NetApp Reports Second Quarter Fiscal Year 2015 Results

Net Revenues of $1.54 Billion; Non-GAAP EPS of $0.70

  • Clustered Data ONTAP® nodes shipped more than tripled year-over-year
  • Flash capacity shipped more than doubled year-over-year
  • $652 million returned to shareholders in share repurchases and cash dividends

NetApp (NASDAQ: NTAP) today reported financial results for the second quarter of fiscal year 2015, ended October 24, 2014.

Second Quarter Financial Results
Net revenues for the second quarter of fiscal year 2015 were $1.54 billion. GAAP net income for the second quarter of fiscal year 2015 was $160 million, or $0.49 per share,[1] compared to GAAP net income of $167 million, or $0.48 per share, for the comparable period of the prior year. Non-GAAP net income for the second quarter of fiscal year 2015 was $226 million, or $0.70 per share,[2] compared to non-GAAP net income of $232 million, or $0.66 per share, for the comparable period of the prior year.

Cash, Cash Equivalents and Investments
NetApp ended the second quarter of fiscal year 2015 with $5.27 billion of total cash, cash equivalents and investments and during the quarter generated $381 million in cash from operations. The company returned $652 million to shareholders during the quarter through share repurchases and a cash dividend. The next dividend in the amount of $0.165 per share will be paid on January 22, 2015, to shareholders of record as of the close of business on January 9, 2015.

“We are pleased with our performance in the second quarter with revenue and non-GAAP EPS coming in above the mid-point of our guidance range,” said Tom Georgens, chairman and CEO. “We have dramatically expanded the NetApp portfolio at an unprecedented pace. Our best of breed solutions not only solve the challenges enterprises face today, but ensure a seamless path to the hybrid cloud that enables customers to effectively manage their data across multiple cloud resources.”

Q3 Fiscal Year 2015 Outlook
The Company provided the following financial guidance for the third quarter of fiscal year 2015:

  • Net revenues are expected to be in the range of $1.56 billion to $1.66 billion
  • GAAP earnings per share is expected to be in the range of $0.52 to $0.57 per share
  • Non-GAAP earnings per share is expected to be in the range of $0.74 to $0.79 per share

Business Highlights

  • NetApp Delivers New Products:
    • First Shipments of FlashRay Systems. FlashRay™, the purpose-built all-flash storage array, is now shipping with the NetApp Mars™ operating system which improves the performance, efficiency and manageability of all-flash storage architectures used in enterprise application environments.
    • Object Storage for the Hybrid Cloud. StorageGRID® Webscale object storage software helps organizations leverage the hybrid cloud and manage massive data-sets with reduced cost and secure data management.
    • Software Defined Storage Accelerates and Improves Cloud Performance. New OnCommand® software enables improved monitoring of data center trends across environments. Flash-optimized FlexPod with VMware Horizon View for end-user computing helps reduce implementation risk and accelerate desktop deployments with a validated architecture.
  • NetApp Strengthens Partnerships:
    • Extends Alignment with VMware. NetApp and VMware continue their commitment to work together to accelerate hybrid cloud deployment and enable customers to better manage data across any cloud.
  • NetApp Recognition and Awards:
    • #3 World’s Best Multinational Workplace. Innovation and teamwork give NetApp a competitive differentiator that enables the company to meet customers’ most challenging storage and data management needs.
    • Best of Show for Flash Innovation. NetApp was awarded Best of Show Most Innovative Flash Memory Customer Implementation for its EF-Series all-flash-array deployment at Diamond Light Source. NetApp was also selected by IT pros in the annual SSD survey as the Market Leader favorite for all-flash NAS SSD.

Webcast and Conference Call Information
NetApp will host a conference call to discuss these results today at 2:30 p.m. Pacific Time. To access the live webcast of this event, visit the NetApp Investor Relations website at investors.netapp.com. In addition, this press release, historical supplemental data tables and other information related to the call will be posted on the Investor Relations website. An audio replay will also be available on the website after 4:30 p.m. Pacific Time today.

About NetApp
Leading organizations worldwide count on NetApp for software, systems and services to manage and store their data. Customers value our teamwork, expertise and passion for helping them succeed now and into the future.