Sunnyvale, Calif. - May 21, 2008 --
NetApp (NASDAQ: NTAP), today reported results for the fourth
quarter of fiscal year 2008. Revenues for the fourth fiscal quarter
were $938 million, an increase of 17% compared to revenues of $801
million for the same period a year ago and an increase of 6%
compared to $884 million in the prior quarter.
For the fourth fiscal quarter, GAAP net
income was $90 million, or $0.26 per share1 compared to
GAAP net income of $90 million, or $0.23 per share for the same
period in the prior year. Non-GAAP2 net income for the
fourth fiscal quarter was $131 million, or $0.38 per share,
compared to non-GAAP net income of $114 million, or $0.30 per share
for the same period a year ago.
Revenues for fiscal year 2008 totaled $3.3
billion, an increase of 18% compared to revenues of $2.8 billion
for fiscal year 2007. For fiscal year 2008, GAAP net income
increased 4% to $310 million, or $0.86 per share, compared to GAAP
net income of $298 million, or $0.77 per share for fiscal year
2007. Non-GAAP net income for fiscal year 2008 increased 6% to $455
million, or $1.26 per share, compared to non-GAAP net income of
$431 million, or $1.11 per share for fiscal year 2007.
"NetApp posted a strong finish to the fiscal
year, ending the fourth quarter with 17% growth in revenue and 23%
growth in storage systems," said Dan Warmenhoven chairman and chief
executive officer. "With solid performance from most areas around
the world, customers continue to validate that NetApp provides them
with comprehensive storage and data management solutions at the
lowest cost of ownership in the industry."
Outlook
- NetApp estimates revenue for the first quarter of fiscal year
2009 to be between $845 million and $875 million.
- NetApp estimates that the first quarter fiscal year 2009 GAAP
earnings per share will be approximately $0.09 to $0.13 per share.
NetApp estimates first quarter fiscal year 2009 non-GAAP earnings
per share to be approximately $0.20 to $0.23 per share.
- As presented at their analyst day in March 2008, NetApp
reiterates estimated revenue for the full fiscal year to be between
$3.79 billion and $3.95 billion.
- As presented at their analyst day in March 2008, NetApp
reiterates estimated GAAP earnings per share for the full fiscal
year to be approximately $0.92 to $0.98 per share and non-GAAP
earnings per share to be approximately $1.40 to $1.46 per
share.
Quarterly Highlights
In the fourth quarter of fiscal year 2008,
NetApp launched a new brand identity that makes a bold statement
about NetApp's strength in the marketplace and is designed to drive
greater understanding of NetApp. NetApp also continued to help
customers transform their data center architectures through higher
efficiencies and asset utilization, greater power, space savings,
and innovative data center design and data management
techniques.
During the fourth quarter, NetApp unveiled
the NetApp® Kilo Client, a large testing environment that is
designed to exceed the most scalable and extreme performance
conditions that most enterprises experience in their data
centers.
Also during the quarter, NetApp introduced
new products and capabilities as part of the NetApp Manageability
Software Family. These new products (SnapManager® for Virtual
Infrastructure, SnapManager Compatibility with VMware®
Virtualization Software, and Provisioning Manager) enable customers
to transform their data center architectures. NetApp is providing
customers a proven storage platform for virtualized environments to
achieve increased service levels, higher asset utilization, and
greater data center power, space, and cooling efficiencies.
NetApp was recognized for its green
initiatives with three separate awards for its innovative data
center design and its advanced data management techniques to reduce
power consumption. IDG's Computerworld, the "Voice of IT
Management," selected NetApp as one of the top Green-IT Companies
for 2008. IDG's InfoWorld, the leading integrated media
brand for IT decision makers, named NetApp a winner in
InfoWorld's inaugural Green 15 awards. NetApp was also
named a winner of the prestigious 2008 Green Enterprise IT Award
from the Uptime Institute, a leading research-based think-tank and
corporate advisory on the business and technology issues related to
critical computing environment reliability and energy
efficiency.
NetApp continued to gain momentum in the
storage software market, growing the fastest among the top five
leading storage software providers in 2007. According to IDC's
Worldwide Quarterly Storage Software Tracker Q4 20073,
NetApp grew more than three times faster than the storage software
market in 2007 and gained share in each market segment in which it
provides offerings. This marks the fifth consecutive year that
NetApp grew faster than both the storage software market and the
market leader.
