Sunnyvale, Calif.-August 17,
2011-NetApp (NASDAQ: NTAP) today reported results for the
first quarter of fiscal year 2012, which ended July 29, 2011.
Revenues for the first quarter of fiscal year 2012 totaled $1.458
billion compared to revenues of $1.154 billion for the same period
one year ago.
For the first quarter of fiscal year 2012,
GAAP net income was $139.5 million, or $0.34 per share, compared to GAAP net income of
$150.7 million, or $0.40 per share, for the same period a year ago.
Non-GAAP net income for the first quarter of fiscal year 2012 was
$222.3 million, or $0.55 per share, compared to non-GAAP net income of $190.9
million, or $0.51 per share, for the same period a year ago.
"Despite the challenging macroeconomic
environment modestly impacting our revenue growth, NetApp still
produced earnings per share slightly above the midpoint of our
targeted range. The company achieved record levels of FAS6000
systems sales, near record numbers of new enterprise customer wins,
and our new E-series sales exceeded our forecast," said Tom
Georgens, president and CEO. "Our gross margin performance
demonstrates the strength of our competitive position in the
market, helping us to achieve healthy operating results and
earnings per share."
- NetApp estimates revenue for the second quarter of fiscal year
2012 to be in the range of $1.500 billion to $1.600 billion, which
equates to approximately 3% to 10% sequential revenue growth and
approximately 20% to 28% year-over-year revenue growth.
- NetApp estimates that second quarter fiscal year 2012 GAAP
earnings per share will be approximately $0.38 to $0.42 per share.
NetApp estimates that second quarter fiscal year 2012 non-GAAP
earnings per share will be approximately $0.58 to $0.62 per
- NetApp estimates that share count for the second quarter of
fiscal year 2012 will decrease to approximately 392 million shares,
including an estimated 10 million shares from the company's
outstanding convertible notes and 2 million shares from outstanding
warrants. Share count does not include the company's outstanding
note hedges which are expected to offset 80% of the dilution from
the convertible notes at maturity or conversion.
In the first quarter of fiscal year 2012, NetApp innovation
continued to help customers and partners more effectively manage
significant data growth and capitalize on tomorrow's business
opportunities. During the quarter, NetApp completed its purchase of
the Engenio external storage systems business from LSI Corporation
and unveiled new solutions to address growing customer requirements
in the areas of big bandwidth and analytics. Additionally, NetApp
continued to be a partner of choice for customers in their
transition to the cloud. NetApp again received several awards
honoring its innovation leadership, channel excellence, and
culture, most recently being named one of the world's most
innovative companies by Forbes magazine. Highlights for
the quarter included the following:
NetApp Builds on E-Series Platform,
Delivers Solutions to Help Customers and OEMs Address Big Data
- The new NetApp® E5400 storage system delivers compelling
performance for big-bandwidth applications, extreme storage
density, and exceptional uptime, enabling OEMs to address their
customers' growing high-performance workload requirements. NetApp
also introduced two new solutions built on the E-Series platform.
The Full-Motion Video Storage Solution enables government agencies
to take advantage of full-motion video technology to make better
decisions in the field. The Hadoop Storage Solution gives customers
the ability to speed deployment and simplify management of Hadoop
infrastructures for improved analytics.
NetApp Accelerates Customers' Path to
- NetApp bolsters management capabilities to provide
common foundation for enterprise clouds. New technologies
in NetApp OnCommand™ management software enable customers to
accelerate and simplify their transition to public, private, and
hybrid cloud models. The NetApp Alliance Technology Partner Program
also now includes cloud management leaders, delivering integration
between industry-leading cloud management solutions and NetApp to
provide customers with end-to-end management of the entire cloud
- NetApp collaborates with Microsoft and Cisco to help
customers transition to a private cloud. The NetApp
Hyper-V Cloud Fast Track with Cisco data center architecture design
offers customers advanced management and service automation
capabilities to accelerate private cloud deployment and improve
operations. With this new solution NetApp is also now part of
Microsoft's Hyper-V Cloud Fast Track program, further strengthening
the relationship between the two companies.
- NetApp and Cisco FlexPod data center solution shows
strong market momentum. NetApp and Cisco now have more
than 150 customers who have implemented data center solutions based
on the FlexPod™ design architecture. The pretested
architectural design guide combines networking, computing, and
storage in a shared infrastructure and helps channel partners
accelerate and simplify customers' transition to the cloud.
Milestones and Awards
- NetApp named one of world's most innovative companies
by Forbes magazine. NetApp, the only major
storage vendor to make the list of 100 companies, was recognized
for building a culture of innovation that has transformed the
foundation of its customers' business and has been a catalyst to
their success. This innovation has been a major driver behind
NetApp's growth and continued success.
- NetApp continues to rank as one of the best places to
work. NetApp was once again named a "best place to work,"
ranking #4 in Minnesota in the small employer category, #5 in
Washington, D.C. in the large company category, and #14 in Boston
in the medium-size category. The honors are a testament to NetApp's
model company approach, strong culture, and talented
- NetApp recognized for continued channel
leadership. NetApp was named to Everything Channel's CRN
Virtualization 100 list due to its success in helping resellers
grow their business and support their customers.
Webcast and Conference Call
The NetApp first quarter fiscal year 2012 results conference call
will be broadcast live on the Internet at investors.netapp.com on
Wednesday, August 17, at 2 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 be
available after 4 p.m. Pacific time on the Web site.
NetApp uses a hybrid format for disclosing
key financial information associated with our quarterly results.
Concurrent with the press release, NetApp posts a supplemental
commentary with financial information and statistics to our Web
site at investors.netapp.com.
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/in.
NetApp, the NetApp logo, Go further, faster,
Engenio, FlexPod, and OnCommand are trademarks or registered
trademarks of NetApp, Inc. All other marks are the property of
their respective owners and should be treated as such.
"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 2012, as well as
expectations regarding our partnerships and strategic alliances and
the benefits that we expect our customers to realize from using our
products and 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 include, but are not limited to, customer
demand for our products and services and our ability to accurately
forecast this demand; our ability to effectively integrate the
recently acquired Engenio external storage systems business and
achieve our anticipated results for such business; our ability to
increase revenue and manage our operating costs; increased
competition risks in the markets in which we compete; our reliance
on a limited number of suppliers; general economic and market
conditions, particularly U.S. budget and debt considerations and
the continuing fiscal challenges in the Euro zone; 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; 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 titled
"Risk Factors" in our most recently submitted Annual and Quarterly
Reports on Forms 10-K and 10-Q, respectively. We disclaim any
obligation to update information contained in these forward-looking
statements whether as a result of new information, future events,
NetApp Usage of Non-GAAP
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.
GAAP earnings per share is calculated using the
diluted number of shares for all periods presented.
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. Non-GAAP earnings per
share is calculated using the diluted number of shares for all
80% hedged on maturity or conversion of the