Sunnyvale, Calif.-August 18,
2010- NetApp (NASDAQ: NTAP) today reported results for the
first quarter of fiscal year 2011, which ended July 30, 2010.
Revenues for the first fiscal quarter of 2011 totaled US$1.14
billion compared to revenues of $838 million for the same period a
year ago.
For the first fiscal quarter of fiscal year
2011, GAAP net income was $142 million or $0.38 per
share1 compared to GAAP net income of $52 million, or
$0.15 per share for the same period in the prior year. Non-GAAP net
income for the first fiscal quarter of fiscal year 2011 was $183
million, or $0.49 per share2, compared to non-GAAP net
income of $76 million, or $0.22 per share for the same period a
year ago.
"With total revenue growth for the quarter of
36% and product revenue growth of 51% year over year, NetApp has
begun our fiscal year with great momentum," said Tom Georgens,
president and CEO. "The NetApp value proposition allows customers
to implement more flexible and efficient storage infrastructures at
a lower cost. Our results indicate we are achieving clear customer
preference as IT organizations transform their data centers."
Outlook
- NetApp estimates revenue for the second quarter of fiscal year
2011 to be in the range of $1.16 billion to $1.21 billion.
- NetApp estimates share count for the second quarter of fiscal
year 2011 to increase by about 6 million shares.
- NetApp estimates that the second quarter of fiscal year 2011
GAAP earnings per share will be approximately $0.35 to $0.38 per
share. NetApp estimates that the second quarter fiscal year 2011
non-GAAP earnings per share will be approximately $0.47 to $0.50
per share.
Business Highlights
In the first quarter of fiscal year 2011, NetApp expanded its
strategic relationships with Microsoft and other partners to help
customers and service providers make the transition to a cloud
computing environment. NetApp, VMware, and Cisco also strengthened
their trilateral collaboration by unveiling new solutions to
increase data center efficiencies for customers. In addition,
NetApp achieved several milestones and earned several awards during
the quarter related to customer adoption of key technologies and
its unique corporate culture. Key business highlights included the
following:
NetApp Strengthens Relationship with
Microsoft
- NetApp and Microsoft streamline data center management and
accelerate cloud computing. NetApp announced closer integration
with Microsoft® technology to help joint customers and service
providers more easily manage their virtualized environments and
build internal and public clouds. This tighter integration will
allow customers to make their data centers more efficient, agile,
and dynamic.
- NetApp integrates with Microsoft toolkit to help service
providers take small and medium-sized businesses (SMBs) to the
cloud. While enterprise-class data protection has historically
been too expensive for most SMBs, NetApp's integration with the
Microsoft Dynamic Data Center Toolkit for Hosters enables service
providers to make data protection a reality for their SMB
customers.
- NetApp unveils solutions for Microsoft SharePoint®
Server 2010 environments. NetApp® SnapManager® 6.0
for Microsoft SharePoint 2010 and other new storage solutions
enable customers to make a smooth transition to SharePoint 2010. As
storage demands continue to increase for SharePoint 2010,
SnapManager 6.0 will help customers improve scalability, optimize
storage resources, and reduce costs.
NetApp and Partners Enable Flexible IT
- NetApp, Cisco, and VMware unveil end-to-end Fibre Channel
over Ethernet (FCoE) solution for the dynamic data center.
These three partners delivered the industry's first certified
end-to-end FCoE solution for VMware® virtual environments.
With NetApp FCoE solutions and Cisco data center switches now
validated to support VMware virtualized environments, this
significant milestone helps customers achieve greater data center
efficiencies and progress on their journey to the cloud.
- NetApp increases focus on service providers to help
customers move to cloud computing. NetApp's integration of
service providers into its 2010-2011 NetApp Partner Program
tightens the relationship between NetApp, its key service provider
partners, and its value-added reseller partners, allowing them to
more effectively work together to help customers make the
transition to a cloud environment.
Milestones and Awards
- NetApp exceeds exabyte barrier with storage efficiency
technologies. . NetApp became the first storage vendor to
achieve more than an exabyte of storage with deduped storage-system
deployments. As a leader in primary storage deduplication, NetApp
has deployed more than 87,000 deduped storage systems while more
than 12,000 customers have benefitted from its portfolio of storage
efficiency products.
- NetApp customers have purchased more than a petabyte of
Flash Cache. Since its introduction in September 2009, NetApp
Flash Cache has helped customers improve storage efficiency and
performance. NetApp's incorporating flash memory as intelligent
cache in its unified storage systems allows NetApp customers to
optimize performance while decreasing both capital and operating
expenses.
- NetApp ranked #3 in best place to work in D.C. area
list. The Washington Business Journal named NetApp #3 in the
Large Company category (with nonlocal headquarters) on its "Best
Places to Work" list in the D.C. area for 2010. The honor marks the
second consecutive year that NetApp has finished in the top five in
this ranking and is further testament to NetApp's strong corporate
culture.
- NetApp ranked #1 in Switzerland by the Great Place to Work
Institute®. NetApp was recognized as the "Best Employer in
Switzerland" by the Great Place to Work Institute for 2010. NetApp
now ranks in the top 20 in 10 different regions, including #7 in
the United States.
- NetApp RTP data center earns EPA's ENERGY STAR®.
