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“With the DD460 from Data Domain, we’ve been able to compress and store two to three months of backup data onsite. We’ve cut costs and reduced our reliance on offsite tape storage, and we can back up and restore data at incredible speeds. Best of all, we can easily verify the security and integrity of our data. We’re very pleased — the DD460 is everything we’d hoped for.” — Ephraim Baron
IT Director
EFI

Press Release

Data Domain, Inc. Reports Second Quarter Financial Results

Revenue Increases 16% Compared to the First Quarter 2008, 131% Compared to Second Quarter 2007

www.datadomain.com

SANTA CLARA, Calif. — July 24, 2008 —Data Domain, Inc. (Nasdaq: DDUP) today announced results for its second quarter ended June 30, 2008. Net revenue for the second quarter of 2008 was $61.2 million, an increase of 16% from the first quarter of 2008 and an increase of 131% from the second quarter of 2007.

Under U.S. generally accepted accounting principles (“GAAP”), Data Domain posted a net income of $1.7 million for the second quarter of 2008, or $0.03 per diluted share. This compares to GAAP net income of $2.7 million, or $0.04 per diluted share in the immediately preceding first quarter of 2008, and a GAAP net loss of $1.2 million, or $0.12 per diluted share in the second quarter of 2007.

Excluding the impact of stock-based compensation and related taxes in all periods, the non-GAAP net income for the second quarter of 2008 was $6.5 million, or $0.10 per diluted share, compared to non-GAAP net income of $7.7 million, or $0.11 per diluted share in the immediately preceding first quarter of 2008, and non-GAAP net income of $0.9 million, or $0.09 per diluted share in the second quarter of 2007.

"Our results for the second quarter of 2008 included record revenues, strong gross margins and significant growth in our customer base, which has more than doubled in the past year," said Frank Slootman, president and chief executive officer of Data Domain. “Approximately 340 new customers were added during this past quarter, bringing Data Domain’s cumulative customer count to over 2,100 worldwide.

Demand was strong for our new high end product, the DD690, which is the industry’s highest performance inline deduplication storage system for backup and other nearline applications. The DD690, in combination with our DD120 remote office appliance and our advanced replication capabilities, positions Data Domain to address the full range of needs for large distributed enterprises.”

“Data Domain has again executed to plan, exceeding its revenue targets for the quarter, while continuing to invest in its infrastructure for growth,” added Michael Scarpelli, chief financial officer for Data Domain. “GAAP net income was $1.7 million and gross margins were strong at 72%. In addition, we achieved operating profit while hiring an additional 87 employees, bringing total headcount to 614, and we continued to be cash flow positive.”

Second Quarter Highlights

In June 2008, Data Domain announced its Data Domain Retention Lock software option, the industry’s first software to allow file locking for IT regulatory governance with high throughput inline deduplication.
Also in June 2008, the Company announced enhancements to its enterprise VTL software offering that simplify the provisioning and management of its VTL interface and incorporate support for multiple 4 GB/s Fibre Channel interfaces. In addition, Data Domain announced that its VTL software has now been certified for use with a wide range of additional protection software offerings from industry leading vendors such as Oracle, IBM, HP and CommVault.
In May 2008, Data Domain announced the DD690, the industry’s highest performance inline deduplication storage system, further validating the long term scalability of its SISLTM (Stream-Informed Segment Layout) scaling architecture and enhancing the Company’s ability to address the needs of increasingly larger enterprises and data centers.
In May 2008, TheInfoPro’s Wave 10 European Storage Study cited Data Domain as the “top deduplication vendor in-plan” among IT storage users at European large enterprises.
During the second quarter of 2008, Data Domain’s customer count passed the 2,000 mark. After passing the 1,000 customer milestone as of June 2007, in the past year the Company has doubled the number of customers that have purchased the Company’s products since 2004.

Conference Call Information
Data Domain will host a conference call for analysts and investors to discuss its second quarter results today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). The dial-in number for this conference call is 866.825.1709 (617.213.8060 international) and the participant passcode is 42654518#. A live webcast of the conference call will be accessible from the Investor Relations section of the Company’s website at www.datadomain.com. Following the webcast, an archived version will be available on the company’s website for 30 days. To hear the replay, parties in the United States and Canada should call 1-888-286-8010 and enter passcode 35175638#. International parties can access the replay at 617-801-6888 and should enter passcode 35175638#.

Use of Non-GAAP Financial Information
Data Domain has supplemented the financial measures contained in this press release that are provided in accordance with U.S. generally accepted accounting principles (“GAAP”) with non-GAAP financial measures. Data Domain believes that these non-GAAP financial measures better reflect its core operating results and thus are appropriate to enhance the overall understanding of its past financial performance and its prospects for the future. These adjustments to Data Domain’s GAAP results are made with the intent of providing both management and investors a more complete understanding of Data Domain’s underlying operational results and trends and performance. Management uses these non-GAAP measures to evaluate Data Domain’s financial results, develop budgets and manage expenditures. The method Data Domain uses to produce non-GAAP financial results may differ from the methods used by other companies. Data Domain’s reference to these non-GAAP financial results should be considered in addition to results that are prepared under current accounting standards but should not be considered as a substitute for, or superior to, the financial results that are presented as consistent with GAAP. Reconciliation of the non-GAAP financial measures to the nearest GAAP financial measures is included in the financial measures attached hereto.

