Welcome!

FinTech Journal Authors: Carl J. Levine, Carmen Gonzalez, Bob Gourley, Yeshim Deniz, Liz McMillan

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.

@ThingsExpo Stories
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
"Operations is sort of the maturation of cloud utilization and the move to the cloud," explained Steve Anderson, Product Manager for BMC’s Cloud Lifecycle Management, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...