Company: CVLT
Filing Date: 2025-01-29
Form Type: 10-Q
Source: 0001169561-25-000007
Chunk: 65

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-01-29
Form: 10-Q
Item: Item 8
Chunk 65
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2025. There were no restructuring expenses in the nine months ended December 31, 2023.

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Risks associated with our restructuring plan include additional unexpected costs, adverse effects on employee morale and the failure to meet operational and growth targets due to the loss of key employees, any of which may impair our ability to achieve anticipated results of operations or otherwise harm our business.

–Depreciation and amortization expense increased $2.0 million, or 44%, driven by the acquisition of intangible assets in fiscal 2025. 

–Change in contingent consideration: During the nine months ended December 31, 2024, we recorded an expense of $2.5 million related to changes in the estimated fair value of our contingent consideration arrangement. The arrangement is contingent upon meeting certain financial metrics by June 30, 2025 and can range up to $4.0 million.

–Impairment charges: During the nine months ended December 31, 2024, we recorded an impairment charge of $2.9 million related to our assets held for sale, which includes changes in the estimated fair value and estimated costs to sell.

Interest Income 

Interest income increased $1.6 million, from $3.5 million in the nine months ended December 31, 2023 to $5.1 million in the nine months ended December 31, 2024, primarily as a result of the amount of invested funds subject to interest income.

Income Tax Expense

Income tax expense was $7.3 million in the nine months ended December 31, 2024 compared to expense of $17.8 million in the nine months ended December 31, 2023. The decrease in income tax expense compared to the prior year relates primarily to the recognition of deferred tax assets that were not recognized in prior years due to the Company’s valuation allowance, as well as windfalls from stock compensation.

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Liquidity and Capital Resources

In recent fiscal years, our principal source of liquidity has been cash provided by operations. As of December 31, 2024, our cash and cash equivalents balance was $243.6 million, of which approximately $179.4 million was held outside of the United States by our foreign legal entities. These balances are dispersed across approximately 35 international locations around the world. We believe that such dispersion meets the current and anticipated future liquidity needs of our foreign legal entities. In the event we need to repatriate funds from outside of the United States, such repatriation