Welcome!

OpenStack Journal Authors: Liz McMillan, RealWire News Distribution, Jerry Huang, Kevin Benedict, Greg Schulz

News Feed Item

NetApp Reports Third Quarter Fiscal Year 2014 Results

Non-GAAP Earnings per Share of $0.75, Up 12% Year Over Year

SUNNYVALE, CA -- (Marketwired) -- 02/12/14 -- NetApp (NASDAQ: NTAP)

  • Net revenues of $1.610 billion
  • Cash from operations of $332 million; free cash flow 17% of revenue
  • Clustered Data ONTAP® node shipments up almost 300% year over year

NetApp (NASDAQ: NTAP) today reported financial results for the third quarter of fiscal year 2014, ended January 24, 2014.

Third Quarter Financial Results
Net revenues for the third quarter of fiscal year 2014 were $1.610 billion. GAAP net income for the third quarter of fiscal year 2014 was $192 million, or $0.55 per share,(1) compared to GAAP net income of $158 million, or $0.43 per share, for the comparable period of the prior year. Non-GAAP net income for the third quarter of fiscal year 2014 was $261 million, or $0.75 per share,(2) compared to non-GAAP net income of $243 million, or $0.67 per share, for the comparable period of the prior year.

Cash, Cash Equivalents, and Investments
NetApp ended the third quarter of 2014 with $5.069 billion of total cash, cash equivalents, and investments and during the quarter generated approximately $332 million in cash from operations. The Company returned $557 million to shareholders during the quarter through share repurchases and a cash dividend. The next dividend in the amount of $0.15 per share will be paid on April 22, 2014 to shareholders of record as of the close of business on April 10, 2014.

"We are pleased with our strong operational execution again this quarter," said Tom Georgens, president and CEO. "With our strategy of delivering best-of-breed cloud-integrated and flash-accelerated solutions and our unique ability to manage data seamlessly across on- and off-premise environments, we are well positioned to create ongoing opportunity in the evolving IT landscape."

Q4 Fiscal Year 2014 Outlook
The Company is providing the following financial guidance for the fourth quarter of fiscal year 2014:

  • Total revenue is expected to be in the range of $1.620 billion to $1.720 billion
  • GAAP earnings per share is expected to be in the range of $0.57 to $0.62 per share
  • Non-GAAP earnings per share is expected to be in the range of $0.77 to $0.82 per share

Business Highlights
In its third quarter of fiscal year 2014, NetApp continued to execute one of the industry's most innovative roadmaps with a focus on delivering cloud-integrated and flash-accelerated storage and data-management solutions that address customers' shared and dedicated infrastructure requirements. Highlights include:

  • Continued Adoption of Clustered Data ONTAP. The attach rate of clustered ONTAP increased across every product line, with the FAS3000 family showing the largest increase. Clustered node shipments in the quarter increased by almost 300% year over year.
  • NetApp Introduces New All-Flash Array. The new NetApp® EF550 all-flash array delivers high performance and consistent low latency for business-critical applications that require responsiveness and enterprise reliability. NetApp continues to execute its flash technology roadmap, solidifying its position as one of the established leaders in flash technology innovation.
  • NetApp Unveils Performance-Optimized Enterprise Storage Systems. The new NetApp E2700 offers simple and flexible management for small remote/branch offices requiring optimal price/performance. The updated NetApp E5500 delivers enhanced performance, density, and modular flexibility for the widest range of data-intensive workloads.
  • NetApp Simplifies and Accelerates Deployment of OpenStack Cloud Services. NetApp announced new contributions to OpenStack that include solutions for OpenStack Havana, incubation of a service for OpenStack Icehouse, and expanded support for partners and customers, including options that provide lower cost, faster innovation, flexibility, and no vendor lock-in.
  • Leading Analyst Firm Ranks NetApp #1 in Storage System Capacity Shipped for Public Cloud Infrastructure. Recently, IDC ranked NetApp as having the #1 storage solution shipped for 2012 for public cloud infrastructure from the perspective of external system capacity. The ranking was conducted as part of IDC's biannual Storage User Demand Study,(3) which analyzes current and future deployments of enterprise storage systems for particular data uses.
  • NetApp Once Again Recognized as a Best Company to Work for in America. The recognition marks the 12th consecutive year that NetApp was named to this list of 100 elite companies by FORTUNE magazine.

