Welcome!

News Feed Item

NetApp Reports Fourth Quarter and Fiscal Year 2014 Results

Achieves Fourth Quarter and Full Fiscal Year Non-GAAP Earnings per Share Growth of 22% Year Over Year

SUNNYVALE, CA -- (Marketwired) -- 05/21/14 -- NetApp (NASDAQ: NTAP)

  • Net revenues for Q4 of $1.649 billion; $6.325 billion for fiscal year 2014
  • Branded revenue for fiscal year 2014 grew 4% year over year
  • Cash from operations for fiscal year 2014 of $1.350 billion; free cash flow 18% of revenue

NetApp (NASDAQ: NTAP) today reported financial results for the fourth quarter and fiscal year 2014, ended April 25, 2014.

Fourth Quarter Financial Results
Net revenues for the fourth quarter of fiscal year 2014 were $1.649 billion. GAAP net income for the fourth quarter of fiscal year 2014 was $197 million, or $0.59 per share,(1) compared to GAAP net income of $174 million, or $0.47 per share, for the comparable period of the prior year. Non-GAAP net income for the fourth quarter of fiscal year 2014 was $284 million, or $0.84 per share,(2) compared to non-GAAP net income of $253 million, or $0.69 per share, for the comparable period of the prior year.

Fiscal Year 2014 Financial Results
Net revenues for fiscal year 2014 were $6.325 billion. GAAP net income for fiscal year 2014 was $638 million, or $1.83 per share,(1) compared to GAAP net income of $505 million, or $1.37 per share, for the comparable period of the prior year. Non-GAAP net income for fiscal year 2014 was $968 million, or $2.78 per share,(2) compared to non-GAAP net income of $841 million, or $2.28 per share, for the comparable period of the prior year.

Cash, Cash Equivalents, and Investments
NetApp ended fiscal year 2014 with $5.003 billion of total cash, cash equivalents, and investments and generated $1.350 billion in cash from operations. During fiscal year 2014, the Company returned $2.084 billion to shareholders through share repurchases and cash dividends.

The Company increased the next dividend to $0.165 per share to be paid on July 22, 2014 to shareholders of record as of the close of business on July 10, 2014.

"NetApp saw market share gains and delivered a solid operational performance in fiscal year 2014, highlighted by margin expansion and strong cash generation," said Tom Georgens, Chairman and CEO. "With solutions like clustered Data ONTAP, our broad flash portfolio and differentiated approach to the cloud, customers are solving the challenges of today, with innovative solutions that pave the way for the future."

Q1 Fiscal Year 2015 Outlook
The Company provides the following financial guidance for the first quarter of fiscal year 2015:

  • Net revenues are expected to be in the range of $1.420 billion to $1.520 billion
  • GAAP earnings per share is expected to be in the range of $0.32 to $0.37 per share
  • Non-GAAP earnings per share is expected to be in the range of $0.53 to $0.58 per share

Business Highlights
In its fourth quarter of fiscal year 2014, NetApp continued to help global enterprises achieve success with one of the industry's broadest portfolios of flash-accelerated, cloud-integrated storage and data management solutions. Its industry-leading enterprise storage systems and software meet customer needs across a wide range of application workloads. Highlights include:

  • NetApp Introduces Unified Scale-Out Storage Systems for the Hybrid Cloud Era. The new FAS8000 series unified storage systems are NetApp's most powerful and feature-rich scale-out storage systems with superior flexibility to simplify complex upgrades as IT needs change.
  • NetApp Introduces FlexArray Virtualization Software. With new FlexArray virtualization software, NetApp® V-Series becomes a software option that can be licensed on the FAS8000 to virtualize and manage multivendor data storage platforms, paving the way for software-defined storage.
  • NetApp Announces the Latest Release of Clustered Data ONTAP®. The latest release of the clustered Data ONTAP operating system, version 8.2.1, helps organizations seamlessly scale out operations and manage data consistently, without disruption across both private and public cloud environments.
  • NetApp Teams with SAP to Set New Record for World's Largest Data Warehouse. SAP announced that it teamed with partners, including NetApp, to generate a world record for the largest data warehouse. The NetApp E5460 storage system was chosen for its ability to handle large data volumes, enormous throughput requirements, consistent high performance and availability demands, all at the same time.
  • NetApp Again Honored as a Channel Champion. CRN's 24th annual Channel Champions awards highlights vendor partners voted to be the best-of-the-best by the solutions providers for 2014. NetApp moved into the No. 2 position on this year's list in the Enterprise Network Storage category.