The NetApp RTP dynamic data center became the first ever data
center to earn the U.S. Environmental Protection Agency's (EPA's)
prestigious ENERGY STAR for its superior energy efficiency.
Achieving a near- perfect score of 99 out of 100, the unique RTP
data center has reduced CO2 emissions for NetApp by
approximately 95,000 tons per year, which is equivalent to removing
16,000 cars per year from the road.
- NetApp recognizes cutting-edge customers with NetApp
Innovation Awards. NetApp held its sixth annual Innovation
Awards to honor cutting-edge customers from around the world who
leveraged NetApp solutions in an innovative way to improve their
business. Winning organizations included Microsoft, Weta Digital,
BT Global Services, WNS Global Services, T-Systems, and the
Pennsylvania Office of the Attorney General.
Webcast and Conference Call
Information
The NetApp first quarter fiscal year 2011 results conference call
will be broadcast live on the Internet at
http://investors.netapp.com on Wednesday, August 18, 2010, at
2:00 p.m. Pacific Time. This press release and any other
information related to the call will also be posted on the Web site
at that location. An audio replay Webcast will also be available
after 4:00 p.m. Pacific Time on our Web site.
NetApp now uses a new hybrid format for
disclosing key financial information associated with our quarterly
results. Concurrent with the press release, NetApp will post and
distribute a separate document with financial commentary and
statistics that was previously disclosed during our earnings calls.
These prepared remarks will be available prior to the conference
call in order to provide the investment community with additional
time to analyze our results. This commentary will not be read
during the earnings call.
About NetApp
NetApp creates innovative storage and data management solutions
that deliver outstanding cost efficiency and accelerate business
breakthroughs. Discover our passion for helping companies around
the world go further, faster at
www.netapp.com.
"Safe Harbor" Statement Under U.S. Private
Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements include all of the statements under the Outlook
section relating to our forecasted operating results, share count,
and metrics for the second quarter of fiscal year 2011, our
expectations regarding our current and new partnerships and
strategic alliances, and the benefits that we expect our customers
to realize from using our products and those from our strategic
alliances and partnerships. These forward-looking statements
involve risks and uncertainties, and actual results could vary.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include
customer demand for our products and services; our ability to
increase revenue and manage our operating costs; increased
competition risks associated with the anticipated growth in network
storage market; general economic and market conditions; our ability
to deliver new product architectures and enterprise service
offerings; our ability to design products and services that compete
effectively from a price and performance perspective; our reliance
on a limited number of suppliers; our ability to accurately
forecast demand for our products; and other important factors as
described in NetApp reports and documents filed from time to time
with the Securities and Exchange Commission (SEC), including the
factors described under the sections captioned "Risk Factors" in
our most recently submitted 10-K and 10-Q. We disclaim any
obligation to update information contained in these forward-looking
statements whether as a result of new information, future events,
or otherwise.
###
NetApp, the NetApp logo, Go further, faster,
and SnapManager are trademarks or registered trademarks of NetApp,
Inc. in the United States and/or other countries. VMware is a
registered trademark of VMware, Inc. Microsoft and SharePoint are
registered trademarks of Microsoft Corporation. All other brands or
products are trademarks or registered trademarks of their
respective holders and should be treated as such.
1GAAP earnings per share is
calculated using the diluted number of shares for all periods
presented.
2Non-GAAP net income excludes the amortization of
intangible assets, stock-based compensation expenses, acquisition
related income and expenses, restructuring and other charges, asset
impairments, non-cash interest expense associated with our
convertible debt, net losses or gains on investments, and our GAAP
tax provision, but includes a non-GAAP tax provision based upon our
projected annual non-GAAP effective tax rate for the first three
quarters of the fiscal year and an actual non-GAAP tax provision
for the fourth quarter of the fiscal year. Non-GAAP earnings per
share is calculated using the diluted number of shares for all
periods presented.
NetApp Usage of Non-GAAP
Financials
The Company refers to the non-GAAP financial measures cited above
in making operating decisions because they provide meaningful
supplemental information regarding the Company's ongoing
operational performance. Non-GAAP net income excludes the
amortization of intangible assets, stock-based compensation
expenses, acquisition related income and expenses, restructuring
and other charges, asset impairments, non-cash interest expense
associated with our convertible debt, net losses or gains on
investments, and our GAAP tax provision, but includes a non-GAAP
tax provision based upon our projected annual non-GAAP effective
tax rate for the first three quarters of the fiscal year and an
actual non-GAAP tax provision for the fourth quarter of the fiscal
year. We have excluded these items in order to enhance investors'
understanding of our ongoing operations. The use of these non-GAAP
financial measures has material limitations because they should not
be used to evaluate our company without reference to their
corresponding GAAP financial measures. As such, we compensate for
these material limitations by using these non-GAAP financial
measures in conjunction with GAAP financial measures.
These non-GAAP financial measures are used
to: (1) measure company performance against historical results, (2)
facilitate comparisons to our competitors' operating results, and
(3) allow greater transparency with respect to information used by
management in financial and operational decision making. In
addition, these non-GAAP financial measures are used to measure
company performance for the purposes of determining employee
incentive plan compensation. We have historically reported similar
non-GAAP financial measures to our investors and believe that the
inclusion of comparative numbers provides consistency in our
financial reporting at this time.
Press Contacts:
Rachel York
Max Australia
+ 61 2 9954-3492
rachel.york@maxaustralia.com.au