ABOUT DATA DOMAIN
Data Domain® is the leading provider of deduplication storage systems. Over 2,100 companies worldwide have purchased Data Domain systems to reduce storage costs and simplify data management. Data Domain delivers the performance, reliability and scalability to address the data protection and nearline storage needs of enterprises of all sizes. Data Domain products integrate into existing customer infrastructures and are compatible with leading enterprise backup and archive software products. To find out more about Data Domain, visit www.datadomain.com.

Data Domain is headquartered at 2421 Mission College Blvd., Santa Clara, CA 95054 and can be contacted by phone at 1-866-933-3873 or by e-mail at sales@datadomain.com.

Forward Looking Statements
This press release contains forward-looking statements regarding the long term scalability of the Company’s SISL^TM scaling architecture, its in-plan status in European large enterprises. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties include any weakening of general economic and market conditions and customer budgets for information technology spending, our ability to react to trends and challenges in our business and the markets in which we operate; our ability to anticipate market needs or develop new or enhanced products to meet those needs; market acceptance of our products; our ability to scale our distribution channels; our ability to recruit and retain personnel; our ability to compete in our industry; our ability to maintain and expand relationships with technology partners; our ability to protect our intellectual property; shortages or price fluctuations in our supply chain and the performance of our contract manufacturer; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. More information about these and other risks that may impact our business are set forth in the “Risk Factors” sections in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, and our Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

Data Domain and the Data Domain logo are trademarks or registered trademarks of Data Domain, Inc. All other trademarks used or mentioned herein belong to their respective owners.

A copy of this press release can be found on the Investor Relations page of Data Domain’s website at www.datadomain.com