Webcast and Conference Call Information
NetApp will host a conference call to discuss these results today at 2:00 p.m. Pacific Time. To access the live webcast of this event, visit the NetApp Investor Relations website at investors.netapp.com. In addition, this press release and other information related to the call will be posted on the Investor Relations website. An audio replay will also be available on the website after 4:00 p.m. Pacific Time today.

Historical supplemental data tables, providing historical multi-period financial information, are also available on our Investor Relations website at investors.netapp.com.

About NetApp
NetApp creates innovative storage and data management solutions that deliver outstanding cost efficiency and accelerate business breakthroughs. Our commitment to living our core values and consistently being recognized as a great place to work around the world are fundamental to our long-term growth and success, as well as the success of our pathway partners and customers. Discover our 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 Q1 Fiscal Year 2015 Outlook section relating to the financial guidance for the first quarter of fiscal year 2015; the benefits to us and our customers of our products and services, including clustered Data ONTAP and our flash storage solutions. All of these forward-looking statements involve risk and uncertainty. Actual results may differ materially from these statements for a variety of reasons, including, without limitation, general economic and market conditions, changes in U.S. government spending, revenue seasonality, and matters specific to our business, such as customer demand for and acceptance of our products and services and changes in storage consumption models. 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, the NetApp logo, Go further, faster, and Data ONTAP are trademarks of NetApp, Inc. All other marks are the property of their respective owners.

(1)GAAP earnings per share is calculated using the diluted number of shares for all periods presented.

(2)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 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 periods presented. A detailed reconciliation of our non-GAAP to GAAP results can be found at http://investors.netapp.com.

NetApp Usage of Non-GAAP Financials
The Company refers to the non-GAAP financial measures 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 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 limitations and they should not solely be used to evaluate our Company without reference to their corresponding GAAP financial measures. As such, we provide both 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.


                                NETAPP, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In millions)
                                 (Unaudited)

                                               April 25, 2014 April 26, 2013
                                               -------------- --------------

ASSETS

Current assets:
  Cash, cash equivalents and investments       $      5,003.3 $      6,952.6
  Accounts receivable, net                              855.9          800.9
  Inventories                                           122.4          139.5
  Other current assets                                  489.7          525.2
                                               -------------- --------------
    Total current assets                              6,471.3        8,418.2

Property and equipment, net                           1,108.8        1,170.9
Goodwill and purchased intangible assets, net         1,109.6        1,168.7
Other non-current assets                                529.5          484.6
                                               -------------- --------------
      Total assets                             $      9,219.2 $     11,242.4
                                               ============== ==============


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                             $        247.0 $        259.7
  Accrued compensation and other current
   liabilities                                          793.8          749.8
  Current portion of long-term debt                         -        1,257.8
  Short-term deferred revenue                         1,653.8        1,563.3
                                               -------------- --------------
    Total current liabilities                         2,694.6        3,830.6

Long-term debt                                          995.5          994.6
Other long-term liabilities                             296.2          253.5
Long-term deferred revenue                            1,446.4        1,446.2
                                               -------------- --------------
    Total liabilities                                 5,432.7        6,524.9

Stockholders' equity                                  3,786.5        4,717.5
                                               -------------- --------------
      Total liabilities and stockholders'
       equity                                  $      9,219.2 $     11,242.4
                                               ============== ==============




                                NETAPP, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In millions, except per share amounts)
                                (Unaudited)

