Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of CommVault Systems (NASDAQ:CVLT) were up by as much as 13% at the start of trading this morning after the company reported earnings that beat expectations. However, the stock has been sliding lower all morning, and has now returned to the same level it reached at the close of trading yesterday.

So what: CommVault reported revenue of $138.3 million, a 21% year-over-year improvement and ahead of the $134.0 million consensus. The company also handily beat EPS expectations, its $0.41 result coming in $0.07 above Wall Street's projection. Full-year results (the March quarter ends CommVault's fiscal year) also bested Wall Street, with $495.9 million on the top line against a $490.6 million consensus, and $1.49 in EPS against an expectation of $1.41 per share.

Now what: CommVault's earnings call occurred just prior to the market's open, and a few negative tidbits were offered that could well be responsible for the stock's retreat. Dell, which made up 19% of CommVault's total fourth-quarter revenues, is moving toward its own proprietary solutions to enterprise storage, which is likely to lead to less Dell-sourced revenue in the future. Margins are also expected to be lower during the 2014 fiscal year as CommVault expands its support structure around Simpana 10.

CommVault CFO Brian Carolan has basically confirmed that the company is "comfortable with the current Street consensus," but expects operating margins to be muted. This temporary weakness is likely the major reason why CommVault's shares couldn't hold their gains today, but it's also worth considering that the stock might be a bit overvalued, with a forward P/E over 50.

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