Network Appliance Announces Preliminary First Quarter Fiscal Year 2008 Results
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Sunnyvale, Calif. - August 2, 2007 --
Network Appliance, Inc. (NASDAQ: NTAP), the leader in advanced
networked storage solutions, today announced preliminary results
for the first quarter of FY2008. Revenues are expected to be in the
range of $684 to $688 million, down approximately 14% to 15%
sequentially from the fourth quarter of FY2007 and up approximately
10% to 11% over the same quarter one year ago. GAAP net income per
share is expected to be in the range of $0.08 to $0.09 and
non-GAAP1 net income per share is expected to be in the
range of $0.19 to $0.20.
These preliminary results are below the
company's previously stated targets issued on May 23, 2007 for a
sequential revenue decrease of 6% to 7%, which equates to
approximately $745 to $753 million in revenue, and for GAAP net
income per share of $0.14 and $0.15, and non-GAAP net income per
share of $0.24 to $0.25. Network Appliance will host a conference
call this afternoon to discuss these preliminary results. The final
results of the first quarter of fiscal year 2008 will be announced
on August 15, 2007, after the close of market.
"We are disappointed with our Q1 results. We
believe our performance was impacted by some continued softness in
enterprise storage spending, most notably in our existing customer
accounts in the U.S. and parts of Europe," said Dan Warmenhoven,
CEO of Network Appliance. "However, these same enterprise customers
who have slowed their spending tell us that our value proposition
remains the best in the industry and we did not see any decline in
our competitive win rates."
Webcast and Conference Call
The NetApp® preliminary results conference call will be
broadcast live via the Internet at
http://investors.netapp.com on Thursday, August 2, at
2:00 p.m. Pacific time. This press release and any other
information related to the call will also be posted on the Website
at that location.
The conference call will also be available
live in a listen-only format at (800) 599-9829 in the United States
and (617) 847-8703 outside the United States. The pass code for
both numbers is 84263943.
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 16526483. The Webcast replay will be posted on
our Website for at least one year.
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 simplify data management. Information about Network
Appliance™ solutions and services is available at
"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 the statements related to the final
financial results that we expect to report for our first quarter of fiscal 2008. 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
fact that final results for our first quarter of fiscal 2008 could
vary materially because of any accounting adjustments made during
our quarterly close. We disclaim any obligation to update
information contained in these forward-looking statements whether
as a result of new information, future events, or otherwise.
1 Non-GAAP results exclude
amortization of intangible assets, in-process research and
development, stock compensation, other acquisition-related cost,
restructuring charges/recoveries, gain/loss on sales of assets and
investments, certain other nonrecurring events, and the related
effects on income taxes as well as certain discrete GAAP provisions
for income tax matters recognized ratably for non-GAAP
Network Appliance 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 financial measures exclude amortization
of intangible assets, in-process research and development, stock
compensation, other acquisition-related cost, restructuring
charges/recoveries, gain/loss on sales of assets and investments,
certain other nonrecurring events, 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.
Network Appliance, Inc.
Ph: (408) 822-3974
Network Appliance, Inc.
Ph: (919) 476-5750
Network Appliance, Inc.
Ph: (408) 822-6428