                                  Three Months Ended        Year Ended
                                 --------------------  --------------------
                                 April 25,  April 26,  April 25,  April 26,
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------

Revenues:
  Product                        $ 1,042.8  $ 1,137.8  $ 3,943.9  $ 4,092.3
  Software entitlements and
   maintenance                       227.5      227.0      914.8      893.5
  Service                            378.7      351.7    1,466.4    1,346.6
                                 ---------  ---------  ---------  ---------
    Net revenues                   1,649.0    1,716.5    6,325.1    6,332.4
                                 ---------  ---------  ---------  ---------

Cost of revenues:
  Cost of product                    453.2      517.9    1,777.1    1,959.9
  Cost of software entitlements
   and maintenance                     8.0        7.4       30.7       28.3
  Cost of service                    145.8      159.0      598.2      583.1
                                 ---------  ---------  ---------  ---------
  Total cost of revenues             607.0      684.3    2,406.0    2,571.3
                                 ---------  ---------  ---------  ---------
    Gross profit                   1,042.0    1,032.2    3,919.1    3,761.1
                                 ---------  ---------  ---------  ---------

Operating expenses:
  Sales and marketing                475.0      510.2    1,898.2    1,974.8
  Research and development           230.7      243.4      917.3      904.2
  General and administrative          73.7       74.2      281.0      272.6
  Restructuring and other
   charges                            38.8          -       88.3          -
  Acquisition-related expense            -          -          -        1.7
                                 ---------  ---------  ---------  ---------
    Total operating expenses         818.2      827.8    3,184.8    3,153.3
                                 ---------  ---------  ---------  ---------

Income from operations               223.8      204.4      734.3      607.8

Other income/(expense), net:
  Interest income                      8.5       10.1       34.9       42.2
  Interest expense                    (6.4)     (28.0)     (36.1)     (91.7)
  Other income, net                    0.7        2.4        7.6        8.3
                                 ---------  ---------  ---------  ---------
    Total other
     income/(expense), net             2.8      (15.5)       6.4      (41.2)
                                 ---------  ---------  ---------  ---------

Income before income taxes           226.6      188.9      740.7      566.6

Provision for income taxes            29.6       15.1      103.2       61.3
                                 ---------  ---------  ---------  ---------

Net income                       $   197.0  $   173.8  $   637.5  $   505.3
                                 =========  =========  =========  =========

Net income per share:
  Basic                          $    0.60  $    0.48  $    1.87  $    1.40
                                 =========  =========  =========  =========

  Diluted                        $    0.59  $    0.47  $    1.83  $    1.37
                                 =========  =========  =========  =========

Shares used in net income per
 share calculations:
  Basic                              330.2      358.6      340.3      361.5
                                 =========  =========  =========  =========

  Diluted                            336.4      368.2      347.9      368.0
                                 =========  =========  =========  =========

Cash dividends declared per
 share                           $    0.15  $       -  $    0.60  $       -
                                 =========  =========  =========  =========



                                NETAPP, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                               (In millions)
                                (Unaudited)


                                  Three Months Ended        Year Ended
                                 --------------------  --------------------
                                 April 25,  April 26,  April 25,  April 26,
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------

