Sunnyvale, Calif. - August 13, 2008 --
NetApp (NASDAQ: NTAP) today reported results for the first quarter
of fiscal year 2009. Revenues for the first fiscal quarter of 2009
were $869 million, an increase of 26% compared to revenues of $689
million for the same period a year ago.
For the first fiscal quarter of 2009, GAAP
net income was $38 million, or $0.11 per share1 compared
to GAAP net income of $34 million, or $0.09 per share for the same
period in the prior year. Non-GAAP2 net income for the
first fiscal quarter of 2009 was $76 million, or $0.22 per share,
compared to non-GAAP net income of $76 million, or $0.20 per share
for the same period a year ago.
"Our new fiscal year got off to a good start,
and our efforts to increase awareness and sales capacity in order
to secure new customers are delivering results," said Dan
Warmenhoven, chairman and CEO. "Despite economic uncertainty,
customers have continued to expand and evolve their storage
infrastructure and are looking to NetApp to help them reduce costs
and enable new capabilities."
Outlook
- NetApp estimates revenue for the second quarter of fiscal year
2009 to be between $910 million and $940 million.
- NetApp estimates that the second quarter of fiscal year 2009
GAAP earnings per share will be approximately $0.16 to $0.19 per
share. NetApp estimates second quarter fiscal year 2009 non-GAAP
earnings per share to be approximately $0.27 to $0.30 per
share.
Quarterly Highlights
In the first quarter of fiscal year 2009, NetApp launched new
solutions that continue to help customers transform their data
center architectures through higher efficiencies and asset
utilization, greater power and space savings, innovative data
management techniques, and the ability to reduce redundant data on
primary storage with deduplication technology. Recognized by many
industry awards, NetApp® solutions continue to be a leader in
the storage market in quality and innovation. Industry analyst
reports during the quarter confirmed that NetApp continues to grow
much faster than the overall storage market.
During the first quarter, NetApp announced
the new FAS3100 and V3100 storage system series, Storage
Acceleration Appliance, and Performance Acceleration Module which
enable customers to achieve such benefits as accelerated time to
market, improved engineering productivity, and maximized return on
their storage infrastructure.
NetApp also announced that the NetApp
V-Series now allows customers who have EMC, Hitachi Data Systems,
Hewlett Packard, or other storage systems to deploy NetApp
deduplication technology to reduce redundant copies of data on
these systems. NetApp deduplication has quickly become one of the
fastest growing technologies in the company's history.
Also during the quarter, NetApp expanded its
portfolio of storage and data management solutions for virtualized
IT environments that include Microsoft® Windows® Server
2008, Microsoft SQL Server™ 2008, Exchange Server 2007, and
Microsoft Hyper-V. NetApp also added the availability of the
SANscreen® product suite, which was acquired in the
acquisition of Onaro, to its global sales and channel partner
programs.
NetApp continues to focus on expanding its
worldwide channel strategy, programs, and best practices by rolling
out the fiscal year 2009 VIP Program worldwide. This partner
program demonstrates NetApp's commitment to building upon its
strong relationships with partners by enhancing key initiatives
such as services and technology specialization programs.
NetApp products and solutions continue to be
rated highly by third parties. During the quarter, NetApp received
the following awards: Diogenes Labs-Storage Magazine Quality Awards
III (Storage), 2008 "Products of the Year" (eWeek Channel
Insider), 2008 ServerWatch Product Excellence Awards
(ServerWatch), 2008 Tomorrow's Technology Today Award
(Info Security Products Guide), and 2008 Service and Support
Professionals Association (SSPA) STAR Award.
NetApp continued to gain momentum in the
storage software market. According to IDC's Worldwide Quarterly
Storage Software Tracker Q1 2008,3 NetApp grew more than
twice as fast as the storage software market year over year. Also
according to IDC, NetApp maintained the number-two market share
position in the storage replication software market and continued
to close the gap on the market leader. NetApp gained share in the
storage replication market and grew fastest among the top five
vendors year over year.
NetApp gained share in the networked storage
market (which includes FC SAN, NAS, and iSCSI) in first quarter of
calendar year 2008 in both revenue and capacity shipped, as
reported in IDC's Worldwide Quarterly Disk Storage Systems Tracker
Q1 2008.4 According to IDC, NetApp share gains moved the
company from the fourth position in the networked storage market to
tying for the number-two slot, growing to a 12.0% share in the
first quarter of calendar year 2008, up from a 10.1% share in
fourth quarter of calendar year 2007.
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, August 13, 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) 761-0748 in the United States and (617)
614-2706 outside the United States. The pass code for both numbers
is 70851753.
- 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 18417320. 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 second quarter of fiscal year 2009, and statements
regarding the performance 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 nondeferred
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 or loss on
investments, 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 first
quarter of calendar year 2008.
4 IDC Worldwide Quarterly Disk Storage Systems Tracker
first quarter of calendar year 2008.
NetApp, the NetApp logo, Go further, faster,
and SANscreen are trademarks or registered trademarks of NetApp,
Inc. in the United States and/or other countries. All other brands
or products are trademarks or registered trademarks of their
respective holders and should be treated as such.
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 operational
performance. These non-GAAP results of operations exclude
amortization of intangible assets, stock-based compensation
expenses, acquisition-related retention costs, net gain or loss on
investments, 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