3PAR, a leading global provider of utility storage, has reported results for the third quarter of fiscal year 2009, which ended December 31, 2008. Revenue for the third quarter was $48.2 million, an increase of 57% compared to revenue of $30.8 million for the same period a year ago, and an increase of 7% compared to $45.1 million in the prior quarter, which ended September 30, 2008.

For the third quarter of fiscal 2009, GAAP net income was $461,000, or $0.01 per share compared to GAAP net loss of $1.9 million, or ($0.05) per share for the same period in the prior year. Non-GAAP net income, which excludes the impact of stock-based compensation expense, for the third quarter of fiscal 2009 was $2.3 million, or $0.04 per share, compared to non-GAAP net loss of $664,000, or ($0.02) per share for the same period in the prior year.

"The strong financial results we report for the third quarter of fiscal 2009 result from a continued focus on fiscal discipline and reflect the unique value that 3PAR Utility Storage brings to organizations that need to do more with less in challenging economic times," said David Scott, Chief Executive Officer. "As datacenters have continued to look for new ways to economize, they have continued to turn to 3PAR to lower CAPEX and OPEX by reducing disk capacity purchases, energy costs, and storage administration effort by up to 80%."

Additional Third Quarter Fiscal 2009 Financial Information

3PAR reports operating income (loss), net income (loss), and earnings (loss) per share (EPS) on a GAAP and on a non-GAAP basis, which excludes the impact of stock-based compensation expense. The non-GAAP measures are described in greater detail below and are reconciled to the corresponding GAAP measures in the accompanying financial tables.

--  GAAP operating income for the third quarter of fiscal 2009 was

    $507,000, or 1% of revenue. This compares to GAAP operating loss of $1.4

    million in the second quarter of fiscal 2009, or 3% of revenue. Non-GAAP

    operating income in the third quarter of fiscal 2009 was $2.4 million, or

    5% of revenue. This compares to non-GAAP operating income of $291,000, or

    1% of revenue, in the second quarter of fiscal 2009. GAAP net income for

    the third quarter of fiscal 2009 was $461,000 as compared to a GAAP net

    loss of $1.2 million in the second quarter of fiscal 2009. Non-GAAP net

    income in the third quarter of fiscal 2009 was $2.3 million, compared to

    $520,000 in the second quarter of fiscal 2009.

--  GAAP EPS for the third quarter of fiscal 2009 was $0.01 on 63.1

    million diluted shares outstanding, compared to ($0.02) in the second

    quarter of fiscal 2009 on 60.6 million shares outstanding. Non-GAAP EPS in

    the third quarter of fiscal 2009 was $0.04 compared to $0.01 in the second

    quarter of fiscal 2009.

--  Non-GAAP operating income, non-GAAP net income, and non-GAAP EPS are

    computed net of stock-based compensation. In the third and second quarters

    of fiscal 2009, the charges related to stock-based compensation were $1.9

    million and $1.7 million, respectively.

Reconciliations of Non-GAAP measures to GAAP operating loss, net loss, and EPS are included at the end of this release.

Webcast and Conference Call Information

To access the conference call by phone, please dial 800-510-9836, Passcode 12011303. International participants can dial 617-614-3670, Passcode 12011303. A live webcast of the conference call will also be accessible from the "Investors" section of 3PAR's Website at www.3PAR.com. Following the webcast, an archived version will be available on the website for seven days. To hear the replay, parties in the United States and Canada should call 888-286-8010 and enter passcode 16966120. International parties can access the replay at 617-801-6888 and enter passcode 16966120.