As firms become increasingly dependent on efficient and secure access to enterprise data, the advantages of a unified architectural approach to database management become increasingly apparent. There is an outfit in Oceanport, New Jersey, noted for the degree to which its systems employ that approach.

CommVault Systems (NASDAQ: CVLT) provides data management software and related services. Its unified suite of applications is used for enterprise-wide data migration, backup, archiving, data replication and disaster recovery. The firm serves customers in manufacturing, financial services, health care, transportation and the public sector. It has strategic partnerships with the likes of Dell (NASDAQ: DELL), Hitachi (NYSE: HIT) and Novell (NASDAQ: NOVL).

The firm pleased investors last week when it announced fiscal Q2 EPS of 12 cents and revenues of $47.4 million. Analysts had been expecting 12 cents and $45.9 million. The revenue figure was a company record. Management also guided FY08 EPS to 57-59 cents (56 cent consensus) and FY08 revenues to $194-$196 million ($192.81 million consensus). In discussing the favorable outlook, the CEO noted significant progress in expanding the company's market positions in backup and emerging products.

RBC Capital Markets reiterated its "outperform" rating and boosted its price target to $26. CVLT shares popped on the news and subsequently moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Altogether, brokers recommend the issue with three "strong buys," five "buys" and three "holds." Analysts see a 31% growth rate through the next year. The CVLT P/E ratio (14.56), Price to Cash Flow ratio (13.40), Sales Growth rate (21.51%), Net Profit Margin (36.50%), Return on Assets (50.93%), Return on Investment (100.44%) and Return on Equity (108.31%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $14.97 and $21.19. A stop-loss of $18.20 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.