Webcast and Conference Call Information
NetApp will host a conference call to discuss these results today at 2:30 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 after 4:30 p.m. Pacific Time today on the website.

Historical supplemental data tables, providing historical multi-period financial information, are 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 Q4 Fiscal Year 2014 Outlook section relating to the financial guidance for the fourth quarter of fiscal year 2014, the benefits to us and our customers of our products and services, including our cloud and flash storage solutions and the ability of our products to address data management demands across integrated on-premise and off-premise IT environments. 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. 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.

(3)IDC Storage Users Demand Study 2013-Spring Edition, IDC #244209, November 2013

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)

                                                 January 24,
                                                    2014      April 26, 2013
                                               -------------- --------------

ASSETS

Current assets:
  Cash, cash equivalents and investments       $      5,069.3 $      6,952.6
  Accounts receivable, net                              584.3          800.9
  Inventories                                           118.2          139.5
  Other current assets                                  457.6          525.2
                                               -------------- --------------
    Total current assets                              6,229.4        8,418.2

Property and equipment, net                           1,128.6        1,170.9
Goodwill and purchased intangible assets, net         1,124.2        1,168.7
Other non-current assets                                518.4          484.6
                                               -------------- --------------
      Total assets                             $      9,000.6 $     11,242.4
                                               ============== ==============


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                             $        186.6 $        259.7
  Accrued compensation and other current
   liabilities                                          670.9          749.8
  Current portion of long-term debt                         -        1,257.8
  Short-term deferred revenue                         1,566.3        1,563.3
                                               -------------- --------------
    Total current liabilities                         2,423.8        3,830.6

Long-term debt                                          995.2          994.6
Other long-term liabilities                             272.7          253.5
Long-term deferred revenue                            1,393.0        1,446.2
                                               -------------- --------------
    Total liabilities                                 5,084.7        6,524.9

Stockholders' equity                                  3,915.9        4,717.5
                                               -------------- --------------
      Total liabilities and stockholders'
       equity                                  $      9,000.6 $     11,242.4
                                               ============== ==============



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

                                  Three Months Ended     Nine Months Ended
                                 --------------------  --------------------
                                  January    January    January    January
                                  24, 2014   25, 2013   24, 2014   25, 2013
                                 ---------  ---------  ---------  ---------
Revenues:
  Product                        $ 1,015.0  $ 1,060.7  $ 2,901.1  $ 2,954.5
  Software entitlements and
   maintenance                       227.0      228.6      687.3      666.5
  Service                            368.0      340.8    1,087.7      994.9
                                 ---------  ---------  ---------  ---------
    Net revenues                   1,610.0    1,630.1    4,676.1    4,615.9
                                 ---------  ---------  ---------  ---------
Cost of revenues:
  Cost of product                    450.7      512.5    1,323.9    1,442.0
  Cost of software entitlements
   and maintenance                     7.7        7.3       22.7       20.9
  Cost of service                    149.3      145.4      452.4      424.1
                                 ---------  ---------  ---------  ---------
    Total cost of revenues           607.7      665.2    1,799.0    1,887.0
                                 ---------  ---------  ---------  ---------
      Gross profit                 1,002.3      964.9    2,877.1    2,728.9
                                 ---------  ---------  ---------  ---------
Operating expenses:
  Sales and marketing                475.9      493.5    1,423.2    1,464.6
  Research and development           230.3      215.6      686.6      660.8
  General and administrative          69.4       66.2      207.3      198.4
  Restructuring and other
   charges                               -          -       49.5          -
  Acquisition-related expense            -        1.7          -        1.7
                                 ---------  ---------  ---------  ---------
    Total operating expenses         775.6      777.0    2,366.6    2,325.5
                                 ---------  ---------  ---------  ---------
Income from operations               226.7      187.9      510.5      403.4
Other income/(expense), net:
  Interest income                      7.9       10.3       26.4       32.1
  Interest expense                    (6.7)     (24.0)     (29.7)     (63.7)
  Other income, net                    1.7        1.6        6.9        5.9
                                 ---------  ---------  ---------  ---------
    Total other
     income/(expense), net             2.9      (12.1)       3.6      (25.7)
                                 ---------  ---------  ---------  ---------
Income before income taxes           229.6      175.8      514.1      377.7
Provision for income taxes            37.5       17.7       73.6       46.2
                                 ---------  ---------  ---------  ---------
Net income                       $   192.1  $   158.1  $   440.5  $   331.5
                                 =========  =========  =========  =========
Net income per share:
  Basic                          $    0.57  $    0.44  $    1.28  $    0.91
                                 =========  =========  =========  =========
  Diluted                        $    0.55  $    0.43  $    1.25  $    0.90
                                 =========  =========  =========  =========
Shares used in net income per
 share calculations:
  Basic                              339.4      359.5      343.7      362.5
                                 =========  =========  =========  =========
  Diluted                            346.2      364.7      351.7      368.1
                                 =========  =========  =========  =========
Cash dividends declared per
 share                           $    0.15  $       -  $    0.45  $       -
                                 =========  =========  =========  =========