Cash flows from operating
 activities:
  Net income                     $   197.0  $   173.8  $   637.5  $   505.3
  Adjustments to reconcile net
   income to net cash provided
   by operating activities:
    Depreciation and
     amortization                     82.1       89.1      334.1      344.6
    Stock-based compensation          67.2       65.1      273.0      276.6
    Accretion of discount and
     issuance costs on debt            0.5       16.2        9.7       60.2
    Excess tax benefit from
     stock-based compensation        (19.1)     (19.9)     (52.5)     (72.9)
    Other, net                       (26.8)       2.3      (58.4)      (6.0)
  Changes in assets and
   liabilities, net of acquired
   businesses:
    Accounts receivable             (270.0)    (170.0)     (56.6)      23.1
    Inventories                       (4.3)      33.4       17.0       22.0
    Accounts payable                  57.7       41.1      (12.1)      25.1
    Accrued compensation and
     other current liabilities       126.8       88.6       32.3       53.5
    Deferred revenue                 133.6      135.4      106.6      198.1
    Changes in other operating
     assets and liabilities, net      24.8        0.5      119.0      (43.3)
                                 ---------  ---------  ---------  ---------
      Net cash provided by
       operating activities          369.5      455.6    1,349.6    1,386.3
                                 ---------  ---------  ---------  ---------
Cash flows from investing
 activities:
  Redemptions (purchases) of
   investments, net                  212.3      (27.1)     975.0      177.0
  Purchases of property and
   equipment                         (56.0)     (63.6)    (221.4)    (303.3)
  Acquisitions of businesses,
   net of cash acquired                  -      (17.1)         -     (106.5)
  Other investing activities,
   net                                 4.2        1.2        6.8        4.2
                                 ---------  ---------  ---------  ---------
    Net cash provided by (used
     in) investing activities        160.5     (106.6)     760.4     (228.6)
                                 ---------  ---------  ---------  ---------
Cash flows from financing
 activities:
  Issuance of common stock             9.6       15.1      201.4      110.6
  Repurchase of common stock and
   forward contract                 (374.5)    (180.0)  (1,881.5)    (590.0)
  Excess tax benefit from stock-
   based compensation                 19.1       19.9       52.5       72.9
  Repayment of debt                      -          -   (1,264.9)         -
  Issuance of long-term debt,
   net                                   -          -          -      987.3
  Dividends paid                     (49.2)         -     (202.3)         -
  Other financing activities,
   net                                (1.7)      (1.2)      (9.2)      (1.9)
                                 ---------  ---------  ---------  ---------
    Net cash provided by (used
     in) financing activities       (396.7)    (146.2)  (3,104.0)     578.9
                                 ---------  ---------  ---------  ---------

Effect of exchange rate changes
 on cash and cash equivalents          5.0       (7.4)       7.9       (9.3)

Net increase (decrease) in cash
 and cash equivalents                138.3      195.4     (986.1)   1,727.3
Cash and cash equivalents:
  Beginning of period              2,152.7    3,081.7    3,277.1    1,549.8
                                 ---------  ---------  ---------  ---------
  End of period                  $ 2,291.0  $ 3,277.1  $ 2,291.0  $ 3,277.1
                                 =========  =========  =========  =========




                           NETAPP, INC.
                         SUPPLEMENTAL DATA
  (In millions except net income per share, percentages, DSO and
                          Inventory Turns)
                            (Unaudited)


                          Q4 FY'14  Q3 FY'14  Q4 FY'13    FY 2014   FY 2013
                         --------- --------- ---------   --------- ---------
    Revenues
Product Revenue          $ 1,042.8 $ 1,015.0 $ 1,137.8   $ 3,943.9 $ 4,092.3
Software Entitlements &
 Maintenance Revenue
 (SEM)                       227.5     227.0     227.0       914.8     893.5
Service Revenue:             378.7     368.0     351.7     1,466.4   1,346.6
  Hardware Maintenance
   Support Contracts
   Revenue                   293.7     285.9     262.9     1,129.6     991.8
  Professional & Other
   Services Revenue           85.0      82.1      88.8       336.7     354.8
                         --------- --------- ---------   --------- ---------
    Net Revenues         $ 1,649.0 $ 1,610.0 $ 1,716.5   $ 6,325.1 $ 6,332.4

  Branded and OEM
   Revenues
                          Q4 FY'14  Q3 FY'14  Q4 FY'13    FY 2014   FY 2013
                         --------- --------- ---------   --------- ---------
Branded Revenue          $ 1,539.2 $ 1,452.7 $ 1,551.0   $ 5,740.4 $ 5,545.2
OEM Revenue                  109.8     157.3     165.5       584.7     787.2
                         --------- --------- ---------   --------- ---------
    Net Revenues         $ 1,649.0 $ 1,610.0 $ 1,716.5   $ 6,325.1 $ 6,332.4

Branded revenue includes revenue from all products and services sold
directly by us or our partners under the NetApp brand, including NetApp
branded E-Series products and solutions.
OEM revenue comprises revenue from the sale of our products by other
companies under their brands and includes revenue from IBM, Fujitsu, and
other E-Series OEM relationships.


