In late June, Data Domain
Yesterday, the company announced its fiscal-second-quarter results. Over the past 12 months, revenues surged 176% to $26.5 million. The sequential increase was a juicy 31%. Data Domain also added 174 customers, for a total of 973.
There was a net loss of $1.2 million, or $0.11 per share, in the first quarter, but that included a $2.1 million charge for stock compensation. For the first half of the year, the business has generated nearly $6.9 million in operating cash flow.
Data Domain must fend off rivals such as EMC
Data Domain appears to be benefiting from a secular change in its market, as customers move away from tape technologies. On the conference call, CEO Frank Slootman said he could "feel the vibrations of growth." But any new market has volatility, and on the earnings news, Data Domain's stock price actually fell 7.6% to $22.93. This is fairly normal, especially for a company that's fresh from its IPO.
Yet for investors who like hypergrowth companies, this might be a good entry point to pick up some shares.