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


                                  Three Months Ended     Nine Months Ended
                                 --------------------  --------------------
                                  January    January    January    January
                                  24, 2014   25, 2013   24, 2014   25, 2013
                                 ---------  ---------  ---------  ---------

Cash flows from operating
 activities:
Net income                       $   192.1  $   158.1  $   440.5  $   331.5
  Adjustments to reconcile net
   income to net cash provided
   by operating activities:
    Depreciation and
     amortization                     83.6       86.4      252.0      255.5
    Stock-based compensation          71.9       67.3      205.8      211.5
    Accretion of discount and
     issuance costs on debt            0.4       15.3        9.2       44.0
    Excess tax benefit from
     stock-based compensation        (23.9)      (9.4)     (33.4)     (53.0)
    Other, net                        (6.7)       3.4      (31.6)      (8.3)
  Changes in assets and
   liabilities, net of acquired
   business
    Accounts receivable                4.1      (19.8)     213.4      193.1
    Inventories                       (2.3)      40.3       21.3      (11.4)
    Accounts payable                 (29.0)     (29.9)     (69.8)     (16.0)
    Accrued compensation and
     other current liabilities         7.9      (19.2)     (94.5)     (35.1)
    Deferred revenue                  40.6      105.3      (27.0)      62.7
    Changes in other operating
     assets and liabilities, net      (6.9)     (32.7)      94.2      (43.8)
                                 ---------  ---------  ---------  ---------
      Net cash provided by
       operating activities          331.8      365.1      980.1      930.7
                                 ---------  ---------  ---------  ---------
Cash flows from investing
 activities:
  Redemptions of investments,
   net                                90.6      110.7      762.7      204.1
  Purchases of property and
   equipment                         (57.9)    (110.7)    (165.4)    (239.7)
  Acquisition of business, net
   of cash acquired                      -      (89.4)         -      (89.4)
  Other investing activities,
   net                                (0.8)       0.2        2.6        3.0
                                 ---------  ---------  ---------  ---------
      Net cash provided by (used
       in) investing activities       31.9      (89.2)     599.9     (122.0)
                                 ---------  ---------  ---------  ---------
Cash flows from financing
 activities:
  Issuance of common stock under
   employee stock plans               67.9       50.4      191.8       95.5
  Repurchase of common stock and
   forward contract                 (507.0)     (61.7)  (1,507.0)    (410.0)
  Excess tax benefit from stock-
   based compensation                 23.9        9.4       33.4       53.0
  Repayment of debt                      -          -   (1,264.9)         -
  Issuance of long-term debt,
   net                                   -      987.3          -      987.3
  Dividends paid                     (50.4)         -     (153.1)         -
  Other financing activities,
   net                                (1.8)      (0.4)      (7.5)      (0.7)
                                 ---------  ---------  ---------  ---------
      Net cash provided by (used
       in) financing activities     (467.4)     985.0   (2,707.3)     725.1
                                 ---------  ---------  ---------  ---------