Geographic Mix
                              % of Q4  % of Q3  % of Q4    % of FY  % of FY
                               FY'14    FY'14    FY'13       2014     2013
                              Revenue  Revenue  Revenue    Revenue  Revenue
                              -------  -------  -------    -------  -------
Americas*                          56%      52%      57%        56%      56%
    Americas Commercial            43%      43%      45%        43%      43%
    U.S. Public Sector             12%       9%      12%        12%      13%
EMEA                               31%      34%      30%        31%      30%
Asia Pacific                       13%      14%      13%        14%      13%

* Americas Commercial and USPS revenue for Q4 FY'13 is recast as a result of
  reporting certain healthcare revenue in Americas Commercial revenue that
  was previously included in U.S. Public Sector revenue. A reconciliation of
  this change is posted to our website at investors.netapp.com.


Pathways Mix
                              % of Q4  % of Q3  % of Q4    % of FY  % of FY
                               FY'14    FY'14    FY'13       2014     2013
                              Revenue  Revenue  Revenue    Revenue  Revenue
                              -------  -------  -------    -------  -------
Direct                             17%      17%      19%        18%      19%
Indirect                           83%      83%      81%        82%      81%

  Indirect revenues include those sold through value-added resellers, system
  integrators, OEMs and distributors.
  Direct revenues are those sold through our direct sales force. Direct /
  Indirect revenue mix reflects order fulfillment and not reflective of who
  is responsible for the customer relationship.


  Non-GAAP Gross Margins
                         Q4 FY'14  Q3 FY'14  Q4 FY'13     FY 2014   FY 2013
                         --------  --------  --------    --------  --------
Non-GAAP Gross Margin        64.4%     63.5%     61.3%       63.2%     60.7%
  Product                    58.0%     57.1%     55.8%       56.5%     53.6%
  Software Entitlements
   & Maintenance (SEM)       96.5%     96.6%     96.7%       96.6%     96.8%
  Service                    62.7%     60.8%     56.2%       60.5%     58.2%


  Non-GAAP Income from
   Operations, Income
   before Income Taxes &
   Effective Tax Rate
                         Q4 FY'14  Q3 FY'14  Q4 FY'13     FY 2014   FY 2013
                         --------  --------  --------    --------  --------
Non-GAAP Income from
 Operations              $  344.4  $  313.3  $  291.0    $1,154.7  $  971.9
  % of Net Revenue           20.9%     19.5%     17.0%       18.3%     15.3%
Non-GAAP Income before
 Income Taxes            $  347.2  $  316.2  $  291.7    $1,169.3  $  990.2
Non-GAAP Effective Tax
 Rate                        18.1%     17.6%     13.4%       17.2%     15.1%



  Non-GAAP Net Income
                         Q4 FY'14  Q3 FY'14  Q4 FY'13     FY 2014   FY 2013
                         --------  --------  --------    --------  --------
Non-GAAP Net Income      $  284.2  $  260.6  $  252.5    $  968.2  $  840.6
Weighted Average Common
 Shares Outstanding,
 Diluted                    336.4     346.2     368.2       347.9     368.0
Non-GAAP Net Income per
 Share, Diluted          $   0.84  $   0.75  $   0.69    $   2.78  $   2.28

  Included in the diluted weighted average common shares outstanding are 3.2
  million, 1.4 million and 1.1 million shares in Q4 FY'13, FY2014, FY2013,
  respectively, related to the impact of our convertible notes. The
  convertible notes matured in Q1 FY'14, and thus had no impact on any other
  period presented.


