View financial tables:
Sunnyvale, Calif. - November
12, 2008 -- NetApp (NASDAQ: NTAP), NetApp (NASDAQ:
NTAP) today reported results for the second fiscal quarter of 2009.
Revenues for the second fiscal quarter of 2009 were $912 million,
an increase of 15% compared to revenues of $792 million for the
same period a year ago.
For the second fiscal quarter of 2009, GAAP
net income was $49 million, or $0.15 per share1 compared
to GAAP net income of $84 million, or $0.23 per share for the same
period in the prior year. Non-GAAP2 net income for the
second fiscal quarter of 2009 was $92 million, or $0.28 per share,
compared to non-GAAP net income of $116 million, or $0.32 per share
for the same period a year ago.
Revenues for the first six months of the
current fiscal year totaled $1.78 billion, compared to revenues of
$1.48 billion for the first six months of the prior year, an
increase of 20% year over year.
GAAP net income for the first six months of
the current fiscal year totaled $87 million, or $0.26 per share,
compared to GAAP net income of $118 million, or $0.32 per share for
the first six months of the prior fiscal year. Non-GAAP net income
for the first six months of the current fiscal year totaled $168
million, or $0.50 per share, compared to non-GAAP net income of
$192 million, or $0.52 per share for the first six months of the
prior fiscal year.
"NetApp produced solid revenue and earnings
results despite a challenging economic environment," said Dan
Warmenhoven, chairman and CEO. "More and more customers are turning
to NetApp to drive down their storage costs by increasing their
storage utilization. We expect NetApp's unique storage efficiency
offerings to resonate well with customers, particularly during
periods of constrained IT spending."
Given the reduced visibility caused by the recent changes in the
macroeconomic environment, NetApp will not be providing formal
revenue guidance for the third quarter of fiscal year 2009.
- NetApp estimates non-GAAP gross margins for the third quarter
of fiscal year 2009 to be substantially the same level as reported
in the second quarter of fiscal year 2009.
- NetApp estimates non-GAAP operating expenses for the third
quarter of fiscal year 2009 to be roughly flat from the operating
expenses reported in the second quarter of fiscal year 2009.
In the second quarter of fiscal year 2009, NetApp introduced new
solutions that continue to help customers transform their data
center architectures through higher efficiencies and asset
utilization, greater power and space savings, and innovative data
management techniques. NetApp also received many industry awards
that recognize its leadership in quality, innovation, and service
in the storage market.
NetApp launched a global program that offers
customers a guarantee3 that they will use 50% less
storage in their virtual environments with NetApp® compared to
traditional storage. NetApp wants to assure customers who choose
NetApp and leverage its unique storage efficiency technologies that
they will reduce their overall storage usage while improving
During the second quarter, NetApp announced
that it will be the first storage vendor to offer native Fibre
Channel over Ethernet (FCoE) SAN storage solutions. FCoE support
extends NetApp's unified storage architecture, enabling customers
to address changing business needs and opportunities with flexible
data access across all protocols.
NetApp announced the availability of
deduplication on NetApp Virtual Tape Library (VTL) systems,
enabling customers to lower the disk capacity required to back up
any storage system, including EMC and HP, up to
During the quarter, NetApp announced the
NetApp GetSuccessful™ Partner Enablement Program to help
partners maximize strategic opportunities and distinguish
themselves with their customers. The program is a new benefit of
NetApp's current VIP Partner Program and complements the Authorized
Professional Service Provider and the Virtualization Specialization
programs announced earlier this year.
NetApp continues to receive industry
recognition from third parties. During the quarter, NetApp received
the following awards:
- Diogenes Labs' Storage Magazine Quality Awards for the
Enterprise Arrays category (Storage)
- 2008 InformationWeek 500
- Penton Media's Windows IT Pro® 2008 Community Choice
Awards (Windows IT Pro)
- Service Management Achievement Award for Executive Stewardship
- 2008 Rising Star Award (Global Technology Distribution
Council), Learning in Practice Awards (Chief Learning
- "Best Places to Work" in Research Triangle Park 2008
(Triangle Business Journal)
Webcast and Conference Call
- The NetApp quarterly results conference call will be broadcast
live on the Internet at http://investors.netapp.com on
Wednesday, November 12, 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) 831-6270 in the United States and (617)
213-8858 outside the United States. The pass code for both numbers
- 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 76798622. The Webcast replay will be posted on our Web site
for at least one year.
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 third quarter of fiscal year 2009 and statements regarding
our 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 the
material and adverse global economic and market conditions that
currently exist (particularly in the credit markets) and that are
expected to persist well into calendar 2009; our ability to build
nondeferred backlog to levels consistent with our past results and
to increase our revenue over the next several quarters; 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
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, prior acquisition related
costs, net gain or loss on investments, 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 The description of the guarantee program in this press
release is a summary and does not purport to be complete. For a
full description of the terms and conditions of the program, go to
description of the guarantee program is not incorporated by
reference into this press release.
4 Based on NetApp internal testing, October 2008.
NetApp, the NetApp logo, Go further, faster,
and GetSuccessful 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
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, prior
acquisition-related costs , net gain or loss on investments, 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.
NetApp Use of Corporate Web
In accordance with SEC guidance published on August 22, 2008
(Release No. 34-58288), NetApp will begin to disseminate
material information about the company through its corporate Web
site within the next several fiscal quarters. NetApp intends to
designate a separate portion of its corporate Web site for purposes
of these disclosures and will include a prominent link on its Web
site to allow visitors to locate this material information, which
will be routinely updated. The Web site will supplement, rather
than replace, NetApp's current existing channels of information
Ph: (408) 822-6551
Ph: (408) 822-6909
Ph: (408) 822-6428