Sunnyvale, Calif.- August 15, 2012
- NetApp (NASDAQ: NTAP) today reported results for the
first quarter of fiscal year 2013, which ended July 27, 2012.
Revenues for the first quarter of fiscal year 2013 were in line
with our prior guidance and totaled $1.445 billion, compared to
revenues of $1.458 billion for the same period one year ago.
For the first quarter of fiscal year 2013,
GAAP net income was $64 million, or $0.17 per share, compared to GAAP net income of $140
million, or $0.34 per share for the same period a year ago.
Non-GAAP net income for the first quarter of fiscal year 2013 was
$156 million, or $0.42 per share, compared to non-GAAP net income of $222
million, or $0.55 per share for the same period a year ago.
"NetApp produced non-GAAP earnings per share
above and revenue in line with our prior guidance. In Q1, we
announced further innovations in Data ONTAP® 8.1 that will
enable customers to achieve an agile data infrastructure
environment to cope with their dynamic business requirements," said
Tom Georgens, president and CEO. "We continue to deliver on
multiple fronts, advancing our technology and partnerships. With
our best-of-breed partnering strategy and ongoing innovation-led
solutions, we enable our customers to scale their business without
NetApp's outlook for the second quarter of fiscal year 2013 is
based on current business expectations, market conditions, and
continued uncertainty in the macroeconomic environment.
- NetApp estimates revenue for the second quarter of fiscal year
2013 to be in the range of $1.5 billion to $1.6 billion.
- NetApp estimates GAAP earnings per share for the second quarter
of fiscal year 2013 to be approximately $0.23 to $0.28 per share.
NetApp estimates non-GAAP earnings per share for the second quarter
fiscal year 2013 to be approximately $0.45 to $0.50 per share.
- NetApp estimates that the share count for the second quarter of
fiscal year 2013 will decrease to approximately 370 million shares,
and will include an estimated 700 thousand shares from the
Company's outstanding convertible notes. 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.
Fundamental to NetApp's growth strategy is a commitment to
innovation leadership across all facets of the storage industry
with a goal to help propel its customers' and partners' business
In its first quarter of fiscal year 2013, this focus on innovation
spanned across NetApp® products, solutions, technologies, and
its culture. NetApp strengthened its reputation as an innovation
leader with the latest offering of Data ONTAP, the #1 storage
operating system. Data ONTAP provides the foundation for customers
who require an agile data infrastructure to thrive in today's
always-on global economy. Additionally, NetApp unveiled innovative
new products, technologies, and programs that enable further
penetration into the data center, help customers of all sizes
capitalize on data growth to fuel their success and help channel
partners expand their businesses. NetApp also continued to
strengthen its relationship with industry leaders like Cisco and
Microsoft. Finally, NetApp once again was recognized around the
world for its culture, which continues to provide competitive
differentiation that makes NetApp a preferred company to do
business with for both customers and partners.
Highlights for the quarter include the
Agile Data Infrastructure Makes IT
Intelligent, Immortal, and Infinite
- NetApp, in collaboration with its partners, is transforming how
customers architect and manage their data storage infrastructures
differently to be more agile in order to fuel business success.
With the latest release of Data ONTAP, NetApp is helping IT
departments more effectively respond to changing business
requirements, maintain nondisruptive operations, and grow their
businesses. Data ONTAP 8.1.1 is another milestone in NetApp's
innovation agenda that is the basis for delivering new approaches
to managing data for business impact.
Midsize Business Customers Accelerate
Growth and Leverage the Cloud with NetApp
- NetApp unveiled the new FAS2220, the latest member of its
entry-level product portfolio which will provide midsize customers
with innovative new technologies and increased value, enabling
customers to start right, keep it simple, and grow smart. The
FAS2220 builds on the momentum and success of the recently
introduced FAS2240. Additionally, NetApp introduced an expanding
ecosystem of value-added reseller partners to provide midsize
businesses with cloud backup and disaster recovery services built
on NetApp solutions, along with new channel enablement programs
designed to help partners grow their businesses.
FlexPod Momentum Continues with
Premium Partner Framework
- Cisco and NetApp launched a global channel initiative to
accelerate market momentum of the FlexPod converged infrastructure
solution that to date has almost 1,300 customers. The new FlexPod
Premium Partner Framework will reward FlexPod channel partners for
investing in sales capabilities and services practices. The new
framework is a testament to NetApp's continued focus on enabling
its partners' success as it will deliver increased differentiation,
streamline multi-vendor interactions, and enhance
Customers Gain Greater Business Value
from Big Data with NetApp Solutions
- NetApp and Hortonworks announced a joint development project to
make Apache Hadoop solutions more enterprise ready, helping
customers simplify access to their data and gain deeper business
insights to make the right decisions. NetApp also unveiled the
NetApp Open Solution for Hadoop Rack, offering customers greater
choice and flexibility to deploy Hadoop in the enterprise. Finally,
NetApp introduced enhanced data protection and simplified
management capabilities to help customers accelerate their big data
innovation on the NetApp E-Series platform.
Awards and Milestones
- Serving customer needs earns NetApp the Microsoft
Private Cloud Partner of the Year Award for 2012. NetApp
is focused on delivering innovative solutions that address customer
challenges and help partners fuel their businesses. This
recognition from Microsoft reinforces NetApp's long-standing
commitment to storage and storage management solutions for
Microsoft environments that enable organizations to reduce costs,
increase agility, improve efficiency, and utilize proven
- NetApp continues to earn recognition as a great place
to work. Built on a culture of innovation committed to
partner and customer success, NetApp was ranked on several
different "Best Places to Work" lists around the world. Rankings
included #2 in Australia, #2 in Europe, #3 in Canada, #5 in the
United Kingdom, #19 in India, and several local awards within the
- NetApp positioned in Leaders quadrant.
Gartner, Inc., placed NetApp in the Leaders quadrant for storage
resource management and SAN management software. Gartner asserted
that vendors in the Leaders quadrant "have the highest combined
measures of ability to execute and completeness of
Webcast and Conference Call
The NetApp first quarter of fiscal year 2013 results conference
call will be broadcast live on the Internet at investors.netapp.com on
Wednesday, August 15, 2012, at 2:30 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 4:30 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.
NetApp, the NetApp logo, Go further, faster,
Data ONTAP, and FlexPod are trademarks of NetApp, Inc. All other
marks are the property of their respective owners.
"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 forecasts for the second quarter of fiscal
year 2013 and expected benefits our customers may realize from our
products and partnerships, all of which involve risk and
uncertainty. Actual results may differ materially from our
statements and projections for a variety of reasons, including
general economic and market conditions and matters specific to our
business, such as customer demand for and acceptance of our
products and services. These and other equally important factors
are described in reports and documents we file 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, or otherwise.
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,
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, 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
Gartner, Inc., Magic Quadrant for Storage
Resource Management and SAN Management Software, Valdis Filks, Gene
Ruth, March 27, 2012.