With the global economy ailing, companies are scrambling to cut costs. But some companies continue to post hefty growth rates.

Just look at Data Domain (NASDAQ: DDUP), which develops next-generation storage systems. For Q3, the company saw its revenues spike 134% to $75 million (it was a 23% sequential growth rate). Net income was $3.2 million or $0.05 per share. Operating cash flow came to $22 million.

Then again, Data Domain continues to rack up customers, with 355 new accounts in Q3. In all, the company has more than 2,500 customers.

Data Domain is getting lots of traction for its new product, called the DD690 (which is going beyond stuff like back-ups to more advance storage activities). The result has been that average selling prices have gone from $108,000 to $131,000.

Over the past few years, I've had a chance to talk to Data Domain's CEO, Frank Slootman. He has always mentioned that the storage industry is in the midst of a major change, and that his company was leading the way. Often, such statements are bluster. But so far, Data Domain's results show that the company is certainly riding a major growth wave.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Data Domain: Supergrowth in any environment originally appeared on BloggingStocks on Sun, 26 Oct 2008 14:10:00 EST. Please see our terms for use of feeds.