Source: NetApp, Inc.
NetApp Announces Results for Fourth Quarter and Fiscal Year 2011
Company Reports Q4 FY'11 Revenues of $1.428 Billion; Fiscal Year Revenues of $5.123 Billion
SUNNYVALE, CA--(Marketwire - May 25, 2011) - NetApp (NASDAQ: NTAP) today reported results for the fourth quarter and fiscal year 2011, which ended April 29, 2011. Revenues for the fourth quarter of fiscal year 2011 totaled $1.428 billion compared to revenues of $1.172 billion for the same period one year ago.
For the fourth quarter of fiscal year 2011, GAAP net income was $160.6 million, or $0.40 per share(1) compared to GAAP net income of $145.1 million, or $0.40 per share for the same period a year ago. Non-GAAP net income for the fourth quarter of fiscal year 2011 was $236.7 million, or $0.59 per share(2), compared to non-GAAP net income of $183.1 million, or $0.50 per share for the same period a year ago.
Revenues for fiscal year 2011 totaled $5.123 billion compared to revenues of $3.931 billion for fiscal year 2010. GAAP net income for fiscal year 2011 was $673.1 million, or $1.71 per share, compared to GAAP net income of $400.4 million, or $1.13 per share for fiscal year 2010. Non-GAAP net income for fiscal year 2011 totaled $865.7 million, or $2.20 per share, compared to non-GAAP net income of $533.0 million, or $1.51 per share for fiscal year 2010.
"NetApp delivered 30% revenue growth, 38% growth in cash from operations and over $1B in non-GAAP operating profit during fiscal 2011. We achieved the largest market share gains in our history and closed a record number of million dollar deals, demonstrating our momentum in the market as enterprise customers increasingly choose NetApp as their vendor of choice for storage virtualization and cloud deployments," said Tom Georgens, president and CEO. "Together with our partners we create unmatched IT efficiency and flexibility with innovative solutions that solve the biggest and hardest problems in accessing and protecting business-critical information."
In the fourth quarter of fiscal year 2011, NetApp adopted mandatory new accounting standards related to revenue recognition for transactions originating or materially modified in fiscal year 2011. We implemented these standards retrospectively to the beginning of fiscal year 2011; therefore the full year and previously reported quarterly results for fiscal 2011 have been adjusted to reflect the adoption of these new standards. An analysis of the impact of the new accounting standards can be found on page 3 of the Supplemental Commentary and the adjusted Statements of Operations for prior quarters can be found on page 14 of the Supplemental Commentary and on our website at investors.netapp.com.
Outlook
- NetApp estimates revenue for the first quarter of fiscal year 2012 to be approximately $1.500 billion, plus or minus 3%, which equates to approximately 2% to 8% sequential revenue growth and approximately 26% to 34% year over year revenue growth.
- NetApp estimates that first quarter fiscal year 2012 GAAP earnings per share will be approximately $0.31 to $0.36 per share. NetApp estimates that first quarter fiscal year 2012 non-GAAP earnings per share will be approximately $0.52 to $0.57 per share.
- NetApp estimates that share count for the first quarter of fiscal year 2012 will increase to approximately 410 million shares, including an estimated 16 million shares from the company's outstanding convertible notes(3) and 9 million shares from outstanding warrants. Share count does not include the company's outstanding note hedges that are expected to offset 80% of the dilution from the convertible notes at maturity or conversion.
- The above guidance reflects the new accounting standards related to revenue recognition.
Business Highlights
In its fourth quarter of fiscal year 2011, NetApp continued to demonstrate
its commitment to providing customers and partners with the solutions and
technologies that are foundational to their success. During the quarter,
NetApp entered into a definitive agreement to purchase the Engenio external
storage systems business from LSI Corporation to enable NetApp to expand
its addressable market and generate greater revenue growth with a strategic
storage platform intended to capitalize on new high-growth opportunities
for big-bandwidth and high-performance applications. Additionally, NetApp
continues to enable enterprises to make the transition to a flexible and
shared IT infrastructure and once again received numerous awards honoring
its product innovation, executive leadership, and culture. Highlights
included the following:
NetApp to Address Emerging, Fast-Growing Market Segments for Big-Bandwidth and High-Performance Applications
- The purchase of the Engenio external storage systems business provides NetApp with a storage platform that is complementary to its existing NetApp® Data ONTAP® platform and is targeted to address emerging customer needs around big-bandwidth and high-performance applications such as full-motion video and digital video surveillance. The purchase will help enable NetApp to capitalize on the expected growth within this emerging market and help it further diversify its channels to market through a proven, mature OEM business.
