October 27, 2010 -- Compellent's stock skyrocketed today due to stellar Q3 performance and continued rumors that the company may be acquired.
Compellent announced record revenue of $42.1 million, a 31% boost over Q3 2009 revenue. GAAP net income was $3.3 million (or 10 cents a share). Gross margin was 55.9%. And the company gained 179 new customers in the quarter, bringing its total to 2, 303.
Investors jacked up Compellent's stock price by more than 32%. The shares closed at slightly over $26 in after-hours trading -- an all-time high. And that's on top of about a 10% gain on Tuesday after Reuters reported that Compellent was actively seeking suitors and had held talks with Qatalyst Partners, among others. (Qatalyst, as you may recall, shepherded the $2.4 billion buyout of 3PAR by HP, and was also involved with Data Domain when they were acquired by EMC. Isilon also recently engaged with Qatalyst, according to various reports.)
ok, so Compellent's share price run-up was obviously based on a combination of the acquisition rumors and the company's Q3 performance.
On the acquisition front, most financial analysts and speculators (as though there was a difference) still think that Dell is the most likely acquirer of Compellent. I don't think so, if only because at the price Dell would have to pay for Compellent I don't see how they would reconcile the product line with the EqualLogic line.
However, if Compellent is not bought . . . as the company's tag line says: "The future is fluid," and that may apply more to the company's stock price than to Fluid Data.
Because of my skepticism about a Dell takeover of Compellent, I maintain my #3 ranking for Compellent in my List of the Most Likely Storage Acquisitions (see "Who will be acquired next? And the Top 10 are . . .").
Related blog post: "Isilon revenue up 77%"