Effect of exchange rate changes
 on cash and cash equivalents         (4.1)       4.0        2.9       (1.9)

Net increase (decrease) in cash
 and cash equivalents               (107.8)   1,264.9   (1,124.4)   1,531.9
Cash and cash equivalents:
  Beginning of period              2,260.5    1,816.8    3,277.1    1,549.8
                                 ---------  ---------  ---------  ---------
  End of period                  $ 2,152.7  $ 3,081.7  $ 2,152.7  $ 3,081.7
                                 =========  =========  =========  =========



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


                                               Q3 FY'14  Q2 FY'14  Q3 FY'13
                                               --------  --------  --------
  Revenues
Product Revenue                                $1,015.0  $  955.3  $1,060.7
Software Entitlements & Maintenance Revenue
 (SEM)                                            227.0     231.8     228.6
Service Revenue:                                  368.0     362.8     340.8
  Hardware Maintenance Support Contracts
   Revenue                                        285.9     276.4     254.8
  Professional & Other Services Revenue            82.1      86.4      86.0
                                               --------  --------  --------
    Net Revenues                               $1,610.0  $1,549.9  $1,630.1

  Branded and OEM Revenues
                                               Q3 FY'14  Q2 FY'14  Q3 FY'13
                                               --------  --------  --------
Branded Revenue                                $1,452.7  $1,398.8  $1,426.9
OEM Revenue                                       157.3     151.1     203.2
                                               --------  --------  --------
    Net Revenues                               $1,610.0  $1,549.9  $1,630.1

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 Q3   % of Q2   % of Q3
                                                  FY'14     FY'14     FY'13
                                                Revenue   Revenue   Revenue
                                               --------  --------  --------
Americas*                                            52%       58%       54%
  Americas Commercial                                43%       42%       44%
  U.S. Public Sector                                  9%       16%       10%
EMEA                                                 34%       29%       32%
Asia Pacific                                         14%       13%       13%

* Americas Commercial and USPS revenue for Q3FY'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 Q3   % of Q2   % of Q3
                                                  FY'14     FY'14     FY'13
                                                Revenue   Revenue   Revenue
                                               --------  --------  --------
Direct                                               17%       17%       19%
Indirect                                             83%       83%       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
                                               Q3 FY'14  Q2 FY'14  Q3 FY'13
                                               --------  --------  --------
Non-GAAP Gross Margin                              63.5%     63.6%     60.4%
  Product                                          57.1%     57.3%     53.1%
  Software Entitlements & Maintenance (SEM)        96.6%     96.8%     96.8%
  Service                                          60.8%     58.9%     58.7%


  Non-GAAP Income from Operations, Income
   before Income Taxes & Effective Tax Rate
                                               Q3 FY'14  Q2 FY'14  Q3 FY'13
                                               --------  --------  --------
Non-GAAP Income from Operations                $  313.3  $  270.5  $  278.3
  % of Net Revenue                                 19.5%     17.5%     17.1%
Non-GAAP Income before Income Taxes            $  316.2  $  275.8  $  280.8
Non-GAAP Effective Tax Rate                        17.6%     16.1%     13.6%



  Non-GAAP Net Income
                                               Q3 FY'14  Q2 FY'14  Q3 FY'13
                                               --------  --------  --------
Non-GAAP Net Income                            $  260.6  $  231.5  $  242.7
Weighted Average Common Shares Outstanding,
 Diluted                                          346.2     349.1     364.7
Non-GAAP Net Income per Share, Diluted         $   0.75  $   0.66  $   0.67

Included in the diluted weighted average common shares outstanding are 0.1
 million shares in Q3 FY'13 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
                                               Q3 FY'14  Q2 FY'14  Q3 FY'13
                                               --------  --------  --------
Deferred Revenue                               $2,959.3  $2,931.9  $2,876.0
DSO (days)                                           33        35        35
Inventory Turns                                      20        20        15