  Select Balance Sheet Items
                                                  Q4 FY'14 Q3 FY'14 Q4 FY'13
                                                  -------- -------- --------
Deferred Revenue                                  $3,100.2 $2,959.3 $3,009.5
DSO (days)                                              47       33       42
Inventory Turns                                         19       20       19

  Days sales outstanding (DSO) is defined as accounts receivable, net
  divided by net revenue, multiplied by the number of days in the quarter.
  Inventory turns is defined as annualized non-GAAP cost of revenues divided
  by net inventories.


  Select Cash Flow
   Statement Items
                         Q4 FY'14  Q3 FY'14  Q4 FY'13     FY 2014   FY 2013
                         --------  --------  --------    --------  --------
Net Cash Provided by
 Operating Activities    $  369.5  $  331.8  $  455.6    $1,349.6  $1,386.3
Purchases of Property
 and Equipment           $   56.0  $   57.9  $   63.6    $  221.4  $  303.3
Free Cash Flow           $  313.5  $  273.9  $  392.0    $1,128.2  $1,083.0
Free Cash Flow as % of
 Total Revenue               19.0%     17.0%     22.8%       17.8%     17.1%

  Free cash flow is a non-GAAP measure and is defined as net cash provided
  by operating activities less purchases of property and equipment.
  Some items may not add or recalculate due to rounding.




                                NETAPP, INC.
                     RECONCILIATION OF NON-GAAP TO GAAP
                      FINANCIAL STATEMENT INFORMATION
             (In millions, except net income per share amounts)
                                (Unaudited)

                            Three Months Ended              Year Ended
                    ---------------------------------  --------------------
                    April 25,  January 24,  April 26,  April 25,  April 26,
                       2014        2014        2013       2014       2013
                    ---------  -----------  ---------  ---------  ---------

NET INCOME          $   197.0  $     192.1  $   173.8  $   637.5  $   505.3
Adjustments:
  Amortization of
   intangible
   assets                14.6         14.7       21.5       59.1       85.8
  Stock-based
   compensation          67.2         71.9       65.1      273.0      276.6
  Restructuring and
   other charges         38.8            -          -       88.3          -
  Acquisition-
   related expense          -            -          -          -        1.7
  Non-cash interest
   expense                  -            -       16.2        8.2       60.2
  Gain on
   investments              -            -          -          -       (0.7)
  Income tax effect
   of Non-GAAP
   adjustments          (33.4)       (18.1)     (24.1)     (97.9)     (88.3)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP NET INCOME $   284.2  $     260.6  $   252.5  $   968.2  $   840.6
                    =========  ===========  =========  =========  =========

COST OF REVENUES    $   607.0  $     607.7  $   684.3  $ 2,406.0  $ 2,571.3
Adjustments:
  Amortization of
   intangible
   assets               (14.3)       (14.2)     (14.1)     (57.1)     (55.9)
  Stock-based
   compensation          (5.3)        (6.1)      (5.8)     (22.3)     (25.5)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP COST OF
 REVENUES           $   587.4  $     587.4  $   664.4  $ 2,326.6  $ 2,489.9
                    =========  ===========  =========  =========  =========

COST OF PRODUCT
 REVENUES           $   453.2  $     450.7  $   517.9  $ 1,777.1  $ 1,959.9
Adjustments:
  Amortization of
   intangible
   assets               (13.7)       (13.6)     (13.5)     (54.8)     (55.3)
  Stock-based
   compensation          (1.4)        (1.5)      (1.4)      (5.6)      (6.1)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP COST OF
 PRODUCT REVENUES   $   438.1  $     435.6  $   503.0  $ 1,716.7  $ 1,898.5
                    =========  ===========  =========  =========  =========

COST OF SERVICE
 REVENUES           $   145.8  $     149.3  $   159.0  $   598.2  $   583.1
Adjustments:
  Amortization of
   intangible
   assets                (0.6)        (0.6)      (4.4)      (2.3)     (19.4)
  Stock-based
   compensation          (3.9)        (4.6)      (0.6)     (16.7)      (0.6)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP COST OF
 SERVICE REVENUES   $   141.3  $     144.1  $   154.0  $   579.2  $   563.1
                    =========  ===========  =========  =========  =========