NetApp Enables Transition to a Shared IT Infrastructure
- NetApp helps Suncorp Group spark innovation on shared IT infrastructure. The Suncorp Group, a provider of diversified financial services and one of Australia's largest companies, recently made a strategic bet on storage to fuel its growth and transformation as a company. With NetApp as its storage foundation, Suncorp migrated 80% of its entire IT environment to a shared infrastructure, creating a culture of innovation throughout the company and enabling it to scale rapidly.
- NetApp enables leading service providers to deliver innovative cloud services. Expanding on its strategy to broaden and leverage its diverse pathways to reach customers, NetApp is collaborating with many of its leading service provider partners to deliver a wide range of innovative cloud services that help customers make the transition to a flexible and efficient shared IT infrastructure. These service providers are part of the industry's first NetApp Partner Program for Service Providers, which helps partners increase their business and take advantage of the market shift to cloud services.
Milestones and Awards
- NetApp named one of the Best Places to Work around the globe. NetApp continued to gain recognition as a "best place to work," ranking as the #2 best company to work for in Canada for a second consecutive year and #8 in Japan in the "Fewer than 250 Employees" category. Both honors are a testament to NetApp's model company approach, strong culture, and talented employees.
- NetApp gains impressive channel leadership recognition. NetApp was named a 2011 CRN Channel Champion in the Enterprise Network Storage category, amplifying the company's focus on enabling its partners' success. Additionally, Julie Parrish, senior vice president of Global Partner Sales; Todd Palmer, vice president of Americas Channels; and David Drahozal, director of Channel Sales for U.S. Public Sector, were named Channel Chiefs by Everything Channel's CRN.
- NetApp positioned in Leaders quadrant. Gartner, Inc. placed NetApp in the Leaders quadrant for midrange and high-end NAS solutions. Gartner asserted that vendors in the Leaders quadrant "have the highest scores in their ability to execute and completeness of vision."(4)
Webcast and Conference Call Information
The NetApp fourth quarter and fiscal year 2011 results conference call will
be broadcast live on the Internet at http://investors.netapp.com on
Wednesday, May 25, 2011, at 2:00 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 4:00
p.m. Pacific time on our 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.
About NetApp
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.
"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
forecasted operating results, share count, and metrics for the first
quarter of fiscal year 2012, as well as expectations regarding our recent
acquisition of the Engenio external storage systems business, our
partnerships and strategic alliances, and the benefits that we expect our
customers to realize from using our products and from our strategic
alliances and partnerships. 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, but are not limited to, customer demand
for our products and services; our ability to effectively integrate the
recently acquired Engenio external storage systems business and achieve our
anticipated results for such business; our ability to increase revenue and
manage our operating costs; our ability to accurately forecast demand for
our products; increased competition risks associated with the anticipated
growth in networked storage market; our reliance on a limited number of
suppliers; general economic and market conditions, including our stock
price; our ability to deliver new product architectures and enterprise
service offerings; our ability to design products and services that compete
effectively from a price and performance perspective; and other important
factors as described in NetApp reports and documents filed from time to
time with the Securities and Exchange Commission (SEC), including the
factors described under the sections captioned "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 and should be treated as such.
(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 expenses, 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 periods
presented.
(3) 80% hedged on maturity or conversion of the convertible notes.
(4) "Magic Quadrant for Midrange and High-End NAS Solutions" by Pushan
Rinnen, Roger W. Cox, and Robert E. Passmore, Gartner, Inc.
NetApp Usage of Non-GAAP Financials
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 expenses, 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.
Adoption of New Accounting Standards
In the fourth quarter of fiscal year 2011, NetApp adopted Accounting
Standards Update ("ASU") No. 2009-13, and ASU No. 2009-14 related to
revenue recognition for transactions originating or materially modified in
fiscal year 2011. We implemented these standards retrospectively to the
beginning of fiscal year 2011; therefore the full year and previously
reported fiscal 2011 quarterly results have been adjusted to reflect the
adoption of these new standards.
