Data Domain Reports Q2 Results

SANTA CLARA, Calif. -- Data Domain, Inc. (NasdaqGM:DDUP - News) today announced results for its second quarter ended June 30, 2007. Net revenue for the second quarter of 2007 was $26.5 million, an increase of 31% from the first quarter of 2007 and an increase of 176% from the second quarter of 2006.

The net loss for the second quarter of 2007 was $1.2 million, or $0.11 per share. This compares to a net loss of $1.5 million in the immediately preceding first quarter of 2007, and net income of $49,000 in the second quarter of 2006. Data Domain's second quarter of 2007 results included $2.1 million of non-cash stock-based compensation expenses related to employee stock options.

"Data Domain's strong revenue growth in the second quarter reinforces the continuing demand for our industry-leading technology and the rapid expansion of our market," commented Frank Slootman, president and chief executive officer of Data Domain. "During the past quarter, Data Domain added approximately 175 new customers, bringing its cumulative customer count to approximately 1,000 worldwide since it first began shipping its Enterprise Protection Storage systems in 2004."

"In addition to exceeding our revenue plan for the quarter, we maintained gross margin of 72%, and generated positive cash flow from operations again this quarter, while increasing our number of employees by 58," added Michael Scarpelli, chief financial officer of Data Domain.

Data Domain Inc.