GROSS PROFIT        $ 1,042.0  $   1,002.3  $ 1,032.2  $ 3,919.1  $ 3,761.1
Adjustments:
  Amortization of
   intangible
   assets                14.3         14.2       14.1       57.1       55.9
  Stock-based
   compensation           5.3          6.1        5.8       22.3       25.5
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP GROSS
 PROFIT             $ 1,061.6  $   1,022.6  $ 1,052.1  $ 3,998.5  $ 3,842.5
                    =========  ===========  =========  =========  =========

SALES AND MARKETING
 EXPENSES           $   475.0  $     475.9  $   510.2  $ 1,898.2  $ 1,974.8
Adjustments:
  Amortization of
   intangible
   assets                (0.3)        (0.5)      (7.4)      (2.0)     (29.8)
  Stock-based
   compensation         (30.4)       (33.0)     (30.4)    (125.0)    (132.2)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP SALES AND
 MARKETING EXPENSES $   444.3  $     442.4  $   472.4  $ 1,771.2  $ 1,812.8
                    =========  ===========  =========  =========  =========

RESEARCH AND
 DEVELOPMENT
 EXPENSES           $   230.7  $     230.3  $   243.4  $   917.3  $   904.2
Adjustment:
  Amortization of
   intangible
   assets                   -            -          -          -       (0.1)
  Stock-based
   compensation         (21.1)       (23.6)     (20.3)     (87.7)     (84.1)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP RESEARCH
 AND DEVELOPMENT
 EXPENSES           $   209.6  $     206.7  $   223.1  $   829.6  $   820.0
                    =========  ===========  =========  =========  =========

GENERAL AND
 ADMINISTRATIVE
 EXPENSES           $    73.7  $      69.4  $    74.2  $   281.0  $   272.6
Adjustment:
  Stock-based
   compensation         (10.4)        (9.2)      (8.6)     (38.0)     (34.8)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP GENERAL
 AND ADMINISTRATIVE
 EXPENSES           $    63.3  $      60.2  $    65.6  $   243.0  $   237.8
                    =========  ===========  =========  =========  =========

RESTRUCTURING AND
 OTHER CHARGES      $    38.8  $         -  $       -  $    88.3  $       -
Adjustment:
  Restructuring and
   other charges        (38.8)           -          -      (88.3)         -
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP
 RESTRUCTURING AND
 OTHER CHARGES      $       -  $         -  $       -  $       -  $       -
                    =========  ===========  =========  =========  =========

ACQUISITION-RELATED
 EXPENSE            $       -  $         -  $       -  $       -  $     1.7
Adjustment:
  Acquisition-
   related expense          -            -          -          -       (1.7)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP
 ACQUISITION-
 RELATED EXPENSE    $       -  $         -  $       -  $       -  $       -
                    =========  ===========  =========  =========  =========

OPERATING EXPENSES  $   818.2  $     775.6  $   827.8  $ 3,184.8  $ 3,153.3
Adjustments:
  Amortization of
   intangible
   assets                (0.3)        (0.5)      (7.4)      (2.0)     (29.9)
  Stock-based
   compensation         (61.9)       (65.8)     (59.3)    (250.7)    (251.1)
  Restructuring and
   other charges        (38.8)           -          -      (88.3)         -
  Acquisition-
   related expense          -            -          -          -       (1.7)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP OPERATING
 EXPENSES           $   717.2  $     709.3  $   761.1  $ 2,843.8  $ 2,870.6
                    =========  ===========  =========  =========  =========

