NetApp Reports First Quarter Fiscal Year 2018 Results

August 16, 2017 - View Financial Tables (PDF)

Net Revenues of $1.33 Billion; Up 2% Year-over-Year

Product revenue increased 10% year-over-year.

All-flash array annualized net revenue run rate grew 95% year-over-year.

GAAP EPS of $0.49 and non-GAAP EPS of $0.62; up year-over-year 113% and 35%, respectively.

Sunnyvale, Calif.-August 16, 2017-NetApp (NASDAQ: NTAP) today reported financial results for the first quarter fiscal year 2018, ended July 28, 2017.

First Quarter Financial Results

Net revenues for the first quarter of fiscal year 2018 were $1.33 billion, compared to net revenues of $1.29 billion for the comparable period of the prior year. GAAP net income for the first quarter of fiscal year 2018 was $136 million, or $0.49 per share,[1] compared to GAAP net income of $64 million, or $0.23 per share, for the comparable period of the prior year. Non-GAAP net income for the first quarter of fiscal year 2018 was $173 million, or $0.62 per share,[2] compared to non-GAAP net income of $129 million, or $0.46 per share, for the comparable period of the prior year.

Cash, Cash Equivalents and Investments

NetApp ended the first quarter of fiscal year 2018 with $5.3 billion in total cash, cash equivalents and investments. During the first quarter of fiscal year 2018, the Company generated $250 million in cash from operations and returned $204 million to shareholders through share repurchases and a cash dividend.

The Company announced the next cash dividend of $0.20 per share. The quarterly dividend will be paid on October 25, 2017, to shareholders of record as of the close of business on October 6, 2017.

We delivered strong Q1 results across the board and continued to introduce substantial innovation. We are strengthening our leadership position by enhancing our all flash array and converged infrastructure offerings, and augmenting our Data Fabric strategy, said George Kurian, chief executive officer. Customers and industry leaders are excited by our strategic direction and are choosing NetApp as their partner for data-driven digital transformations. We are building on a strong foundation and are, without question, the best positioned and the best executing company in the industry.

Q2 Fiscal Year 2018 Outlook

The Company provided the following financial guidance for the second quarter of fiscal year 2018:

Net revenues are expected to be in the range of $1.31 billion to $1.46 billion

Earnings per share is expected to be in the range of:

GAAP Non-GAAP

$0.47 - $0.55 $0.64 - $0.72

Business Highlights

NetApp Expands Service Provider Programs and Alliances, Leads a New IT Category, and Delivers New Innovations

Expanded Fueled by NetApp Program helps service providers gain access to new consulting and incubator programs, as well as new efficiency guarantees and increased training.

NetApp recognized as a Leader in Gartner Magic Quadrant for Solid-State Arrays.

New FlexPod SF converged infrastructure solution offers ideal infrastructure for the data-intensive scale-out workloads that are critical to digital transformation.

NetApp positioned to capture digital transformation opportunity with leadership in new IDC category of hybrid cloud data services.

NetApp expands collaboration with Microsoft Azure in hybrid cloud data services to deliver enterprise-grade visibility and insights, data access and control, as well as data protection and security for customers moving to Microsoft Azure.

NetApp has provided early access to the innovations of NetApp HCI, planned to be generally available in the second half of calendar 2017, to a number of technology partners that are integrating with the solution.

ONTAP select software-defined storage is optimized for new use cases, including a new remote office/branch office solution and enterprise NAS services in more diverse storage environments.

OnCommand Insight (OCI) adds new functions to ease hybrid cloud migration and optimize hybrid cloud resources with accurate workload placement and resizing.

ONTAP enhancements include the new FabricPool feature for automatic and transparent tiering of inactive data to the cloud; expanded inline deduplication across multiple pools of storage to increase storage efficiency; and new performance controls, including quality of service minimum and intelligent data placement.

With NextCredit, NetApp introduces the industry's most flexible future credit program, allowing customers to upgrade or build out their Data Fabric with new technologies and capabilities as they become available.

StorageGRID Webscale next-generation object storage software simplifies OpenStack storage deployments and supports Docker container deployment on bare-metal servers.

NetApp SnapCenter 3.0 enables customers to restore and recover SAP HANA multitenant database containers.

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, historical supplemental data tables, and other information related to the call will be posted on the Investor Relations website. An audio replay will also be available on the website after 4:30 p.m. Pacific Time today.

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, but are not limited to, all of the statements made under the Q2 Fiscal Year 2018 Outlook section, statements about strengthening our leadership position, enhancing our product offerings, and augmenting our Data Fabric strategy, as well as statements about our ability to capitalize on our position and contin

LINK:	http://www.netapp.com/us/company/news/press-releases/news-rel-20170816...
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