stocks trade sharply higher on Thursday after the flash memory-based enterprise storage product vendor posted better than expected results for the fiscal second quarter ended August 1.
For the quarter, Pure (ticker: PSTG) reported revenue of $496.8 million, up 23% from a year ago, and well above both the company’s forecast of $470 million and the Street consensus at $469.5 million. The company had non-GAAP earnings for the quarter of 14 cents a share, ahead of the consensus of 5 cents. According to generally accepted accounting principles, the company lost 16 cents a share.
Subscription revenue was $171.9 million, up 31% from a year ago. Operating cash flow improved to $123.4 million from $95.7 million a year ago. Remaining performance commitments increased 25% to $1.2 billion.
“Clearly, our long-term strategy to provide customers with modern data services is working,” Pure CEO Charles Giancarlo said in a statement. “We are in a great innovation cycle with our portfolio and our sales momentum and execution has never been stronger.”
For its fiscal third quarter, Pure sees revenue of $530 million, well above the old consensus of $495 million, with non-GAAP operating income of $40 million. For the January 2022 fiscal year, the company sees revenue of $2.04 billion, above the consensus of $1.97 billion, with $150 million in non-GAAP operating income.
In an interview with Barron’sGiancarlo said it was “an incredible quarter, one of the best ever clocked at the company.” He noted “strong contributions from all new products” and 35% of total revenue from the company’s growing subscription business. Giancarlo says the company has benefited from an expansion in enterprise IOT spending.
“Customers are becoming more and more accustomed to working in a Covid environment,” he said. While he notes that the Delta variant could slow things down a bit in the near term, he expects the impact to be temporary.
Giancarlo says the company is not significantly hampered by component shortages, although he agrees that “the supply chain is now more challenging to manage.”
On the news that
(WDC) is in talks to acquire Kioxia, a Japanese company that operates a large flash memory company in a joint venture with Western, Giancarlo says he’s not worried about a narrowing of the market. He notes that Pure is “a very close partner to Kioxia, a key supplier to us.” But he doesn’t think the situation would change if the company were taken over by
In late trade,
is up 9.6% to $22.97.
Write to Eric J. Savitz at firstname.lastname@example.org