NETAPP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
April 29, April 30,
2011 (1) 2010
----------- -----------
ASSETS
Current assets:
Cash, cash equivalents and investments $ 5,174.7 $ 3,724.0
Accounts receivable, net 742.6 471.5
Inventories 108.5 112.9
Other current assets 368.5 228.7
----------- -----------
Total current assets 6,394.3 4,537.1
Property and equipment, net 911.6 804.4
Goodwill and other intangible assets, net 813.3 706.1
Long-term investments and restricted cash 69.2 72.8
Other non-current assets 310.4 374.0
----------- -----------
$ 8,498.8 $ 6,494.4
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 232.8 $ 184.6
Accrued compensation and other current
liabilities 763.0 591.3
1.75% Convertible Senior Notes due 2013 1,150.4 -
Short-term deferred revenue 1,226.6 1,135.1
----------- -----------
Total current liabilities 3,372.8 1,911.0
----------- -----------
1.75% Convertible Senior Notes due 2013 - 1,101.5
Other long-term liabilities 192.9 171.9
Long-term deferred revenue 1,088.3 779.5
----------- -----------
4,654.0 3,963.9
----------- -----------
Stockholders' equity 3,844.8 2,530.5
----------- -----------
$ 8,498.8 $ 6,494.4
=========== ===========
(1) In the fourth quarter of fiscal year 2011, NetApp adopted new revenue
recognition standards. We implemented these standards retrospectively to
the beginning of fiscal year 2011; therefore, the full year and previously
reported quarterly results for fiscal year 2011 have been adjusted to
reflect the adoption of these new standards.
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except net income per share amounts)
(Unaudited)
Three Months Ended Year Ended
-------------------- --------------------
April 29, April 30, April 29, April 30,
2011 (1) 2010 2011 (1) 2010
--------- --------- --------- ---------
Revenues:
Product $ 960.5 $ 758.8 $ 3,367.1 $ 2,381.1
Software entitlements and
maintenance 187.0 173.8 720.6 679.8
Service 280.8 239.2 1,034.9 870.5
--------- --------- --------- ---------
Net revenues 1,428.3 1,171.8 5,122.6 3,931.4
--------- --------- --------- ---------
Cost of revenues:
Cost of product 379.1 310.9 1,342.0 976.4
Cost of software entitlements
and maintenance 4.8 3.1 15.7 12.3
Cost of service 116.2 109.3 436.2 423.5
--------- --------- --------- ---------
Total cost of revenues 500.1 423.3 1,793.9 1,412.2
--------- --------- --------- ---------
Gross profit 928.2 748.5 3,328.7 2,519.2
--------- --------- --------- ---------
Operating expenses:
Sales and marketing 462.6 366.7 1,597.0 1,293.7
Research and development 176.5 143.7 648.6 535.7
General and administrative 69.0 64.2 251.3 238.8
Restructuring and other charges 2.4 (0.2) 1.8 2.5
Acquisition related (income)
expense, net 4.8 1.2 5.7 (39.9)
--------- --------- --------- ---------
Total operating expenses 715.3 575.6 2,504.4 2,030.8
--------- --------- --------- ---------
Income from operations 212.9 172.9 824.3 488.4
Other expense, net
Interest income 10.3 8.1 39.9 31.2
Interest expense (19.7) (18.8) (75.9) (74.1)
Other income, net 4.6 1.7 5.8 1.5
--------- --------- --------- ---------
Total other expense, net (4.8) (9.0) (30.2) (41.4)
--------- --------- --------- ---------
Income before income taxes 208.1 163.9 794.1 447.0
Provision for income taxes 47.5 18.8 121.0 46.6
--------- --------- --------- ---------
Net income $ 160.6 $ 145.1 $ 673.1 $ 400.4
========= ========= ========= =========
Net income per share:
Basic $ 0.44 $ 0.42 $ 1.87 $ 1.18
========= ========= ========= =========
Diluted $ 0.40 $ 0.40 $ 1.71 $ 1.13
========= ========= ========= =========
Shares used in net income per
share calculations:
Basic 368.1 346.1 360.9 339.6
========= ========= ========= =========
Diluted 403.6 364.5 393.7 353.2
========= ========= ========= =========
(1) In the fourth quarter of fiscal year 2011, NetApp adopted new revenue
recognition standards. We implemented these standards retrospectively to
the beginning of fiscal year 2011; therefore, the full year and previously
reported quarterly results for fiscal year 2011 have been adjusted to
reflect the adoption of these new standards. Our net revenues for the three
months and year ended April 29, 2011 were higher by $48.2 million and
$129.2 million, respectively, as a result of adoption of these new
standards.
