NetApp Reports Fourth Quarter and Fiscal Year 2014 Results
Achieves Fourth Quarter and Full Fiscal Year Non-GAAP Earnings
per Share Growth of 22% Year Over Year
SUNNYVALE, CA--(Marketwired - May 21, 2014) - NetApp (NASDAQ:
NTAP)
- Net revenues for Q4 of $1.649 billion; $6.325 billion for
fiscal year 2014
- Branded revenue for fiscal year 2014 grew 4% year over
year
- Cash from operations for fiscal year 2014 of $1.350 billion;
free cash flow 18% of revenue
NetApp (NASDAQ: NTAP) today reported financial results for the
fourth quarter and fiscal year 2014, ended April 25, 2014.
Fourth Quarter Financial Results Net revenues for the fourth
quarter of fiscal year 2014 were $1.649 billion. GAAP net income
for the fourth quarter of fiscal year 2014 was $197 million, or
$0.59 per share,1 compared to GAAP net income of $174 million, or
$0.47 per share, for the comparable period of the prior year.
Non-GAAP net income for the fourth quarter of fiscal year 2014 was
$284 million, or $0.84 per share,2 compared to non-GAAP net income
of $253 million, or $0.69 per share, for the comparable period of
the prior year.
Fiscal Year 2014 Financial Results Net revenues for fiscal year
2014 were $6.325 billion. GAAP net income for fiscal year 2014 was
$638 million, or $1.83 per share,1 compared to GAAP net income of
$505 million, or $1.37 per share, for the comparable period of the
prior year. Non-GAAP net income for fiscal year 2014 was $968
million, or $2.78 per share,2 compared to non-GAAP net income of
$841 million, or $2.28 per share, for the comparable period of the
prior year.
Cash, Cash Equivalents, and Investments NetApp ended fiscal year
2014 with $5.003 billion of total cash, cash equivalents, and
investments and generated $1.350 billion in cash from operations.
During fiscal year 2014, the Company returned $2.084 billion to
shareholders through share repurchases and cash dividends.
The Company increased the next dividend to $0.165 per share to
be paid on July 22, 2014 to shareholders of record as of the close
of business on July 10, 2014.
"NetApp saw market share gains and delivered a solid operational
performance in fiscal year 2014, highlighted by margin expansion
and strong cash generation," said Tom Georgens, Chairman and CEO.
"With solutions like clustered Data ONTAP, our broad flash
portfolio and differentiated approach to the cloud, customers are
solving the challenges of today, with innovative solutions that
pave the way for the future."
Q1 Fiscal Year 2015 Outlook The Company provides the following
financial guidance for the first quarter of fiscal year 2015:
- Net revenues are expected to be in the range of $1.420 billion
to $1.520 billion
- GAAP earnings per share is expected to be in the range of $0.32
to $0.37 per share
- Non-GAAP earnings per share is expected to be in the range of
$0.53 to $0.58 per share
Business Highlights In its fourth quarter of fiscal year 2014,
NetApp continued to help global enterprises achieve success with
one of the industry's broadest portfolios of flash-accelerated,
cloud-integrated storage and data management solutions. Its
industry-leading enterprise storage systems and software meet
customer needs across a wide range of application workloads.
Highlights include:
- NetApp Introduces Unified Scale-Out Storage Systems for the
Hybrid Cloud Era. The new FAS8000 series unified storage systems
are NetApp's most powerful and feature-rich scale-out storage
systems with superior flexibility to simplify complex upgrades as
IT needs change.
- NetApp Introduces FlexArray Virtualization Software. With new
FlexArray virtualization software, NetAppĀ® V-Series becomes a
software option that can be licensed on the FAS8000 to virtualize
and manage multivendor data storage platforms, paving the way for
software-defined storage.
- NetApp Announces the Latest Release of Clustered Data ONTAPĀ®.
The latest release of the clustered Data ONTAP operating system,
version 8.2.1, helps organizations seamlessly scale out operations
and manage data consistently, without disruption across both
private and public cloud environments.
- NetApp Teams with SAP to Set New Record for World's Largest
Data Warehouse. SAP announced that it teamed with partners,
including NetApp, to generate a world record for the largest data
warehouse. The NetApp E5460 storage system was chosen for its
ability to handle large data volumes, enormous throughput
requirements, consistent high performance and availability demands,
all at the same time.
- NetApp Again Honored as a Channel Champion. CRN's 24th annual
Channel Champions awards highlights vendor partners voted to be the
best-of-the-best by the solutions providers for 2014. NetApp moved
into the No. 2 position on this year's list in the Enterprise
Network Storage category.
Webcast and Conference Call Information NetApp will host a
conference call to discuss these results today at 2:00 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 on the website after 4:00 p.m. Pacific Time
today.