Days sales outstanding (DSO) is defined as accounts receivable, net divided
 by net revenues, 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
                                               Q3 FY'14  Q2 FY'14  Q3 FY'13
                                               --------  --------  --------
Net Cash Provided by Operating Activities      $  331.8  $  362.5  $  365.1
Purchases of Property and Equipment            $   57.9  $   42.2  $  110.7
Free Cash Flow                                 $  273.9  $  320.3  $  254.4
Free Cash Flow as % of Total Revenue               17.0%     20.7%     15.6%

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
                                               ----------------------------
                                                January   October   January
                                               24, 2014  25, 2013  25, 2013
                                               --------  --------  --------

NET INCOME                                     $  192.1  $  166.8  $  158.1
Adjustments:
  Amortization of intangible assets                14.7      14.9      21.4
  Stock-based compensation                         71.9      67.6      67.3
  Restructuring and other charges                     -       1.1         -
  Acquisition-related expense                         -         -       1.7
  Non-cash interest expense                           -         -      15.3
  Gain on investments                                 -         -      (0.7)
  Income tax effect of Non-GAAP adjustments       (18.1)    (18.9)    (20.4)
                                               --------  --------  --------
NON-GAAP NET INCOME                            $  260.6  $  231.5  $  242.7
                                               ========  ========  ========

COST OF REVENUES                               $  607.7  $  584.7  $  665.2
Adjustments:
  Amortization of intangible assets               (14.2)    (14.3)    (13.9)
  Stock-based compensation                         (6.1)     (5.6)     (6.2)
                                               --------  --------  --------
NON-GAAP COST OF REVENUES                      $  587.4  $  564.8  $  645.1
                                               ========  ========  ========

COST OF PRODUCT REVENUES                       $  450.7  $  423.3  $  512.5
Adjustments:
  Amortization of intangible assets               (13.6)    (13.8)    (13.9)
  Stock-based compensation                         (1.5)     (1.4)     (1.4)
                                               --------  --------  --------
NON-GAAP COST OF PRODUCT REVENUES              $  435.6  $  408.1  $  497.2
                                               ========  ========  ========

COST OF SERVICE REVENUES                       $  149.3  $  153.9  $  145.4
Adjustments:
  Amortization of intangible assets                (0.6)     (0.5)        -
  Stock-based compensation                         (4.6)     (4.2)     (4.8)
                                               --------  --------  --------
NON-GAAP COST OF SERVICE REVENUES              $  144.1  $  149.2  $  140.6
                                               ========  ========  ========

GROSS PROFIT                                   $1,002.3  $  965.2  $  964.9
Adjustments:
  Amortization of intangible assets                14.2      14.3      13.9
  Stock-based compensation                          6.1       5.6       6.2
                                               --------  --------  --------
NON-GAAP GROSS PROFIT                          $1,022.6  $  985.1  $  985.0
                                               ========  ========  ========

SALES AND MARKETING EXPENSES                   $  475.9  $  479.5  $  493.5
Adjustments:
  Amortization of intangible assets                (0.5)     (0.6)     (7.5)
  Stock-based compensation                        (33.0)    (31.1)    (31.9)
                                               --------  --------  --------
NON-GAAP SALES AND MARKETING EXPENSES          $  442.4  $  447.8  $  454.1
                                               ========  ========  ========

RESEARCH AND DEVELOPMENT EXPENSES              $  230.3  $  228.2  $  215.6
Adjustment:
  Stock-based compensation                        (23.6)    (21.6)    (20.8)
                                               --------  --------  --------
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES     $  206.7  $  206.6  $  194.8
                                               ========  ========  ========

GENERAL AND ADMINISTRATIVE EXPENSES            $   69.4  $   69.5  $   66.2
Adjustment:
  Stock-based compensation                         (9.2)     (9.3)     (8.4)
                                               --------  --------  --------
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES   $   60.2  $   60.2  $   57.8
                                               ========  ========  ========

