Click here to close now.

Welcome!

OpenStack Journal Authors: Sanjeev Sharma, Carmen Gonzalez, Pat Romanski, Jason Bloomberg, Michael Kanasoot

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
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Communication) is an open source project supported by Google, Mozilla and Opera that aims to enable bro...
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 session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust IoT ...
"We have seen the evolution of WebRTC right from the starting point to what it has become today, that people are using in real applications," noted Dr. Natasha Tamaskar, Vice President and Head of Cloud and Mobile Strategy and Ecosystem at GENBAND, in this SYS-CON.tv interview at WebRTC Summit, held June 9-11, 2015, at the Javits Center in New York City.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
"In the IoT space we are helping customers, mostly enterprises and industry verticals where time-to-value is critical, and we help them with the ability to do faster insights and actions using our platform so they can transform their business operations," explained Venkat Eswara, VP of Marketing at Vitria, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
WebRTC converts the entire network into a ubiquitous communications cloud thereby connecting anytime, anywhere through any point. In his session at WebRTC Summit,, Mark Castleman, EIR at Bell Labs and Head of Future X Labs, will discuss how the transformational nature of communications is achieved through the democratizing force of WebRTC. WebRTC is doing for voice what HTML did for web content.
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare to be blown away with a glimpse of the future.
Connected things, systems and people can provide information to other things, systems and people and initiate actions for each other that result in new service possibilities. By taking a look at the impact of Internet of Things when it transitions to a highly connected services marketplace we can understand how connecting the right “things” and leveraging the right partners can provide enormous impact to your business’ growth and success. In her general session at @ThingsExpo, Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, discussed how this exciting emergence of layers of...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Among the proven benefits, DevOps is corr...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. 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 Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
SYS-CON Events announced today that kintone has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business application (BYOA) platform, and workflow automation system.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fillin...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and high availability solutions, leveraging the cloud and the benefits of Infrastructure-as-a-Service (IaaS...