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In millions)
(Unaudited)
Three Months Ended Year Ended
-------------------- --------------------
April 29, April 30, April 29, April 30,
2011 (1) 2010 2011 (1) 2010
--------- --------- --------- ---------
Cash Flows from Operating
Activities:
Net income $ 160.6 $ 145.1 $ 673.1 $ 400.4
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization 42.3 40.0 165.6 166.0
Stock-based compensation 48.2 37.8 175.2 159.8
Accretion of discount and
issue costs on notes 13.9 13.1 53.1 50.8
Unrealized losses on
derivative activities (2.5) - 9.9 -
Tax benefit from stock-based
compensation 53.6 1.8 128.5 (0.9)
Excess tax benefit from
stock-based compensation (64.4) (7.6) (127.7) (8.6)
Other, net 17.2 4.1 (21.4) (1.6)
Changes in assets and
liabilities, net of
acquisition of business:
Accounts receivable (185.2) (13.4) (262.7) (21.3)
Inventories (14.4) (41.2) 4.4 (52.1)
Accounts payable 41.0 43.1 38.7 42.7
Accrued compensation and
other current liabilities 159.4 112.4 118.8 53.2
Deferred revenue 231.4 116.6 382.9 176.7
Changes in other operating
assets and liabilities,
net (42.3) 22.8 7.9 9.9
--------- --------- --------- ---------
Net cash provided by
operating activities 458.8 474.6 1,346.3 975.0
--------- --------- --------- ---------
Cash Flows from Investing
Activities:
Purchases and redemptions of
investments, net 417.0 (768.9) (418.5) (860.3)
Purchases of property and
equipment (72.9) (38.4) (222.7) (135.6)
Acquisition of business, net
of cash acquired (61.6) - (136.5) -
Other investing activities,
net (0.3) 4.1 0.5 8.2
--------- --------- --------- ---------
Net cash provided by
(used in) investing
activities 282.2 (803.2) (777.2) (987.7)
--------- --------- --------- ---------
Cash Flows from Financing
Activities:
Issuance of common stock 12.2 40.4 324.2 197.1
Excess tax benefit from
stock-based compensation 64.4 7.6 127.7 8.6
Settlement of note hedge - 14.2 - 14.2
Other financing activities (1.4) - (1.0) -
--------- --------- --------- ---------
Net cash provided by
financing activities 75.2 62.2 450.9 219.9
--------- --------- --------- ---------
Effect of Exchange Rate Changes
on Cash and Cash Equivalents 21.7 (4.4) 32.3 3.6
Net Increase (Decrease) in Cash
and Cash Equivalents 837.9 (270.8) 1,052.3 210.8
Cash and Cash Equivalents:
Beginning of period 1,919.4 1,975.8 1,705.0 1,494.2
--------- --------- --------- ---------
End of period $ 2,757.3 $ 1,705.0 $ 2,757.3 $ 1,705.0
========= ========= ========= =========
(1) In the fourth quarter of fiscal year 2011, NetApp adopted new revenue
recognition standards. We implemented these standards retrospectively to
the beginning of fiscal year 2011; therefore, the full year and previously
reported quarterly results for fiscal year 2011 have been adjusted to
reflect the adoption of these new standards.
NETAPP, INC.
