NetApp Reports Fourth Quarter and Fiscal Year 2015 Results

View Financial Tables (PDF)

Net Revenues for the Fourth Quarter of $1.54 Billion; GAAP EPS of $0.43 and Non-GAAP EPS of $0.65

  • NetApp® clustered Data ONTAP® node shipments increased 163%; All Flash FAS units grew 260% for fiscal year 2015.
  • Cash from operations for fiscal year 2015 was $1.27 billion.
  • Increased first quarter fiscal year 2016 cash dividend by 9% to $0.18 per share.

Sunnyvale, Calif. —May 20, 2015—NetApp (NASDAQ: NTAP) today reported financial results for the fourth quarter and fiscal year 2015, ended April 24, 2015.

Fourth Quarter Financial Results
Net revenues for the fourth quarter of fiscal year 2015 were $1.54 billion. GAAP net income for the fourth quarter of fiscal year 2015 was $135 million, or $0.43 per share,[1] compared to GAAP net income of $197 million, or $0.59 per share, for the comparable period of the prior year. Non-GAAP net income for the fourth quarter of fiscal year 2015 was $202 million, or $0.65 per share,[2], compared to non-GAAP net income of $284 million, or $0.84 per share, for the comparable period of the prior year.

Fiscal Year 2015 Financial Results
Net revenues for fiscal year 2015 were $6.12 billion. GAAP net income for fiscal year 2015 was $560 million, or $1.75 per share,[1] compared to GAAP net income of $638 million, or $1.83 per share, for the comparable period of the prior year. Non-GAAP net income for fiscal year 2015 was $865 million, or $2.70 per share,[2] compared to non-GAAP net income of $968 million, or $2.78 per share, for the comparable period of the prior year.

Cash, Cash Equivalents and Investments
NetApp ended fiscal year 2015 with $5.33 billion of total cash, cash equivalents and investments and generated $1.27 billion in cash from operations. During fiscal year 2015, the Company returned $1.37 billion to shareholders through share repurchases and a cash dividend.

The Company increased the first quarter fiscal year 2016 dividend by 9% to $0.18 per share. The dividend will be paid on July 23, 2015, to shareholders of record as of the close of business on July 10, 2015.

“We are not satisfied with our fourth quarter results and are taking concrete action to transition NetApp for the next phase of growth,” said Tom Georgens, chairman and CEO. “Clustered ONTAP is the foundation of a Data Fabric, our vision for the future of data management, which enables enterprises to realize the value of the cloud as a seamless extension of their on-premises environment. This vision is resonating well with customers and underpins our confidence.”

Q1 Fiscal Year 2016 Outlook
The Company provided the following financial guidance for the first quarter of fiscal year 2016:

  • Net revenues are expected to be in the range of $1.275 billion to $1.375 billion
  • GAAP loss per share is expected to be in the range of $0.11 to $0.06 per share
  • Non-GAAP earnings per share is expected to be in the range of $0.20 to $0.25 per share

Business Highlights

  • NetApp Strengthens Partnerships:
    • NetApp Provides a Secure Path to Transfer Data from On-premises to Amazon Web Services Cloud Solutions. As an Amazon Machine Image, three new models of NetApp SteelStore cloud-native backup solution provide an efficient and secure approach to backing up cloud-based workloads. NetApp supports Amazon Simple Storage Service (Amazon S3) as a storage tier to NetApp StorageGRID® Webscale.
  • NetApp Expands Product Portfolio:
    • New All-Flash and Hybrid Storage Arrays Accelerate High Performance for Enterprise-Class SAN Applications. The new EF560 all-flash array offers consistent latency, bandwidth and IOPS critical to enterprise database and analytics applications. The hybrid E5600 storage array delivers increased performance and reliability for more capacity-intensive SAN applications including data warehousing, email and backup.
  • NetApp Expands Hybrid Cloud Solutions in Support of Data Fabric Vision:
    • NetApp OnCommand® Insight 7.1. The new software includes enhanced features for brokering and monitoring hybrid storage deployments as well as innovations that reduce storage operating expenses and capital expenditures while improving capacity planning.
    • OnCommand Cloud Manager Software and NetApp Cloud ONTAP® Software Subscription. Customers can simplify deployment of Cloud ONTAP and OnCommand Cloud Manager by using software subscriptions that manage NetApp’s customer data replication to the cloud with a single application.
    • StorageGRID Appliance and StorageGRID Webscale Software for Scalable, Durable Object Storage. NetApp introduced the StorageGRID 5560 appliance and StorageGRID Webscale software 10.1, which adds support for industry-leading storage efficiency through hierarchical globally distributed erasure coding for long-term archives.
  • NetApp Recognition and Awards:
    • NetApp All-Flash Arrays Achieve Industry-Standard Benchmarks. NetApp’s all-flash EF560 achieved the leading SPC-1 price-performance benchmark for all-flash arrays[3] with an average response time of less than one millisecond. The NetApp All Flash FAS8080 placed #5 in the SPC-1 “Top Ten” list by Performance.[3]
    • 2015 Best Companies to Work For. For the 13th year in a row, NetApp is one of the Fortune 100 Best Companies to Work For. Being on the FORTUNE "100 Best" list is a testament to NetApp’s strong global culture and is a reflection of the passion and commitment that employees bring to work every day.

Webcast and Conference Call Information
NetApp will host a conference call to discuss these results today at 2:00 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 4:00 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.

Press Contact: Investor Contact:
Meghan Fintland
NetApp
(408) 822-1389
Meghan.Fintland@netapp.com
Kris Newton
NetApp
(408) 822-3312
Kris.Newton@netapp.com