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Data Domain Debuts With Q2 Loss

In its first earnings call as a public company Tuesday evening, Data Domain reported sequential growth of 31 percent for the second quarter 2007. (See Data Domain Reports Q2 Results.)

The de-duplication company that entered the public arena with a $109 million IPO in early July is still a ways off from profitability, reporting a net loss of $1.2 million, or 11 cents per share. Still, that's an improvement on an overall net loss of $1.5 million, or 15 cents per share, last quarter. The firm posted net income of $49,000 in the second quarter of 2006.

Net revenue for the second quarter of 2007 was $26.5 million, up from $9.6 million for last year's second quarter. In SEC filings, the company reported revenues of just over $20 million for the first three months of 2007, up from about $8 million in the same period last year. (See Data Domain Closes IPO, Data Domain Dives In, and Data Domain Goes Public.)

On a call with financial analysts, company executives pointed to increasing operating expenses, product investment, and rapid growth in its sales force to explain the losses.

Product revenue was $23.6 million, compared with $7.1 million in the first quarter of 2006.

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