RECONCILIATION OF NON-GAAP AND GAAP
IN THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except net income per share amounts)
(Unaudited)
Three Months Ended Year Ended
-------------------- --------------------
April 29, April 30, April 29, April 30,
2011 (1) 2010 2011 (1) 2010
--------- --------- --------- ---------
SUMMARY RECONCILIATION OF NET
INCOME
NET INCOME $ 160.6 $ 145.1 $ 673.1 $ 400.4
Adjustments:
Amortization of intangible
assets 4.3 4.9 17.7 20.5
Stock-based compensation
expenses 48.4 37.8 175.2 159.8
Restructuring and other
charges 2.4 (0.2) 1.8 2.5
Acquisition related (income)
expense, net 4.8 1.2 5.7 (39.9)
Non-cash interest expense 13.9 13.1 53.1 50.8
Gain on investments (0.9) (1.2) (3.4) (4.7)
Income tax effect of non-GAAP
adjustments 3.2 (17.6) (57.5) (56.4)
--------- --------- --------- ---------
NON-GAAP NET INCOME $ 236.7 $ 183.1 $ 865.7 $ 533.0
========= ========= ========= =========
NET INCOME PER SHARE $ 0.398 $ 0.398 $ 1.710 $ 1.134
Adjustments:
Amortization of intangible
assets 0.011 0.013 0.045 0.058
Stock-based compensation
expenses 0.120 0.104 0.445 0.452
Restructuring and other
charges 0.006 (0.001) 0.005 0.007
Acquisition related (income)
expense, net 0.012 0.003 0.014 (0.113)
Non-cash interest expense 0.034 0.036 0.135 0.144
Gain on investments (0.002) (0.003) (0.009) (0.013)
Income tax effect of non-GAAP
adjustments 0.008 (0.048) (0.146) (0.160)
--------- --------- --------- ---------
NON-GAAP NET INCOME PER SHARE $ 0.586 $ 0.502 $ 2.199 $ 1.509
========= ========= ========= =========
(1) In the fourth quarter of fiscal year 2011, NetApp adopted new revenue
recognition standards. We implemented these standards retrospectively to
the beginning of fiscal year 2011; therefore, the full year and previously
reported quarterly results for fiscal year 2011 have been adjusted to
reflect the adoption of these new standards.
NETAPP, INC.
SUPPLEMENTAL INFORMATION
(In millions)
(Unaudited)
Three Months Ended April 29, 2011 (1)
-------------------------------------
Amortization Restructuring
of Stock-based and
Intangible Compensation Other
Assets Expenses Charges
----------- ------------ -----------
Cost of product
revenues $ 3.1 $ 1.0 $ -
Cost of service
revenues - 3.8 -
Sales and marketing
expense 1.1 22.4 -
Research and
development expense 0.1 12.9 -
General and
administrative expense - 8.3 -
Restructuring and other
charges - - 2.4
Acquisition related
expense - - -
Interest expense - - -
Other income
(expenses), net - - -
----------- ------------ -----------
Effect on income before
income taxes $ 4.3 $ 48.4 $ 2.4
Three Months Ended April 29, 2011 (1)
--------------------------------------------------
Acquisition
related
(income) Non-Cash
expense, Interest Gain on
net Expense Investments Total
----------- ------------ ----------- -----------
Cost of product
revenues $ - $ - $ - $ 4.1
Cost of service
revenues - - - 3.8
Sales and marketing
expense - - - 23.5
Research and
development expense - - - 13.0
General and
administrative expense - - - 8.3
Restructuring and other
charges - - - 2.4
Acquisition related
expense 4.8 - - 4.8
Interest expense - 13.9 - 13.9
Other income
(expenses), net - - (0.9) (0.9)
----------- ------------ ----------- -----------
Effect on income before
income taxes $ 4.8 $ 13.9 $ (0.9) $ 72.9
Year Ended April 29, 2011 (1)
-------------------------------------
Amortization Restructuring
of Stock-based and
Intangible Compensation Other
Assets Expenses Charges
----------- ------------ -----------
Cost of product
revenues $ 13.3 $ 3.6 $ -
Cost of service
revenues - 14.4 -
Sales and marketing
expense 4.3 81.5 -
Research and
development expense 0.1 44.5 -
General and
administrative expense - 31.2 -
Restructuring and other
charges - - 1.8
Acquisition related
expense - - -
Interest expense - - -
Other income
(expenses), net - - -
----------- ------------ -----------
Effect on income before
income taxes $ 17.7 $ 175.2 $ 1.8
Year Ended April 29, 2011 (1)
--------------------------------------------------
Acquisition
related
(income) Non-Cash
expense, Interest Gain on
net Expense Investments Total
----------- ------------ ----------- -----------
Cost of product
revenues $ - $ - $ - $ 16.9