RESTRUCTURING AND OTHER CHARGES                $      -  $    1.1  $      -
Adjustment:
  Restructuring and other charges                     -      (1.1)        -
                                               --------  --------  --------
NON-GAAP RESTRUCTURING AND OTHER CHARGES       $      -  $      -  $      -
                                               ========  ========  ========

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

OPERATING EXPENSES                             $  775.6  $  778.3  $  777.0
Adjustments:
  Amortization of intangible assets                (0.5)     (0.6)     (7.5)
  Stock-based compensation                        (65.8)    (62.0)    (61.1)
  Restructuring and other charges                     -      (1.1)        -
  Acquisition-related expense                         -         -      (1.7)
                                               --------  --------  --------
NON-GAAP OPERATING EXPENSES                    $  709.3  $  714.6  $  706.7
                                               ========  ========  ========

INCOME FROM OPERATIONS                         $  226.7  $  186.9  $  187.9
Adjustments:
  Amortization of intangible assets                14.7      14.9      21.4
  Stock-based compensation                         71.9      67.6      67.3
  Restructuring and other charges                     -       1.1         -
  Acquisition-related expense                         -         -       1.7
                                               --------  --------  --------
NON-GAAP INCOME FROM OPERATIONS                $  313.3  $  270.5  $  278.3
                                               ========  ========  ========

TOTAL OTHER INCOME (EXPENSE), NET              $    2.9  $    5.3  $  (12.1)
Adjustments:
  Non-cash interest expense                           -         -      15.3
  Gain on investments                                 -         -      (0.7)
                                               --------  --------  --------
NON-GAAP TOTAL OTHER INCOME, NET               $    2.9  $    5.3  $    2.5
                                               ========  ========  ========

INCOME BEFORE INCOME TAXES                     $  229.6  $  192.2  $  175.8
Adjustments:
  Amortization of intangible assets                14.7      14.9      21.4
  Stock-based compensation                         71.9      67.6      67.3
  Restructuring and other charges                     -       1.1         -
  Acquisition-related expense                         -         -       1.7
  Non-cash interest expense                           -         -      15.3
  Gain on investments                                 -         -      (0.7)
                                               --------  --------  --------
NON-GAAP INCOME BEFORE INCOME TAXES            $  316.2  $  275.8  $  280.8
                                               ========  ========  ========

PROVISION FOR INCOME TAXES                     $   37.5  $   25.4  $   17.7
Adjustment:
  Income tax effect of Non-GAAP adjustments        18.1      18.9      20.4
                                               --------  --------  --------
NON-GAAP PROVISION FOR INCOME TAXES            $   55.6  $   44.3  $   38.1
                                               ========  ========  ========

NET INCOME PER SHARE                           $  0.555  $  0.478  $  0.434
Adjustments:
  Amortization of intangible assets               0.042     0.043     0.059
  Stock-based compensation                        0.208     0.194     0.184
  Restructuring and other charges                     -     0.002         -
  Acquisition-related expense                         -         -     0.005
  Non-cash interest expense                           -         -     0.042
  Gain on investments                                 -         -    (0.002)
  Income tax effect of Non-GAAP adjustments      (0.052)   (0.054)   (0.057)
                                               --------  --------  --------
NON-GAAP NET INCOME PER SHARE                  $  0.753  $  0.663  $  0.665
                                               ========  ========  ========



                                NETAPP, INC.
                 RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP
                       EXPRESSED AS EARNINGS PER SHARE
                             FOURTH QUARTER 2014
                                 (Unaudited)


                                                              Fourth Quarter
                                                                   2014
                                                              --------------

Non-GAAP Guidance - Net Income Per Share                       $0.77 - $0.82


Adjustments of Specific Items to Net Income Per Share for the
 Fourth Quarter 2014:

  Amortization of intangible assets                               (0.04)
  Stock-based compensation expense                                (0.22)
  Income tax effect                                                0.06
                                                              --------------
Total Adjustments                                                 (0.20)

GAAP Guidance - Net Income Per Share                           $0.57 - $0.62


Add to Digg Bookmark with del.icio.us Add to Newsvine

Press Contact:
Ryan Lowry
NetApp
408-822-7544
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.

