Company Reports Q4 FY’12 Revenues of $1.70 Billion; Fiscal Year Revenues of $6.23 Billion, Up 22% Year Over Year

Sunnyvale, Calif.- May 23, 2012- NetApp (NASDAQ: NTAP) today reported results for thefourth quarter and fiscal year 2012, which ended April 27, 2012.Revenues for the fourth quarter of fiscal year 2012 totaled $1.70billion, up 19% compared to revenues of $1.43 billion for the sameperiod one year ago.

 

For the fourth quarter of fiscal year 2012,GAAP net income was $181 million, or $0.47 per share[1], compared to GAAP net income of$161 million, or $0.40 per share, for the same period a year ago.Non-GAAP net income for the fourth quarter of fiscal year 2012 was$252 million, or $0.66 per share[2], compared to non-GAAP net income of $237million, or $0.59 per share for the same period a year ago.

 

Revenues for fiscal year 2012 totaled $6.23billion, up 22% compared to revenues of $5.12 billion for fiscalyear 2011. GAAP net income for fiscal year 2012 totaled $605million, or $1.58 per share, compared to GAAP net income of $673million, or $1.71 per share for fiscal year 2011. Non-GAAP netincome for fiscal year 2012 totaled $926 million, or $2.41 pershare, compared to non-GAAP net income of $866 million, or $2.20per share for fiscal year 2011.

 

“With a strong product offering and wellestablished partner ecosystem, NetApp delivered our ninthconsecutive quarter of over 20% year-over-year product revenuegrowth. Our ability to generate cash remains robust as the fourthquarter was our best ever quarter in terms of cash flow fromoperations,” said Tom Georgens, president and CEO. “As theinnovation leader in the industry, and the only company offering aunified scale out platform, we are the clear choice for enterprisesas they re-architect their data centers to provide agility whilereducing complexity and cost.”

 

Outlook
NetApp’s outlook for the first quarter of fiscal year 2013 reflectsthe normal slower seasonality of the first quarter and increasinguncertainty in the broader macro environment.

  • NetApp estimates revenue for the first quarter of fiscal year2013 to be in the range of $1.40 billion to $1.50 billion, whichequates to a sequential decline of approximately 12% to 18% and ayear-over-year decline of approximately 4% to an increase of3%.
  • NetApp estimates that first quarter fiscal year 2013 GAAPearnings per share will be approximately $0.10 to $0.15 per share.NetApp estimates that first quarter fiscal year 2013 non-GAAPearnings per share will be approximately $0.34 to $0.39 pershare.
  • NetApp estimates that share count for the first quarter offiscal year 2013 will decrease to approximately 380 million shares,including an estimated 7 million shares from the Company’soutstanding convertible notes.[3] Share count does not include the Company’soutstanding note hedges which are expected to offset 80% of thedilution from the convertible notes at maturity or conversion.

Business Highlights
In its fourth quarter of fiscal year 2012, NetApp innovationprovided customers and partners with the storage foundation that isenabling them to capitalize on data to help grow their business.During the quarter, NetApp and Cisco built on the impressivemomentum of the FlexPod® design architecture by unveiling newarchitectures to allow customers and partners to accelerate theirtransition to the cloud. Additionally, customers around the worldcontinued to use NetApp® storage efficiency technologies toleverage existing investments, significantly reduce costs, and helpsupport growth. Highlights during the quarter include thefollowing:

 

More Than 850 Customers Build on theNetApp and Cisco FlexPod Architecture to Leverage theCloud

  • NetApp and Cisco unveil new FlexPod architecture optimized forsmaller workloads. New FlexPod design architectures priced andsized for smaller workloads with 500-1,000 users allow customers toinvest only in the infrastructure they require and enable simpleand rapid scaling to meet growing demands as their business needschange. With the new entry-level FlexPod solution, customers areable to maximize their investments with the ability to easily scalearchitectures by simply adding incremental capacity as their needsgrow for larger application workloads.
  • NetApp and Cisco help customers accelerate transition toMicrosoft private cloud with new validated FlexPod solution. Thenew FlexPod design architecture for the Microsoft® privatecloud is designed to meet growing demand for choice and flexibilityas more customers transition to the cloud. The new designarchitecture helps customers reduce infrastructure and applicationdeployment time from days to hours while helping achieve greaterutilization of physical and virtual resource pools. Additionally,FlexPod is the first validated data center infrastructure tosupport Microsoft System Center 2012.

SOFTBANK Utilizes NetApp Technologyto Help Transform IT Infrastructure and Contribute to Japan’sRecovery Process Following 2011 Earthquake and Tsunami

  • By leveraging NetApp technology to consolidate and transformits entire IT organization, SOFTBANK Group was able to deliver arange of internal and external cloud services called White Cloudthat served as a catalyst for the company’s continued growth andsuccess. Its newly transformed IT infrastructure also enabled thecompany to deliver several of its cloud service offerings either athighly discounted rates or free of charge to businesses, publicagencies, and nonprofit organizations just days after the disaster.Additionally, SOFTBANK Group was able to extend its internalvirtual desktop service to 14,000 of its displaced employees in amatter of weeks rather than the originally planned one-yeartimeline.

Customers Can Harness Big DataEnvironments with Enhanced NetApp E-Series Platform

  • New enhancements to the E-Series platform enable NetApp’secosystem of OEM partners to more effectively serve theircustomers’ growing big data requirements and serve as the platformfor many of NetApp’s own big data solutions. The enhanced platformprovides improved management capabilities along with new dataprotection technology to help customers optimize overallperformance.

