NetApp Reports Fiscal Year 2014 First Quarter Results

August 14, 2013 - View Financial Tables (PDF)

Achieves Strongest Branded Revenue Growth in 7 Quarters, Up 9% Year-Over-Year

Revenues of $1.516 billion, up 5% year-over-year

Non-GAAP EPS of $0.53, up 26% year-over-year

Cash from Operations of $286 million, up 25% year-over-year

$900 million returned to shareholders in share repurchases and cash dividends

Sunnyvale, Calif.-August 14, 2013-NetApp (NASDAQ: NTAP) today reported financial results for the first quarter of fiscal year 2014 ended July 26, 2013.

First Quarter Financial Results

Total revenues for the first quarter of fiscal year 2014 were $1.516 billion, an increase of 5% from the comparable period of the prior year. GAAP net income for the first quarter of fiscal year 2014 was $82 million, or $0.23 per share[1], compared to GAAP net income of $64 million, or $0.17 per share, for the comparable period of the prior year. Non-GAAP net income for the first quarter of fiscal year 2014 was $192 million, or $0.53 per share[2], compared to non-GAAP net income of $156 million, or $0.42 per share, for the first quarter of fiscal 2013.

Cash, Cash Equivalents and Investments

NetApp ended the first quarter of 2014 with $5.084 billion of total cash, cash equivalents and investments and during the quarter generated approximately $286 million in cash from operations. The company returned $900 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 October 25, 2013 to shareholders of record as of the close of business on October 21, 2013.

NetApp delivered solid results and innovation with the latest release to our clustered Data ONTAP operating system, said Tom Georgens, president and CEO. Despite an uneven macro environment, our branded business was strong, with 9% year-over-year growth. This is evidence of the tremendous value we are delivering to customers today and their confidence in our long-term strategy to enable them to navigate the future.

Q2 Fiscal Year 2014 Outlook

The Company provided the following financial guidance for the second quarter of fiscal year 2014:

Total revenue is expected to be in the range of $1.560 billion to $1.660 billion

GAAP earnings per share is expected to be in the range of $0.41 to $0.46 per share

Non-GAAP earnings per share is expected to be in the range of $0.60 to $0.65 per share

Diluted shares[3] outstanding of approximately 351 million shares

Business Highlights

In its first quarter of fiscal year 2014, NetApp delivered technology innovation focused on helping customers capitalize on cloud and mobility trends, while also strengthening its strategic relationships with industry-leading partners. Highlights include:

NetApp Introduces Data ONTAP 8.2. New enhancements to clustered Data ONTAP 8.2 provide organizations and cloud service providers the capability to rapidly and cost effectively deliver new services and capacity with maximum application uptime. Clustered Data ONTAP delivers native multi-tenant, policy-based storage services via programmable APIs and application integrations that are core tenants of a software-defined storage environment.

NetApp Connect Delivers Mobile Access with Enterprise Level Data Protection. By keeping all data securely behind the corporate firewall, NetApp Connect offers mobile access to corporate data while maintaining the tight security and control that enterprise IT requires for keeping its data and business protected.

NetApp and Cisco Expand the FlexPod Platform. In a continuing effort to make data center infrastructures more responsive to applications' dynamic needs, Cisco and NetApp broadened the FlexPod portfolio with a new offering called FlexPod Select and introduced new validated designs across the entire suite. FlexPod Select components include NetApp E-Series and FAS storage systems.

NetApp Teams up with Microsoft to Accelerate Cloud Deployments. NetApp will invest $15 million in new ecosystem sales collaboration and continued technology integration with Microsoft to accelerate the adoption of enterprise cloud deployments.

Clustered Data ONTAP integrates with Citrix Technologies. New solution integrations from NetApp and Citrix combine the benefits of clustered Data ONTAP with Citrix technologies for desktop and application virtualization, mobile collaboration, and cloud services.

Microsoft's Server Platform Partner of the Year. NetApp was named Microsoft's Server Platform Partner of the Year for innovative storage solutions that enable nondisruptive operations and deliver optimal operational efficiency for virtualized environments and file services.

Editor's Note

Financial information previously found in the Supplemental Commentary document will now be included in the accompanying Supplemental Data tables of the quarterly financial press release.

In addition, historical supplemental data tables, providing historical multi-period financial information, will be available on our investor relations website at investors.netapp.com.

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 any 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.

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

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