediaAgent, iDataAgent, CommCell and the CommVault logo are trademarks and may be registered trademarks in some jurisdictions of CommVault Systems, Inc. Product and company names herein may be trademarks of their respective owners.

Table I

CommVault Systems, Inc.

Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2006			2005			2006			2005
Revenues:
Software	$	21,132		$	16,655		$	60,180		$	43,978
Services		17,198			12,395			48,310			33,117
Total revenues		38,330			29,050			108,490			77,095
Cost of revenues:
Software		528			676			1,191			1,316
Services		5,102			3,565			14,459			9,292
Total cost of revenues		5,630			4,241			15,650			10,608
Gross margin		32,700			24,809			92,840			66,487
Operating expenses:
Sales and marketing		17,379			13,009			48,958			37,533
Research and development		5,851			4,962			17,369			14,019
General and administrative		4,470			3,099			13,734			9,132
Depreciation and amortization		753			388			1,832			1,153
Income from operations		4,247			3,351			10,947			4,650
Interest expense		(167	)		(1	)		(184	)		(7	)
Interest income		665			381			1,865			812
Income before income taxes		4,745			3,731			12,628			5,455
Income tax expense		(111	)		(160	)		(222	)		(235	)
Net income		4,634			3,571			12,406			5,220
Less: accretion of preferred stock dividends		—			(1,427	)		(2,818	)		(4,265	)
Less: accretion of fair value of preferred stock upon conversion		—			—			(102,745	)		—
Net income (loss) attributable to common stockholders	$	4,634		$	2,144		$	(93,157	)	$	955
Net income (loss) attributable to common stockholders per share:
Basic	$	0.11		$	0.08		$	(3.44	)	$	0.03
Diluted	$	0.10		$	0.07		$	(3.44	)	$	0.03
Weighted average shares used in computing per share amounts:
Basic		41,676			18,822			27,052			18,814
Diluted		46,164			31,484			27,052			30,518

Table II

CommVault Systems, Inc.

Condensed Consolidated Balance Sheets
(In thousands)

	December 31,		March 31,
	2006		2006
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	56,494	$	48,039
Trade accounts receivable		21,737		18,238
Prepaid expenses and other current assets		2,200		1,877
Total current assets		80,431		68,154
Property and equipment, net		4,425		3,322
Other assets		397		1,092
Total assets	$	85,253	$	72,568
Liabilities, cumulative redeemable convertible preferred stock and stockholders’ equity (deficit)
Current liabilities:
Accounts payable	$	1,106	$	1,565
Accrued liabilities		15,920		12,685
Term loan		8,750		—
Deferred revenue		33,063		29,765
Total current liabilities		58,839		44,015
Deferred revenue, less current portion		4,333		3,036
Other liabilities		6		13
Cumulative redeemable convertible preferred stock: Series A through E		—		99,168
Total stockholders’ equity (deficit)		22,075		(73,664	)
	$	85,253	$	72,568

Table III

CommVault Systems, Inc.

Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Nine Months Ended
	December 31,
	2006			2005
Cash flows from operating activities
Net income	$	12,406		$	5,220
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,045			1,188
Noncash stock compensation		4,326			624
Changes in operating assets and liabilities:
Accounts receivable		(3,499	)		1,245
Prepaid expenses and other current assets		(323	)		582
Other assets		(160	)		(30	)
Accounts payable		(316	)		(199	)
Accrued expenses		3,442			1,520
Deferred revenue and other liabilities		4,588			9,958
Net cash provided by operating activities		22,509			20,108
Cash flows from investing activities
Purchase of property and equipment		(3,148	)		(1,765	)
Net cash used in investing activities		(3,148	)		(1,765	)
Cash flows from financing activities
Payments to Series A through E preferred stockholders upon conversion to common stock		(101,833	)		—
Net proceeds from initial public offering and concurrent private placement		82,242			—
Proceeds from the exercise of stock options		343			82
Proceeds from term loan		15,000			—
Repayments on term loan		(6,250	)		(149	)
Net cash used in financing activities		(10,498	)		(67	)
Effects of exchange rate — changes in cash		(408	)		185
Net increase in cash and cash equivalents		8,455			18,461
Cash and cash equivalents at beginning of period		48,039			24,795
Cash and cash equivalents at end of period	$	56,494		$	43,256

Table IV

CommVault Systems, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2006			2005			2006			2005
Non-GAAP financial measures and reconcilation:
GAAP income from operations	$	4,247		$	3,351		$	10,947		$	4,650
Add: Noncash stock compensation (1)		1,445			414			4,326			624
Non-GAAP income from operations	$	5,692		$	3,765		$	15,273		$	5,274
GAAP net income (loss) attributable to common stockholders	$	4,634		$	2,144		$	(93,157	)	$	955
Add: Noncash stock compensation (1)		1,445			414			4,326			624
Add: Accretion of preferred stock dividends (2)		—			1,427			2,818			4,265
Add: Accretion of fair value of preferred stock upon conversion (3)		—			—			102,745			—
Less: Non-GAAP provision for income taxes adjustment (4)		(1,437	)		(876	)		(2,866	)		(1,285	)
Non-GAAP net income attributable to common stockholders	$	4,642		$	3,109		$	13,866		$	4,559
GAAP diluted weighted average shares outstanding		46,164			31,484			27,052			30,518
Add: Conversion of Series A through E preferred stock		—			6,333			4,122			6,333
Add: Conversion of Series AA, BB and CC preferred stock		—			—			6,305			—
Add: Dilutive effect of stock options and warrants		—			—			3,713			—
Non-GAAP diluted weighted average shares outstanding		46,164			37,817			41,192			36,851
Non-GAAP diluted net income per share	$	0.10		$	0.08		$	0.34		$	0.12

Footnotes — Adjustments

(1) Represents noncash stock compensation charges associated with stock options granted as follows:

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2006		2005		2006		2005
Cost of services revenue	$	24	$	8	$	75	$	14
Sales and marketing		701		155		1,978		263
Research and development		182		45		564		77
General and administrative		538		206		1,709		270
Total noncash stock compensation expense	$	1,445	$	414	$	4,326	$	624

(2)	Represents accretion of preferred stock dividends due on CommVault’s Series A through E cumulative redeemable convertible preferred stock prior to its conversion to common stock on September 27, 2006.
(3)	Represents accretion of fair value of Series A through E cumulative redeemable convertible preferred stock upon conversion to common stock on September 27, 2006.
(4)	The provision for income taxes is adjusted to reflect CommVault’s estimated non-GAAP effective tax rate of approximately 25% starting in the second quarter of fiscal 2007.