Cloud Expo Breaking News
Web conferencing in a public cloud has the same risks as any other cloud service. If you have ever had concerns over the types of data being shared in your employees’ web conferences, such as IP, financials or customer data, then it’s time to look at web conferencing in a private cloud. In her session at 14th Cloud Expo, Courtney Behrens, Senior Marketing Manager at Brother International, will discuss how issues that had previously been out of your control, like performance, advanced administration and compliance, can now be put back behind your firewall.
Cloud scalability and performance should be at the heart of every successful Internet venture. The infrastructure needs to be resilient, flexible, and fast – it’s best not to get caught thinking about architecture until the middle of an emergency, when it's too late. In his interactive, no-holds-barred session at 14th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, will dive into how to design and build-out the right cloud infrastructure.
Cloud backup and recovery services are critical to safeguarding an organization’s data and ensuring business continuity when technical failures and outages occur. With so many choices, how do you find the right provider for your specific needs? In his session at 14th Cloud Expo, Daniel Jacobson, Technology Manager at BUMI, will outline the key factors including backup configurations, proactive monitoring, data restoration, disaster recovery drills, security, compliance and data center resources. Aside from the technical considerations, the secret sauce in identifying the best vendor is the level of focus, expertise and specialization of their engineering team and support group, and how they monitor your day-to-day backups, provide recommendations, and guide you through restores when necessary.
More and more enterprises today are doing business by opening up their data and applications through APIs. Though forward-thinking and strategic, exposing APIs also increases the surface area for potential attack by hackers. To benefit from APIs while staying secure, enterprises and security architects need to continue to develop a deep understanding about API security and how it differs from traditional web application security or mobile application security. In his session at 14th Cloud Expo, Sachin Agarwal, VP of Product Marketing and Strategy at SOA Software, will walk you through the various aspects of how an API could be potentially exploited. He will discuss the necessary best practices to secure your data and enterprise applications while continue continuing to support your business’s digital initiatives.
The revolution that happened in the server universe over the past 15 years has resulted in an eco-system that is more open, more democratically innovative and produced better results in technically challenging dimensions like scale. The underpinnings of the revolution were common hardware, standards based APIs (ex. POSIX) and a strict adherence to layering and isolation between applications, daemons and kernel drivers/modules which allowed multiple types of development happen in parallel without hindering others. Put simply, today's server model is built on a consistent x86 platform with few surprises in its core components. A kernel abstracts away the platform, so that applications and daemons are decoupled from the hardware. In contrast, networking equipment is still stuck in the mainframe era. Today, networking equipment is a single appliance, including hardware, OS, applications and user interface come as a monolithic entity from a single vendor. Switching between different vendor'...
You use an agile process; your goal is to make your organization more agile. What about your data infrastructure? The truth is, today’s databases are anything but agile – they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver on new features and capabilities needed to make your organization competitive. As your application and business needs change, data repositories and structures get outmoded rapidly, resulting in increased work for application developers and slow performance for end users. Further, as data sizes grow into the Big Data realm, this problem is exacerbated and becomes even more difficult to address. A seemingly simple schema change can take hours (or more) to perform, and as requirements evolve the disconnect between existing data structures and actual needs diverge.
SYS-CON Events announced today that SherWeb, a long-time leading provider of cloud services and Microsoft's 2013 World Hosting Partner of the Year, will exhibit at SYS-CON's 14th International Cloud Expo®, which will take place on June 10–12, 2014, at the Javits Center in New York City, New York. A worldwide hosted services leader ranking in the prestigious North American Deloitte Technology Fast 500TM, and Microsoft's 2013 World Hosting Partner of the Year, SherWeb provides competitive cloud solutions to businesses and partners around the world. Founded in 1998, SherWeb is a privately owned company headquartered in Quebec, Canada. Its service portfolio includes Microsoft Exchange, SharePoint, Lync, Dynamics CRM and more.