INCOME FROM
 OPERATIONS         $   223.8  $     226.7  $   204.4  $   734.3  $   607.8
Adjustments:
  Amortization of
   intangible
   assets                14.6         14.7       21.5       59.1       85.8
  Stock-based
   compensation          67.2         71.9       65.1      273.0      276.6
  Restructuring and
   other charges         38.8            -          -       88.3          -
  Acquisition-
   related expense          -            -          -          -        1.7
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP INCOME
 FROM OPERATIONS    $   344.4  $     313.3  $   291.0  $ 1,154.7  $   971.9
                    =========  ===========  =========  =========  =========

TOTAL OTHER INCOME
 (EXPENSE), NET     $     2.8  $       2.9  $   (15.5) $     6.4  $   (41.2)
Adjustments:
  Non-cash interest
   expense                  -            -       16.2        8.2       60.2
  Gain on
   investments              -            -          -          -       (0.7)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP TOTAL
 OTHER INCOME, NET  $     2.8  $       2.9  $     0.7  $    14.6  $    18.3
                    =========  ===========  =========  =========  =========

INCOME BEFORE
 INCOME TAXES       $   226.6  $     229.6  $   188.9  $   740.7  $   566.6
Adjustments:
  Amortization of
   intangible
   assets                14.6         14.7       21.5       59.1       85.8
  Stock-based
   compensation          67.2         71.9       65.1      273.0      276.6
  Restructuring and
   other charges         38.8            -          -       88.3          -
  Acquisition-
   related expense          -            -          -          -        1.7
  Non-cash interest
   expense                  -            -       16.2        8.2       60.2
  Gain on
   investments              -            -          -          -       (0.7)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP INCOME
 BEFORE INCOME
 TAXES              $   347.2  $     316.2  $   291.7  $ 1,169.3  $   990.2
                    =========  ===========  =========  =========  =========

PROVISION FOR
 INCOME TAXES       $    29.6  $      37.5  $    15.1  $   103.2  $    61.3
Adjustment:
  Income tax effect
   of Non-GAAP
   adjustments           33.4         18.1       24.1       97.9       88.3
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP PROVISION
 FOR INCOME TAXES   $    63.0  $      55.6  $    39.2  $   201.1  $   149.6
                    =========  ===========  =========  =========  =========

NET INCOME PER
 SHARE              $    0.59  $      0.55  $    0.47  $    1.83  $    1.37
Adjustments:
  Amortization of
   intangible
   assets                0.04         0.04       0.06       0.17       0.23
  Stock-based
   compensation          0.20         0.21       0.18       0.79       0.75
  Restructuring and
   other charges         0.11            -          -       0.25          -
  Acquisition-
   related expense          -            -          -          -          -
  Non-cash interest
   expense                  -            -       0.04       0.02       0.16
  Gain on
   investments              -            -          -          -          -
  Income tax effect
   of Non-GAAP
   adjustments          (0.10)       (0.05)     (0.07)     (0.28)     (0.24)
                    ---------  -----------  ---------  ---------  ---------
NON-GAAP NET INCOME
 PER SHARE          $    0.84  $      0.75  $    0.69  $    2.78  $    2.28
                    =========  ===========  =========  =========  =========


Some items may not add or recalculate due to rounding.




                                NETAPP, INC.
                 RECONCILIATION OF NON GAAP GUIDANCE TO GAAP
                       EXPRESSED AS EARNINGS PER SHARE
                             FIRST QUARTER 2015
                                 (Unaudited)

                                                               First Quarter
                                                                    2015
                                                               -------------

Non-GAAP Guidance - Net Income Per Share                       $0.53 - $0.58


Adjustments of Specific Items to
  Net Income Per Share for the First
  Quarter 2015:

  Amortization of intangible assets                                (0.04)
  Stock-based compensation expense                                 (0.22)
  Income tax effect                                                 0.05
                                                               -------------
Total Adjustments                                                  (0.21)

GAAP Guidance - Net Income Per Share                           $0.32 - $0.37


Press Contact:
Jeremiah Glodoveza
NetApp
408-822-4567
Email Contact


Investor Contact:
Kris Newton
NetApp
408-822-3312
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.