During this quarter, Gartner, Inc.,
positioned NetApp in the "Leaders" quadrant for Enterprise NAS. In
a recently released research note, "Magic Quadrant for Midrange and
High-End NAS Solutions, 1H08,"4 Gartner asserts, "An
enterprise NAS storage vendor in the Leaders quadrant has the
market share, credibility, and marketing and sales capabilities
needed to drive the acceptance of new technologies. It demonstrates
understanding of market needs, is an innovator and thought leader,
and has well-articulated plans that customers and prospects can use
when designing their storage infrastructures and strategies."
NetApp unveiled a new brand identity and
changed the official name of the company from Network Appliance to
NetApp. The new brand identity was designed to achieve a broader
and deeper awareness of the company and to communicate a consistent
promise on a global basis to customers, partners, and employees.
The NetApp brand is strongly grounded in NetApp's "create a model
company" spirit which is based on the core values of the company,
including trust and integrity, leadership, simplicity, teamwork and
synergy, and going beyond.
Webcast and Conference Call
Information
- The NetApp quarterly results conference call will be broadcast
live on the Internet at http://investors.netapp.com on
Wednesday, May 21, 2008, 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.
- The conference call will also be available live in a
listen-only format at (866) 543-6407 in the United States and (617)
213-8898 outside the United States. The pass code for both numbers
is 95037280.
- A replay will be available for 72 hours following the
completion of the live call by dialing (888) 286-8010 in the United
States and (617) 801-6888 outside the United States, using replay
code 13597413. The Webcast replay will be posted on our Web site
for at least one year.
About NetApp
NetApp creates innovative storage and data
management solutions that accelerate business breakthroughs and
deliver outstanding cost efficiency. Discover NetApp's 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 and metrics
for the first quarter fiscal year 2009 and for fiscal year 2009,
and statements regarding the performance and breadth of our product
and service offerings, relative to our competitors' product and
service offerings. 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 our ability to build
non-deferred backlog to levels consistent with our past results and
to increase our revenue over the next several quarters; general
economic and industry conditions, including expenditure trends for
storage-related products; risks associated with the anticipated
growth in network storage and content delivery markets; our ability
to deliver new product architectures and enterprise service
offerings; competition risks, including our ability to design
products and services that compete effectively from a price and
performance perspective; risks with new product introductions; our
reliance on a limited number of suppliers; our ability to
accurately forecast demand for our products and successfully manage
our relationships with our contract manufacturers; our ability to
expand our direct sales operations and reseller distribution
channels; our ability to develop, maintain, and strengthen our
relationships and product offerings with strategic partners; risks
associated with international operations; our ability to
successfully acquire and integrate complementary businesses and
technologies; foreign currency exchange rate fluctuations; and
other important factors as described in NetApp reports and
documents filed from time to time with the Securities and Exchange
Commission, 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.
1 Earnings per share is calculated using the diluted
number of shares for all periods presented.
2 Non-GAAP results of operations exclude amortization of
intangible assets, stock-based compensation expenses,
acquisition-related retention costs, net gain on sale of
investments, gain of sale on assets, restructuring
charges/recoveries, prior acquisition-related costs, and the
related effects on income taxes as well as certain discrete GAAP
provisions for income tax matters recognized ratably for non-GAAP
purposes.
3 IDC Worldwide Quarterly Storage Software Tracker Q4
2007.
4 Gartner Magic Quadrant for Midrange and High-End NAS
Solutions, 1H08.
Network Appliance 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 operational
performance. These non-GAAP results of operations exclude
amortization of intangible assets, stock-based compensation
expenses, acquisition-related retention costs, net gain on sale of
investments, gain on sale of assets, restructuring
charges/recoveries, prior acquisition-related costs, and the
related effects on income taxes as well as certain discrete GAAP
provisions for income tax matters recognized ratably for non-GAAP
purposes. 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 facilitate management's
internal comparisons to the Company's historical operating results
and comparisons to competitors' operating results. We include these
non-GAAP financial measures in our earnings announcement because we
believe they are useful to investors in allowing for greater
transparency with respect to supplemental information used by
management in its financial and operational decision making, such
as employee compensation planning. In addition, 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 Contact:
NetApp
Jodi Baumann
Ph: (408) 822-3974
Jodi.Baumann@netapp.com
Investor Contacts:
NetApp
Tara Dhillon
Ph: (408) 822-6909
tara@netapp.com
NetApp
Billie Fagenstrom
Ph: (408) 822-6428
billief@netapp.com