Compellent Reports Record Quarterly Revenue

EDEN PRAIRIE, MN -- (Marketwire) -- 07/28/10 -- Compellent Technologies, Inc. (NYSE: CML) today announced record revenue of 36.5 million for the second quarter ended June 30, 2010. This represents a 27 percent increase from the same quarter in 2009.

Highlights for Q2 2010 include:

--  Revenue of 36.5 million represents a 15 percent sequential increase
    over the first quarter of 2010.
--  GAAP net loss was 172,000, or 0.01 loss per share. Non-GAAP net
    income, which excludes stock-based compensation expense, was 1.5
    million, or 0.04 income per share.
--  Total installed base grew to 2,124 end-user customers, an increase of
    182 new end-users from the previous quarter.
--  Deferred revenue was 46.5 million, an increase of 8.3 million from
    December 31, 2009.
--  Cash and investments totaled 132.0 million, compared to 123.8 million
    at December 31, 2009.

"Im very pleased with this growth quarter and our positive trajectory. These results reflect our technology leadership, business model advantages, world-class support and strong execution," said Phil Soran, president and CEO of Compellent. "In the last three months, 182 organizations chose Compellent over larger competitors systems because they recognized the value of an efficient storage platform with the future built in. Our vision of storage as the intelligent, easily-managed core of a virtualized data center continues to gain traction as enterprises adopt our Fluid Data architecture."

Additional Q2 highlights include:

--  Gross margin was 53.6 percent in the second quarter of 2010 compared
    with 53.7 percent in the second quarter of 2009.
--  Revenue totaled 68.3 million for the six months ended June 30, 2010,
    which is an 11.5 million, or 20 percent increase, compared to 56.8
    million in the same period last year.
--  GAAP net loss was 1.0 million, or 0.03 loss per share for the six
    months ended June 30, 2010. Non-GAAP net income, which excludes
    stock-based compensation, was 2.0 million, or 0.06 income per share.
--  Product revenue from new end-users totaled 44 percent on a year-to-date
    basis compared with 56 percent from existing end-users.

"Whether integrating file and block storage or implementing services from corporate IT or cloud providers, enterprises need solutions that manage storage more efficiently," continued Mr. Soran. "Our proven tiered storage technology and automated, granular management of data, which we call Fluid Data, will continue to be catalysts for Compellents growth worldwide."

Conference Call

The company has scheduled a conference call to discuss its second quarter results and current business developments today, July 28, at 4:30 p.m. ET. To access the call, dial 877-941-1467 domestically or 480-629-9677 internationally. The call will also be webcast live at http://www.compellent.com/investors. An audio replay will be available for seven days following the call at 800-406-7325 for U.S. callers or 303-590-3030 for those calling outside the U.S. The password required to access the replay is 4328738. An archived webcast will also be available at http://www.compellent.com/investors until the companys conference call to discuss its third quarter 2010 financial results.

Non-GAAP Measures

To supplement the companys condensed consolidated statements of operations presented in accordance with GAAP, the company uses non-GAAP measures for operating income (loss) and net income (loss). In order for investors to be better able to compare the companys current results with those of previous periods, the company has shown a reconciliation of the GAAP to non-GAAP financial measures at the end of this press release. This reconciliation adjusts the related GAAP financial measures to exclude stock-based compensation expense. The company believes the presentation of these non-GAAP financial measures enhance the users overall understanding of the companys historical financial performance. The presentation of non-GAAP measures is not meant to be considered in isolation or as a substitute for the companys financial results prepared in accordance with GAAP, and the companys non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

About Compellent

Compellent Technologies (NYSE: CML) provides Fluid Data storage solutions that automate the movement and management of data at a granular level, enabling organizations to constantly adapt to change, slash costs and secure information against downtime and disaster. This patented, built-in storage intelligence delivers significant efficiency, scalability and flexibility. With an all-channel sales network in 35 countries, Compellent is one of the fastest growing enterprise storage companies in the world. For more information and news, visit www.compellent.com and www.compellent.com/news.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specifically, statements concerning the demand for the companys storage solution from midsized and larger enterprises, the growing base of end users, the anticipated expansion of the companys addressable market, the companys growth prospects, the advantages of the companys business model and adequacy of the companys financial resources are forward-looking statements within the meaning of the safe harbor. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, time frames or achievements to be materially different from those expressed or implied by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties, including unfavorable economic and market conditions, lessening demand in the information technology market, slower than expected growth of the small-to-medium-to-large sized enterprise storage market or adoption of the companys storage solution; the impact of technological developments and competition; the companys reliance on third-parties to sell their storage solution; pricing and availability of suppliers products; general industry trends; the companys capital and operating requirements to grow its business and changes in industry standards and interfaces, which may cause actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect Compellents business and its financial results are detailed in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2009. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made, and, except as required by law. Compellent disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

                    COMPELLENT TECHNOLOGIES, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            (unaudited, in thousands, except per share amounts)


                                   For the Three Months  For the Six Months
                                      Ended June 30,      Ended June 30,
                                    ------------------  ------------------
                                      2010      2009      2010      2009
                                    --------  --------  --------  ---------

Revenues
  Product                            24,842   20,288   45,457    41,577
  Support and services                11,652     8,428    22,864     15,212
                                    --------  --------  --------  ---------
     Total revenues                   36,494    28,716    68,321     56,789