Awards and Milestones

  • Customers, Partners and Employees Help NetApp Make ItsDebut on FORTUNE 500 List
    NetApp was named a FORTUNE 500 company by FORTUNE Magazine, theannual ranking of America’s largest publicly and privately-heldcompanies for which revenues are publicly available. NetApp’sinclusion was based on the company’s fiscal year 2011 revenue of$5.1 billion. The ranking marks the latest milestone in NetApp’shistory and is further testament to the value that NetApp deliversto its customers, partners, shareholders, and employees.
  • 20 Years of Innovation Drive Customer and PartnerSuccess
    April 2012 marked a major milestone for NetApp as the companycelebrated its 20th anniversary. What began in 1992 with an ideasketched on a placemat has grown into an industry-leading $6B+company with over 12,000 employees who are committed to building amodel company. NetApp’s 20-year achievement is a result of thevision of NetApp’s founders, the dedication of its employees, thestrength of its partnerships, and the success of all its customers.Innovation has driven NetApp’s growth throughout its history, andthis spirit of innovation remains strong as the company looksforward to continuing to help customers in the future.
  • NetApp Continues to Earn Recognition as a Great Placeto Work
    Built on a culture of innovation committed to partner and customersuccess, NetApp was ranked #4 on Crain’s Chicago Business’s 2012 “Best Places to Work” list. The annual list recognized NetApp asthe region’s highest-ranked technology employer.
  • NetApp Awarded 5-Star Partner Rating in CRN’s 2012Partner Programs Guide
    NetApp’s commitment to its partners’ success is core to thecompany’s overall growth strategy. The CRN 5-Star Partner rating isfurther validation that NetApp’s channel program is one of the bestin the market today.

Webcast and Conference CallInformation
The NetApp fourth quarter and fiscal year 2012 results conferencecall will be broadcast live on the Internet at investors.netapp.com onWednesday, May 23, 2012, at 2:30 p.m. Pacific Time. This pressrelease and any other information related to the call will also beposted on the Web site at that location. An audio replay Webcastwill be available after 4:30 p.m. Pacific Time on the Web site.

 

NetApp uses a hybrid format for disclosingkey financial information associated with our quarterly results.Concurrent with the press release, NetApp posts a supplementalcommentary with financial information and statistics to our Website at investors.netapp.com.

 

About NetApp
NetApp creates innovative storage and data management solutionsthat deliver outstanding cost efficiency and accelerate businessbreakthroughs. Discover our passion for helping companies aroundthe world go further, faster at www.netapp.com.

 

PressContact: InvestorContact:
Ryan Lowry
NetApp
(408) 822-7544
ryanl@netapp.com
ShaunaO’Boyle
NetApp
(408) 822-7655
oboyle@netapp.com

NetApp, the NetApp logo, and Go further,faster, are trademarks or registered trademarks of NetApp, Inc. Allother marks are the property of their respective owners and shouldbe treated as such.

 

“Safe Harbor” Statement Under U.S.Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995.These statements include all of the statements under the Outlooksection relating to our forecasts for the first quarter of fiscalyear 2013 and expected benefits our customers may realize from ourproducts and partnerships, all of which involve risk anduncertainty. Actual results may differ materially from ourstatements and projections for a variety of reasons, includinggeneral economic and market conditions, such as the macroeconomicenvironment and the flooding in Thailand, and matters specific toour business, such as customer demand for and acceptance of ourproducts and services. These and other equally important factorsare described in reports and documents we file from time to timewith the Securities and Exchange Commission (SEC), including thefactors described under the sections titled “Risk Factors” in ourmost recently submitted Annual and Quarterly Reports on Forms 10-Kand 10-Q, respectively. We disclaim any obligation to updateinformation contained in these forward-looking statements whetheras a result of new information, future events, or otherwise.

 

NetApp Usage of Non-GAAPFinancials
The Company refers to the non-GAAP financial measures cited abovein making operating decisions because they provide meaningfulsupplemental information regarding the Company’s ongoingoperational performance. Non-GAAP net income excludes theamortization of intangible assets, stock-based compensation,acquisition-related income and expenses, restructuring and othercharges, asset impairments, non-cash interest expense associatedwith our convertible debt, net losses or gains on investments, andour GAAP tax provision, but includes a non-GAAP tax provision basedupon our projected annual non-GAAP effective tax rate for the firstthree quarters of the fiscal year and an actual non-GAAP taxprovision for the fourth quarter of the fiscal year. We haveexcluded these items in order to enhance investors’ understandingof our ongoing operations. The use of these non-GAAP financialmeasures has material limitations because they should not be usedto evaluate our Company without reference to their correspondingGAAP financial measures. As such, we compensate for these materiallimitations by using these non-GAAP financial measures inconjunction with GAAP financial measures.

 

These non-GAAP financial measures are usedto: (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 bymanagement in financial and operational decision making. Inaddition, these non-GAAP financial measures are used to measureCompany performance for the purposes of determining employeeincentive plan compensation. We have historically reported similarnon-GAAP financial measures to our investors and believe that theinclusion of comparative numbers provides consistency in ourfinancial reporting at this time.

 

[1]GAAP earnings per share is calculated usingthe diluted number of shares for all periods presented.

 

[2]Non-GAAP net income excludes the amortizationof intangible assets, stock-based compensation, acquisition-relatedincome and expenses, restructuring and other charges, assetimpairments, non-cash interest expense associated with ourconvertible debt, net losses or gains on investments, and our GAAPtax provision, but includes a non-GAAP tax provision based upon ourprojected annual non-GAAP effective tax rate for the first threequarters of the fiscal year and an actual non-GAAP tax provisionfor the fourth quarter of the fiscal year. Non-GAAP earnings pershare is calculated using the diluted number of shares for allperiods presented.

 

[3]80% hedged on maturity or conversion of theconvertible notes.

 

NetApp Staff