The world of cloud and application development is not just for the hardened developer these days. In their session at 14th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, and Harold Hannon, Sr. Software Architect at SoftLayer, will pull back the curtain of the architecture of a fun demo application purpose-built for the cloud. They will focus on demonstrating how they leveraged compute, storage, messaging, and other cloud elements hosted at SoftLayer to lower the effort and difficulty of putting together a useful application. This will be an active demonstration and review of simple command-line tools and resources, so don’t be afraid if you are not a seasoned developer.
SYS-CON Events announced today that BUMI, a premium managed service provider specializing in data backup and recovery, will exhibit at SYS-CON's 14th International Cloud Expo®, which will take place on June 10–12, 2014, at the Javits Center in New York City, New York. Manhattan-based BUMI (Backup My Info!) is a premium managed service provider specializing in data backup and recovery. Founded in 2002, the company’s Here, There and Everywhere data backup and recovery solutions are utilized by more than 500 businesses. BUMI clients include professional service organizations such as banking, financial, insurance, accounting, hedge funds and law firms. The company is known for its relentless passion for customer service and support, and has won numerous awards, including Customer Service Provider of the Year and 10 Best Companies to Work For.
Chief Security Officers (CSO), CIOs and IT Directors are all concerned with providing a secure environment from which their business can innovate and customers can safely consume without the fear of Distributed Denial of Service attacks. To be successful in today's hyper-connected world, the enterprise needs to leverage the capabilities of the web and be ready to innovate without fear of DDoS attacks, concerns about application security and other threats. Organizations face great risk from increasingly frequent and sophisticated attempts to render web properties unavailable, and steal intellectual property or personally identifiable information. Layered security best practices extend security beyond the data center, delivering DDoS protection and maintaining site performance in the face of fast-changing threats.
From data center to cloud to the network. In his session at 3rd SDDC Expo, Raul Martynek, CEO of Net Access, will identify the challenges facing both data center providers and enterprise IT as they relate to cross-platform automation. He will then provide insight into designing, building, securing and managing the technology as an integrated service offering. Topics covered include: High-density data center design Network (and SDN) integration and automation Cloud (and hosting) infrastructure considerations Monitoring and security Management approaches Self-service and automation
In his session at 14th Cloud Expo, David Holmes, Vice President at OutSystems, will demonstrate the immense power that lives at the intersection of mobile apps and cloud application platforms. Attendees will participate in a live demonstration – an enterprise mobile app will be built and changed before their eyes – on their own devices. David Holmes brings over 20 years of high-tech marketing leadership to OutSystems. Prior to joining OutSystems, he was VP of Global Marketing for Damballa, a leading provider of network security solutions. Previously, he was SVP of Global Marketing for Jacada where his branding and positioning expertise helped drive the company from start-up days to a $55 million initial public offering on Nasdaq.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 14th Cloud Expo, Marc Jones, Vice President of Product Innovation for SoftLayer, will explain how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Hybrid cloud refers to the federation of a public and private cloud environment for the purpose of extending the elastic and flexibility of compute, storage and network capabilities, in an on-demand, pay-as-you go basis. The hybrid approach allows a business to take advantage of the scalability and cost-effectiveness that a public cloud computing environment offers without exposing mission-critical applications and data to third-party vulnerabilities. Hybrid cloud environments involve complex management challenges. First, organizations struggle to maintain control over the resources that lie outside of their managed IT scope. They also need greater infrastructure visibility to help reduce maintenance costs and ensure that their company data and resources are properly handled and secured.
Are you interested in accelerating innovation, simplifying deployments, reducing complexity, and lowering development costs? The cloud is changing the face of application development and deployment, with enterprise-grade infrastructure and platform services making it possible for you to build and rapidly scale enterprise applications. In his session at 14th Cloud Expo, Gene Eun, Sr. Director, Oracle Cloud at Oracle, will discuss the latest solutions and strategies for application developers and enterprise IT organizations to leverage Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) to build and deploy modern business applications in the cloud.