###

Consolidated Balance Sheets

Consolidated Statements of Operations

GAAP to Non-GAAP Reconciliation Q2-08 vs. Q1-08

GAAP to Non-GAAP Reconciliation Q2-08 vs. Q2-07

GAAP to Non-GAAP Reconciliation 1H-08 vs. 1H-07

Consolidated Statements of Cash Flows

Contact Information

Data Domain

Michael P. Scarpelli
Chief Financial Officer
408.980.4800
ir@datadomain.com

Home > News > Press Release

Recent Press Releases Press Release Archive 2007 2006 2005 2004 2003 Media Coverage Events Newsletter Media & Analyst Center Industry Overview Awards “With the DD460 from Data Domain, we’ve been able to compress and store two to three months of backup data onsite. We’ve cut costs and reduced our reliance on offsite tape storage, and we can back up and restore data at incredible speeds. Best of all, we can easily verify the security and integrity of our data. We’re very pleased — the DD460 is everything we’d hoped for.” — Ephraim Baron IT Director EFI	Press Release Data Domain, Inc. Reports Second Quarter Financial Results Revenue Increases 16% Compared to the First Quarter 2008, 131% Compared to Second Quarter 2007 www.datadomain.com SANTA CLARA, Calif. — July 24, 2008 —Data Domain, Inc. (Nasdaq: DDUP) today announced results for its second quarter ended June 30, 2008. Net revenue for the second quarter of 2008 was $61.2 million, an increase of 16% from the first quarter of 2008 and an increase of 131% from the second quarter of 2007. Under U.S. generally accepted accounting principles (“GAAP”), Data Domain posted a net income of $1.7 million for the second quarter of 2008, or $0.03 per diluted share. This compares to GAAP net income of $2.7 million, or $0.04 per diluted share in the immediately preceding first quarter of 2008, and a GAAP net loss of $1.2 million, or $0.12 per diluted share in the second quarter of 2007. Excluding the impact of stock-based compensation and related taxes in all periods, the non-GAAP net income for the second quarter of 2008 was $6.5 million, or $0.10 per diluted share, compared to non-GAAP net income of $7.7 million, or $0.11 per diluted share in the immediately preceding first quarter of 2008, and non-GAAP net income of $0.9 million, or $0.09 per diluted share in the second quarter of 2007. "Our results for the second quarter of 2008 included record revenues, strong gross margins and significant growth in our customer base, which has more than doubled in the past year," said Frank Slootman, president and chief executive officer of Data Domain. “Approximately 340 new customers were added during this past quarter, bringing Data Domain’s cumulative customer count to over 2,100 worldwide. Demand was strong for our new high end product, the DD690, which is the industry’s highest performance inline deduplication storage system for backup and other nearline applications. The DD690, in combination with our DD120 remote office appliance and our advanced replication capabilities, positions Data Domain to address the full range of needs for large distributed enterprises.” “Data Domain has again executed to plan, exceeding its revenue targets for the quarter, while continuing to invest in its infrastructure for growth,” added Michael Scarpelli, chief financial officer for Data Domain. “GAAP net income was $1.7 million and gross margins were strong at 72%. In addition, we achieved operating profit while hiring an additional 87 employees, bringing total headcount to 614, and we continued to be cash flow positive.” Second Quarter Highlights In June 2008, Data Domain announced its Data Domain Retention Lock software option, the industry’s first software to allow file locking for IT regulatory governance with high throughput inline deduplication. Also in June 2008, the Company announced enhancements to its enterprise VTL software offering that simplify the provisioning and management of its VTL interface and incorporate support for multiple 4 GB/s Fibre Channel interfaces. In addition, Data Domain announced that its VTL software has now been certified for use with a wide range of additional protection software offerings from industry leading vendors such as Oracle, IBM, HP and CommVault. In May 2008, Data Domain announced the DD690, the industry’s highest performance inline deduplication storage system, further validating the long term scalability of its SISLTM (Stream-Informed Segment Layout) scaling architecture and enhancing the Company’s ability to address the needs of increasingly larger enterprises and data centers. In May 2008, TheInfoPro’s Wave 10 European Storage Study cited Data Domain as the “top deduplication vendor in-plan” among IT storage users at European large enterprises. During the second quarter of 2008, Data Domain’s customer count passed the 2,000 mark. After passing the 1,000 customer milestone as of June 2007, in the past year the Company has doubled the number of customers that have purchased the Company’s products since 2004. Conference Call Information Data Domain will host a conference call for analysts and investors to discuss its second quarter results today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). The dial-in number for this conference call is 866.825.1709 (617.213.8060 international) and the participant passcode is 42654518#. A live webcast of the conference call will be accessible from the Investor Relations section of the Company’s website at www.datadomain.com. Following the webcast, an archived version will be available on the company’s website for 30 days. To hear the replay, parties in the United States and Canada should call 1-888-286-8010 and enter passcode 35175638#. International parties can access the replay at 617-801-6888 and should enter passcode 35175638#. Use of Non-GAAP Financial Information Data Domain has supplemented the financial measures contained in this press release that are provided in accordance with U.S. generally accepted accounting principles (“GAAP”) with non-GAAP financial measures. Data Domain believes that these non-GAAP financial measures better reflect its core operating results and thus are appropriate to enhance the overall understanding of its past financial performance and its prospects for the future. These adjustments to Data Domain’s GAAP results are made with the intent of providing both management and investors a more complete understanding of Data Domain’s underlying operational results and trends and performance. Management uses these non-GAAP measures to evaluate Data Domain’s financial results, develop budgets and manage expenditures. The method Data Domain uses to produce non-GAAP financial results may differ from the methods used by other companies. Data Domain’s reference to these non-GAAP financial results should be considered in addition to results that are prepared under current accounting standards but should not be considered as a substitute for, or superior to, the financial results that are presented as consistent with GAAP. Reconciliation of the non-GAAP financial measures to the nearest GAAP financial measures is included in the financial measures attached hereto. ABOUT DATA DOMAIN Data Domain® is the leading provider of deduplication storage systems. Over 2,100 companies worldwide have purchased Data Domain systems to reduce storage costs and simplify data management. Data Domain delivers the performance, reliability and scalability to address the data protection and nearline storage needs of enterprises of all sizes. Data Domain products integrate into existing customer infrastructures and are compatible with leading enterprise backup and archive software products. To find out more about Data Domain, visit www.datadomain.com. Data Domain is headquartered at 2421 Mission College Blvd., Santa Clara, CA 95054 and can be contacted by phone at 1-866-933-3873 or by e-mail at sales@datadomain.com. Forward Looking Statements This press release contains forward-looking statements regarding the long term scalability of the Company’s SISL^TM scaling architecture, its in-plan status in European large enterprises. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties include any weakening of general economic and market conditions and customer budgets for information technology spending, our ability to react to trends and challenges in our business and the markets in which we operate; our ability to anticipate market needs or develop new or enhanced products to meet those needs; market acceptance of our products; our ability to scale our distribution channels; our ability to recruit and retain personnel; our ability to compete in our industry; our ability to maintain and expand relationships with technology partners; our ability to protect our intellectual property; shortages or price fluctuations in our supply chain and the performance of our contract manufacturer; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. More information about these and other risks that may impact our business are set forth in the “Risk Factors” sections in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, and our Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. Data Domain and the Data Domain logo are trademarks or registered trademarks of Data Domain, Inc. All other trademarks used or mentioned herein belong to their respective owners. A copy of this press release can be found on the Investor Relations page of Data Domain’s website at www.datadomain.com ### Consolidated Balance Sheets Consolidated Statements of Operations GAAP to Non-GAAP Reconciliation Q2-08 vs. Q1-08 GAAP to Non-GAAP Reconciliation Q2-08 vs. Q2-07 GAAP to Non-GAAP Reconciliation 1H-08 vs. 1H-07 Consolidated Statements of Cash Flows Contact Information Data Domain Michael P. Scarpelli Chief Financial Officer 408.980.4800 ir@datadomain.com

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