October 26, 2010 / 8:35 PM / 9 years ago

UPDATE 2-Compellent Q3 beats Street, sees strong Q4

* Q3 adj EPS $0.15 vs est $0.04

* Revenue up 31 pct to $42.1 mln vs est $38 mln

* Sees Q4 adj EPS $0.09-$0.11 vs est $0.07

* Shares up 7 pct after mkt (Recasts; adds conference call details, background)

Oct 26 (Reuters) - Data storage provider Compellent Technologies Inc CML.N forecast better-than-expected fourth-quarter results and said it was gearing up for new product releases over the next few quarters.

For the fourth quarter, the company expects adjusted earnings of 9-11 cents a share and revenue of $44-$46 million.

Analysts on average were expecting earnings of 7 cents a share on revenue of $42.2 million, according to Thomson Reuters I/B/E/S.

Earlier Tuesday, Reuters reported that the Eden Prairie, Minnesota-based company was looking at a possible sale of itself and held preliminary meetings with some investment banks to help with the process. [ID:nN26243581]

On Oct. 18, the New York Post reported that EMC Corp EMC.N, the world’s biggest maker of corporate data storage equipment, was in exclusive talks to buy rival Isilon Systems Inc ISLN.O.

The data storage space has seen stocks surging and much investor interest, especially after Hewlett-Packard Co (HPQ.N) bought 3PAR, which specializes in high-end storage, in September. [ID:nN02250873]

Compellent’s stock has gained almost a third of its value over the past two months.

For July-September, Compellent posted a profit that handily beat market expectations as it sold more of its Fluid Data storage product to enterprise customers.

Third-quarter net income surged 47 percent to $3.3 million, or 10 cents a share. Excluding items, the company posted earnings of 15 cents a share, beating analysts’ estimates of 4 cents a share, according to Thomson Reuters I/B/E/S.

Shares of the company were up 7 percent at $21.00 in extended trade. They had closed up 11 percent at $19.70 Tuesday on the New York Stock Exchange. (Reporting by Sayantani Ghosh in Bangalore; Editing by Maju Samuel, Anne Pallivathuckal)

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