Network Appliance Announces Results for First Quarter Fiscal Year 2005
Sunnyvale, Calif. - August 17, 2004 --
Network Appliance, Inc. (NASDAQ: NTAP), the leader in advanced
networked storage solutions, today reported results for the first
quarter of fiscal year 2005. Revenues for the first fiscal quarter
were $358.4 million, an increase of 38% compared to revenues of
$260.5 million for the same period a year ago and a 6% increase
compared to $337.0 million in the prior quarter.
For the first fiscal quarter, GAAP net income increased 73% to
$46.9 million, or $0.13 per share(1) compared to GAAP net income of
$27.1 million, or $0.08 per share for the same period in the prior
year. Pro forma(2) net income for the first fiscal quarter
increased 73% to $49.9 million, or $0.13 per share, compared to pro
forma net income of $28.7 million, or $0.08 per share for the same
period a year ago.
"NetApp demonstrated exceptional execution, a strong balance sheet,
and continued cash generation during the quarter. We continue to
drive our solutions deeper into our customers' data centers and
mission-critical areas to solve significant issues around business
continuity, regulatory compliance, and high data availability,"
said Dan Warmenhoven, CEO of Network Appliance. "Our focus is on
expanding our market share and our results demonstrate that the
market is continuing to move toward us."
Throughout the first quarter of fiscal year 2005, Network Appliance
reinforced its leadership position by deploying new tier-one
storage solutions, expanding partnerships, and enhancing its
storage grid architecture. Customers deploying NetApp during the
quarter for a variety of database, collaborative, and other data
center and mission-critical applications included Audi AG, Canon,
Catholic Healthcare West, China Everbright Bank, Ciena, City of
Concord, ConocoPhillips, Fujitsu LTD, Gap Inc., GE Healthcare,
Hearst Corporation, ING BHF Bank, Pixar, Progress Energy, Qualcomm,
Sprint, Telstra, and University of Georgia. All levels of
enterprise customers have chosen to deploy NetApp for a variety of
reasons-reduced complexity, a low total cost of ownership (TCO),
and advanced management capabilities made possible through Data
ONTAP™ and a range of additional storage software packages
that unleash the value of enterprise data.
On the partners front, NetApp unveiled several new solution
enhancements and partner offerings with McData, Ontrack Data
Recovery, Oracle, Secure Computing, Symantec, Trend Micro, and
VERITAS to address a variety of data concerns, including e-mail
recovery, unified storage, and security issues facing enterprise
For storage grid architectures, the company continued to set the
pace for the rest of the industry in iSCSI and IP SAN (storage area
network), with more than 700 real-world production deployments to
date, and reinforced its leadership in other storage application
areas such as data protection/recovery, disk-based nearline
storage, and database storage. In database storage in particular,
NetApp demonstrated its prowess with large Oracle® deployments
at Universal Tax Systems and the South China Morning Post and
received a prestigious SAP Pinnacle Award for innovation around
storage for SAP environments. Finally, Network Appliance also
debuted its new midrange unified storage models, the FAS920 and
FAS920c. Designed to provide affordable enterprise-class
performance, reliability and advanced data management features for
midrange applications, the FAS920 can power applications in Fibre
Channel and iSCSI SANs and network-attached storage (NAS)
In corporate news, Network Appliance recently announced that it is
the recipient of a Job Development Investment Grant (JDIG) from the
governor of North Carolina to assist in any expansion of newly
acquired NetApp offices in Research Triangle Park, North Carolina.
NetApp also added two new members to its board of directors: Mark
Leslie and George Shaheen.
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, stock compensation, net gain on investments,
and the related effects on income taxes.
Conference Call Information
- The NetApp quarterly results conference call
will be broadcast live via the Internet at
http://investors.netapp.com/ on Tuesday, August
17, 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 (866) 800-8649 in the
United States and (617) 614-2703 outside the United States. The
passcode for both numbers is 19115940.
- A replay will be available for 72 hours
following completion of the live call by dialing (888) 286-8010 in
the United States and (617) 801-6888 outside the United States,
replay code 62837719.
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.
"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 market and marketshare trends which
benefit the Company, and continued customer acceptance of the
Company's products. 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 10-K and 10-Q.