Network Appliance Reiterates Quarterly and Annual Guidance
Sunnyvale, Calif. - July 22, 2004 --
Network Appliance, Inc. (NASDAQ: NTAP) has announced that it
expects revenue and earnings for the first quarter and full fiscal
year 2005 to be within the range discussed on its fiscal year 2004
earnings conference call conducted on May 18, 2004. At that time,
NetApp stated it expects first quarter revenues to grow
sequentially by 4% to 6% from the fiscal fourth quarter. This
projection reflects year over year growth rates of 35% to 37%.
First quarter non-GAAP earnings are expected to be in the range of
12 cents to 13 cents per share, with GAAP earnings modestly below
these levels. For full fiscal year 2005, Network Appliance expects
annual revenue to grow by 30% to 32%, and expects non-GAAP earnings
of between 52 cents and 54 cents per share.
Network Appliance reconfirmed guidance today, prior to upcoming
discussions with shareholders regarding its proxy statement, which
was filed on July 15, 2004. Due to the timing of the proxy
statement filing, NetApp felt it would be most prudent, in order to
comply with Regulation FD, to publicly reiterate prior guidance in
the event that questions about current business are raised during
the discussions with shareholders. Network Appliance does not
intend to provide such updates in the future, but is doing so today
due entirely to the timing of meetings regarding the proxy
NetApp expects to release first fiscal quarter earnings on August
17, 2004 after market hours. Management will review first quarter
results and discuss the business outlook for the second quarter
during a webcast conference call at 2:00 p.m. Pacific time. The
webcast will be available on the NetApp website at
http://investors.netapp.com/ and dial-in information
will be provided in early August.
This press release contains forward-looking statements within the
meeting of the Private Securities Litigation Reform Act of 1995
regarding expected first quarter and full fiscal year 2005
revenues, and GAAP and non-GAAP earnings per share. 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 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 Form 10-K and any subsequent Forms 10-Q or
Non-GAAP guidance for all periods presented exclude amortization of
intangible assets, stock compensation, and the related effects on
income taxes. The impact of these items on GAAP earnings is
estimated to be approximately -$0.008 per share in the first
quarter and -$0.02 to -$0.03 per share for the full year. Future
impacts of in process research and development, restructuring
charges, net gain or loss on investments, gain on sale of
intangible assets, and the related effects on income taxes are also
excluded and cannot be estimated at this time.
The information contained in this press release is accurate only as
of the date of issuance. Network Appliance disclaims any duty to
update the information contained in this press release.
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.
Network Appliance, Inc.
Network Appliance, Inc.