Click here to close now.

Welcome!

OpenStack Journal Authors: Roger Strukhoff, Mike Kavis, Lori MacVittie, VictorOps Blog, Ruxit Blog

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
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
HP and Aruba Networks on Monday announced a definitive agreement for HP to acquire Aruba, a provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0 billion, and net of cash and debt approximately $2.7 billion. Both companies' boards of directors have approved the deal. "Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT," said Meg Whitman, Chairman, President and Chief Executive Officer of HP...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add scalable realtime functionality with minimal effort and cost.”
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
In the consumer IoT, everything is new, and the IT world of bits and bytes holds sway. But industrial and commercial realms encompass operational technology (OT) that has been around for 25 or 50 years. This grittier, pre-IP, more hands-on world has much to gain from Industrial IoT (IIoT) applications and principles. But adding sensors and wireless connectivity won’t work in environments that demand unwavering reliability and performance. In his session at @ThingsExpo, Ron Sege, CEO of Echelon, will discuss how as enterprise IT embraces other IoT-related technology trends, enterprises with i...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data they generate about customer usage and product performance to deliver extremely compelling and reliabl...
The Internet of Things (IoT) is causing data centers to become radically decentralized and atomized within a new paradigm known as “fog computing.” To support IoT applications, such as connected cars and smart grids, data centers' core functions will be decentralized out to the network's edges and endpoints (aka “fogs”). As this trend takes hold, Big Data analytics platforms will focus on high-volume log analysis (aka “logs”) and rely heavily on cognitive-computing algorithms (aka “cogs”) to make sense of it all.
With several hundred implementations of IoT-enabled solutions in the past 12 months alone, this session will focus on experience over the art of the possible. Many can only imagine the most advanced telematics platform ever deployed, supporting millions of customers, producing tens of thousands events or GBs per trip, and hundreds of TBs per month. With the ability to support a billion sensor events per second, over 30PB of warm data for analytics, and hundreds of PBs for an data analytics archive, in his session at @ThingsExpo, Jim Kaskade, Vice President and General Manager, Big Data & Ana...
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been involved at the beginning of four IT industries: EDA, Open Systems, Computer Security and now SOA.
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...