Cost of revenues
  Product                             13,036    10,306    23,617     21,132
  Support and services                 3,886     2,983     7,677      5,407
                                    --------  --------  --------  ---------
     Total cost of revenues           16,922    13,289    31,294     26,539
                                    --------  --------  --------  ---------
  Gross profit                        19,572    15,427    37,027     30,250
Operating expenses
  Sales and marketing                 13,216    10,846    25,366     20,666
  Research and development             4,542     3,074     8,837      5,884
  General and administrative           2,139     1,550     4,222      2,950
                                    --------  --------  --------  ---------
     Total operating expenses         19,897    15,470    38,425     29,500
                                    --------  --------  --------  ---------
Operating income (loss)                 (325)      (43)   (1,398)       750
Other income, net                        311       419       716        915
                                    --------  --------  --------  ---------
Income (loss) before income taxes        (14)      376      (682)     1,665
Income tax expense                       158       129       270        405
                                    --------  --------  --------  ---------
Net income (loss)                      (172)     247     (952)    1,260
                                    ========  ========  ========  =========

Net income (loss) per weighted
 average share, basic                 (0.01)    0.01    (0.03)     0.04
Net income (loss) per weighted
 average share, diluted               (0.01)    0.01    (0.03)     0.04

Weighted average shares, basic        31,773    30,729    31,728     30,688
Weighted average shares, diluted      31,773    32,840    31,728     32,634





                      COMPELLENT TECHNOLOGIES, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)


                                                    June 30,   December 31,
                                                      2010         2009
                                                  ------------ ------------
                                                  (unaudited)

Assets
Current assets
   Cash and cash equivalents                           28,014      29,155
   Short-term investments                               29,628       35,218
   Accounts receivable, net                             34,112       36,702
   Inventories, net                                      8,301        4,750
   Other current assets                                  4,008        3,497
                                                  ------------ ------------
     Total current assets                              104,063      109,322

Long-term investments                                   74,363       59,472
Property and equipment, net                              8,184        5,153
                                                  ------------ ------------
     Total assets                                     186,610     173,947
                                                  ============ ============

Liabilities and stockholders equity
Current liabilities
   Accounts payable                                     8,819       8,968
   Accrued compensation                                  6,232        5,489
   Accrued liabilities                                   1,583        1,261
   Deferred revenues, current                           30,294       25,668
                                                  ------------ ------------
     Total current liabilities                          46,928       41,386
Deferred revenues, non-current                          16,234       12,529
Stockholders equity                                   123,448      120,032
                                                  ------------ ------------

     Total liabilities and stockholders equity       186,610     173,947
                                                  ============ ============






                      COMPELLENT TECHNOLOGIES, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                        (unaudited, in thousands)


                                                        For the Six Months
                                                          Ended June 30,
                                                        ------------------
                                                          2010      2009
                                                        --------  --------

Operating activities
   Net income (loss)                                       (952)   1,260
   Adjustments to reconcile net income (loss) to net
    cash provided by operating activities:
       Depreciation and amortization                       1,567     1,076
       Stock-based compensation expense                    2,962     2,075
       Changes in operating assets and liabilities         7,785     1,071
                                                        --------  --------
     Net cash provided by operating activities            11,362     5,482
Investing activities
   Purchases of property and equipment                    (4,598)   (1,857)
   Purchases of investments                              (57,851)  (54,119)
   Proceeds from sales and maturities of investments      48,847    31,014
                                                        --------  --------
Net cash used in investing activities                    (13,602)  (24,962)

Net cash provided by financing activities                  1,099       633

                                                        --------  --------
Net decrease in cash and cash equivalents                 (1,141)  (18,847)

Cash and cash equivalents, beginning of period            29,155    51,989
                                                        --------  --------

Cash and cash equivalents, end of period                 28,014   33,142
                                                        ========  ========





                      COMPELLENT TECHNOLOGIES, INC.
           RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURE
            (unaudited, in thousands, except per share amounts)


                                    Three Months Ended   Six Months Ended
                                         June 30,            June 30,
                                    ------------------  ------------------
                                      2010      2009      2010      2009
                                    --------  --------  --------  ---------

Operating income (loss):
   GAAP operating income (loss)        (325)     (43)  (1,398)      750

   Stock-based compensation
    expense:
     Cost of product                      18        12        33         26
     Cost of support and services         49        75        89        138
     Sales and marketing                 757       544     1,372        893
     Research and development            333       267       603        413
     General and administrative          481       389       865        605
                                    --------  --------  --------  ---------
   Total stock-based compensation
    expense                            1,638     1,287     2,962      2,075
                                    --------  --------  --------  ---------
   Non-GAAP operating income           1,313     1,244     1,564      2,825
                                    ========  ========  ========  =========

Net income (loss):
   GAAP net income (loss)               (172)      247      (952)     1,260
   Add back: stock-based
    compensation expense               1,638     1,287     2,962      2,075
                                    --------  --------  --------  ---------
   Non-GAAP net income                1,466    1,534    2,010     3,335
                                    ========  ========  ========  =========
Non-GAAP net income per weighted
 average share, diluted, adjusted
 for stock-based compensation
 expense                               0.04     0.05     0.06      0.10

Weighted average shares, diluted      32,607    32,840    32,792     32,634