Cost of service
revenues - - - 14.4
Sales and marketing
expense - - - 85.8
Research and
development expense - - - 44.6
General and
administrative expense - - - 31.2
Restructuring and other
charges - - - 1.8
Acquisition related
expense 5.7 - - 5.7
Interest expense - 53.1 - 53.1
Other income
(expenses), net - - (3.4) (3.4)
----------- ------------ ----------- -----------
Effect on income before
income taxes $ 5.7 $ 53.1 $ (3.4) $ 250.1
Three Months Ended April 30, 2010
-------------------------------------
Amortization Restructuring
of Stock-based and
Intangible Compensation Other
Assets Expenses Charges
----------- ------------ -----------
Cost of product
revenues $ 4.1 $ 1.3 $ -
Cost of service
revenues - 3.5 -
Sales and marketing
expense 0.8 16.9 -
Research and
development expense - 9.0 -
General and
administrative expense - 7.1 -
Restructuring and other
charges - - (0.2)
Acquisition related
expense - - -
Interest expense - - -
Other income
(expenses), net - - -
----------- ------------ -----------
Effect on income before
income taxes $ 4.9 $ 37.8 $ (0.2)
Three Months Ended April 30, 2010
--------------------------------------------------
Acquisition
related
(income) Non-Cash
expense, Interest Gain on
net Expense Investments Total
----------- ------------ ----------- -----------
Cost of product
revenues $ - $ - $ - $ 5.4
Cost of service
revenues - - - 3.5
Sales and marketing
expense - - - 17.7
Research and
development expense - - - 9.0
General and
administrative expense - - - 7.1
Restructuring and other
charges - - - (0.2)
Acquisition related
expense 1.2 - - 1.2
Interest expense - 13.1 - 13.1
Other income
(expenses), net - - (1.2) (1.2)
----------- ------------ ----------- -----------
Effect on income before
income taxes $ 1.2 $ 13.1 $ (1.2) $ 55.6
Year Ended April 30, 2010
-------------------------------------
Amortization Restructuring
of Stock-based and
Intangible Compensation Other
Assets Expenses Charges
----------- ------------ -----------
Cost of product
revenues $ 17.1 $ 4.0 $ -
Cost of service
revenues - 14.3 -
Sales and marketing
expense 3.4 73.7 -
Research and
development expense - 38.5 -
General and
administrative expense - 29.3 -
Restructuring and other
charges - - 2.5
Acquisition related
income, net - - -
Interest expense - - -
Other income
(expenses), net - - -
----------- ------------ -----------
Effect on income before
income taxes $ 20.5 $ 159.8 $ 2.5
Year Ended April 30, 2010
--------------------------------------------------
Acquisition
related
(income) Non-Cash
expense, Interest Gain on
net Expense Investments Total
----------- ------------ ----------- -----------
Cost of product
revenues $ - $ - $ - $ 21.1
Cost of service
revenues - - - 14.3
Sales and marketing
expense - - - 77.1
Research and
development expense - - - 38.5
General and
administrative expense - - - 29.3
Restructuring and other
charges - - - 2.5
Acquisition related
income, net (39.9) - - (39.9)
Interest expense - 50.8 - 50.8
Other income
(expenses), net - - (4.7) (4.7)
----------- ------------ ----------- -----------
Effect on income before
income taxes $ (39.9) $ 50.8 $ (4.7) $ 189.0
(1) In the fourth quarter of fiscal year 2011, NetApp adopted new revenue
recognition standards. We implemented these standards retrospectively to
the beginning of fiscal year 2011; therefore, the full year and previously
reported quarterly results for fiscal year 2011 have been adjusted to
reflect the adoption of these new standards.
NETAPP, INC.
RECONCILIATION OF NON GAAP GUIDANCE TO GAAP
EXPRESSED AS EARNINGS PER SHARE
FIRST QUARTER 2012
(Unaudited)
First Quarter
2012
---------------
Non-GAAP Guidance $0.52 - $0.57
Adjustments of Specific Items to
Net Income Per Share for the First
Quarter 2012:
Amortization of intangible assets (0.04)
Stock based compensation expense (0.13)
Acquisition-related expense (0.04)
Restructuring & other charges (0.02)
Non cash interest expense (0.03)
Income tax effect 0.05
---------------
Total Adjustments (0.21)
GAAP Guidance - Net Income Per Share $0.31 - $0.36
Contact Information:
Press Contact:
Ryan Lowry
NetApp
(408) 822-7544
ryanl@netapp.com
Investor Contacts:
Shauna O'Boyle
NetApp
(408) 822-7655
oboyle@netapp.com