Network Appliance Announces Results for Fourth Quarter and Fiscal Year 2004
Sunnyvale, Calif. - May 18, 2004 --
Network Appliance, Inc. (NASDAQ: NTAP) today announced
results for the fourth quarter and fiscal year
2004. Revenues for the fourth fiscal quarter were $337.0 million,
an increase of 39.5% compared to revenues of $241.6 million for the
same period a year ago and a 13% increase compared to $297.3
million in the prior quarter.
For the fourth fiscal quarter, GAAP net income increased 47% to
$36.4 million, or $0.10 per share(1) compared to GAAP net income of
$24.8 million, or $0.07 per share for the same period in the prior
year. Pro forma(2) net income for the fourth fiscal quarter
increased 71% to $43.5 million, or $0.12 per share, compared to pro
forma net income of $25.5 million, or $0.07 per share for the same
period a year ago.
Revenues for fiscal year 2004 were $1.17 billion, an increase of
31% compared to revenues of $892.1 million for fiscal year
For fiscal year 2004, GAAP net income was $152.1 million, or $0.42
per share, compared to GAAP net income of $76.5 million, or $0.22
per share for fiscal year 2003. Pro forma net income for fiscal
year 2004 increased 74% to $146.0 million, or $0.40 per share,
compared to pro forma net income of $83.8 million, or $0.24 per
share for fiscal year 2003.
"NetApp posted exceptional performance during the quarter with
revenues growing 39.5% year over year. Our accelerating growth
during the year was driven by the adoption of our new systems
platforms, secondary storage for compliance applications, and our
extended interconnect offerings for SAN and iSCSI," said Dan
Warmenhoven, CEO of Network Appliance. "Investments we made over
the past several years are paying off in our growth today and we
plan to continue investing in our business to take full advantage
of current and emerging market opportunities that will fuel our
growth in the future."
Throughout the fourth quarter of fiscal year 2004, Network
Appliance reinforced its position as a storage leader with
milestone deployments, expanded partnerships, and continued market
acceptance for its unified storage, NearStore®, and
Network Appliance completed its acquisition of Spinnaker Networks,
Inc. which will accelerate the delivery of the NetApp®
"Storage Grid" architecture, enabling customers to leverage even
more value from their storage and data infrastructures. Also during
the quarter, the company announced several key industry milestones,
including reaching the 100th iSCSI installation and the deployment
of over a petabyte (1000 TB) of compliance storage in enterprise
During the fourth quarter of fiscal year 2004, Network Appliance
announced strategic partnerships with Agfa, AppIQ, BearingPoint,
CreekPath, FileNet, Fujitsu, SmarTeam, Sun Microsystems and VERITAS
to address a variety of data management, information lifecycle
management (ILM), backup and recovery, and compliance/retention
issues central to enterprise customers today. The company also
announced support for the SNIA SMI-S standard to simplify SAN
management and joined the Enterprise Grid Alliance (EGA) to drive
industry adoption of Grid computing.
Also during the fourth quarter, global customers from a variety of
industries worldwide selected Network Appliance to store, manage,
and consolidate their business- and mission-critical data. Customer
wins included AT&T, Baring Asset Management, Continental Teves
AG, Cross Country Healthcare, Inc., Honda Motor Company,
Lockheed-Martin, NASA Flight Dynamics, PDI/DreamWorks SKG,
Renault-Nissan, State of Kentucky, The United States Federal
Aviation Administration (FAA), University of Phoenix Online and
Volkswagen Coordination Center.
Network Appliance™ product- and service-related highlights
during the fourth quarter included three key awards, including the
selection of Network Appliance customer Mustang Engineering for
Storage Network World's (SNW's) "Best Practices in Storage" award
for Data Lifecycle Management (DLM). Network Appliance also won
Australian Technology & Business Magazine's coveted Editor's
Choice award for the NetApp FAS250 unified storage system.
Additionally, the company won the Service & Support
Professionals Association (SSPA) prestigious WebStar Service Award
for the fourth consecutive year.
1. Earnings per share represents the diluted number of shares for
all periods presented.
2. Pro forma results for all periods presented exclude amortization
of intangible assets, in process research and development, stock
compensation, restructuring charges, net gain or loss on
investments, gain on sale of intangible assets, and the related
effects on income taxes, as well as an income tax benefit from a
nonrecurring foreign tax ruling.
Conference Call Information
- The NetApp quarterly results conference
call will be broadcast live via the Internet at
http://investors.netapp.com/ on Tuesday, May 18,
2004 at 2:00 p.m. Pacific time. This press release and any other
information related to the call will also be posted to the Web site
at that location. The conference call will also be available live
in a listen-only format at (800) 240-8621 in the United States and
(303) 262-2190 outside the United States.
- A replay will be available for 72 hours
following completion of the live call by dialing (800) 405-2236 in
the United States and (303) 590-3000 outside the United States,
replay code 577898.
About Network Appliance
Network Appliance is a world leader in unified storage solutions
for today's data-intensive enterprise. Since its inception in 1992,
Network Appliance has delivered technology, product, and partner
firsts that continue to drive "The evolution of storage.™"
Information about Network Appliance solutions and services is
available at www.netapp.com.
NetApp, NearStore and NetCache are registered
trademarks and Network Appliance and The evolution of storage are
trademarks of Network Appliance, Inc. in the U.S. and other
countries. All other brands or products are trademarks or
registered trademarks of their respective holders and should be
treated as such.
Network Appliance Usage of Pro Forma
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. In addition, 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. 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.
"Safe Harbor" Statement under U.S. Private
Securities Litigation Reform Act of 1995
This press release contains forward-looking
statements within the meeting of the Private Securities Litigation
Reform Act of 1995. These statements include comments regarding:
investing in our business to take full advantage of market
opportunities and the acquisition of Spinnaker Networks which will
accelerate the delivery of the NetApp "Storage Grid" architecture.
These forward-looking statements involve risks and uncertainties,
and actual results could vary. Factors that could impact our
ability to achieve our goals include: general economic and industry
conditions, including expenditure trends for storage related
products; our ability to deliver new product architectures and
products which meet market acceptance; our ability to design
products which compete effectively from a price and performance
perspective, our ability to successfully complete and integrate our
proposed acquisition of Spinnaker Networks; and other important
factors as described in Network Appliance, Inc.'s reports and
documents filed from time to time with the Securities and Exchange
Commission, including our most recently submitted 10-K and
Voce Communications for Network Appliance, Inc.