Historical supplemental data tables, providing historical
multi-period financial information, are also 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 Q1 Fiscal Year 2015 Outlook section relating to the
financial guidance for the first quarter of fiscal year 2015; the
benefits to us and our customers of our products and services,
including clustered Data ONTAP and our flash storage solutions. 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 and changes
in storage consumption models. 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.
1GAAP earnings per share is calculated using the diluted number
of shares for all periods presented.
2Non-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.
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) |
|
|
|
|
|
|
|
April 25, 2014 |
|
April 26, 2013 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash, cash equivalents and investments |
|
$ |
5,003.3 |
|
$ |
6,952.6 |
|
Accounts receivable, net |
|
|
855.9 |
|
|
800.9 |
|
Inventories |
|
|
122.4 |
|
|
139.5 |
|
Other current assets |
|
|
489.7 |
|
|
525.2 |
|
|
Total current assets |
|
|
6,471.3 |
|
|
8,418.2 |
|
|
|
|
|
|
|
Property and equipment, net |
|
|
1,108.8 |
|
|
1,170.9 |
Goodwill and purchased intangible assets, net |
|
|
1,109.6 |
|
|
1,168.7 |
Other non-current assets |
|
|
529.5 |
|
|
484.6 |
|
|
|
Total
assets |
|
$ |
9,219.2 |
|
$ |
11,242.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
247.0 |
|
$ |
259.7 |
|
Accrued compensation and other current liabilities |
|
|
793.8 |
|
|
749.8 |
|
Current portion of long-term debt |
|
|
- |
|
|
1,257.8 |
|
Short-term deferred revenue |
|
|
1,653.8 |
|
|
1,563.3 |
|
|
Total current liabilities |
|
|
2,694.6 |
|
|
3,830.6 |
|
|
|
|
|
|
|
Long-term debt |
|
|
995.5 |
|
|
994.6 |
Other long-term liabilities |
|
|
296.2 |
|
|
253.5 |
Long-term deferred revenue |
|
|
1,446.4 |
|
|
1,446.2 |
|
|
Total liabilities |
|
|
5,432.7 |
|
|
6,524.9 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
3,786.5 |
|
|
4,717.5 |
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
9,219.2 |
|
$ |
11,242.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETAPP, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(In millions, except per share amounts) |
|
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
April 25, 2014 |
|
|
April 26, 2013 |
|
|
April 25, 2014 |
|
|
April 26, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
1,042.8 |
|
|
$ |
1,137.8 |
|
|
$ |
3,943.9 |
|
|
$ |
4,092.3 |
|
|
Software entitlements and maintenance |
|
|
227.5 |
|
|
|
227.0 |
|
|
|
914.8 |
|
|
|
893.5 |
|
|
Service |
|
|
378.7 |
|
|
|
351.7 |
|
|
|
1,466.4 |
|
|
|
1,346.6 |
|
|
|
Net
revenues |
|
|
1,649.0 |
|
|
|
1,716.5 |
|
|
|
6,325.1 |
|
|
|
6,332.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product |
|
|
453.2 |
|
|
|
517.9 |
|
|
|
1,777.1 |
|
|
|
1,959.9 |
|
|
Cost of software entitlements and maintenance |
|
|
8.0 |
|
|
|
7.4 |
|
|
|
30.7 |
|
|
|
28.3 |
|
|
Cost of service |
|
|
145.8 |
|
|
|
159.0 |
|
|
|
598.2 |
|
|
|
583.1 |
|
|
Total cost of revenues |
|
|
607.0 |
|
|
|
684.3 |
|
|
|
2,406.0 |
|
|
|
2,571.3 |
|
|
|
Gross
profit |
|
|
1,042.0 |
|
|
|
1,032.2 |
|
|
|
3,919.1 |
|
|
|
3,761.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
475.0 |
|
|
|
510.2 |
|
|
|
1,898.2 |
|
|
|
1,974.8 |
|
|
Research and development |
|
|
230.7 |
|
|
|
243.4 |
|
|
|
917.3 |
|
|
|
904.2 |
|
|
General and administrative |
|
|
73.7 |
|
|
|
74.2 |
|
|
|
281.0 |
|
|
|
272.6 |
|
|
Restructuring and other charges |
|
|
38.8 |
|
|
|
- |
|
|
|
88.3 |
|
|
|
- |
|
|
Acquisition-related expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1.7 |
|
|
|
Total
operating expenses |
|
|
818.2 |
|
|
|
827.8 |
|
|
|
3,184.8 |
|
|
|
3,153.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
223.8 |
|
|
|
204.4 |
|
|
|
734.3 |
|
|
|
607.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income/(expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
8.5 |
|
|
|
10.1 |
|
|
|
34.9 |
|
|
|
42.2 |
|
|
Interest expense |
|
|
(6.4 |
) |
|
|
(28.0 |
) |
|
|
(36.1 |
) |
|
|
(91.7 |
) |
|
Other income, net |
|
|
0.7 |
|
|
|
2.4 |
|
|
|
7.6 |
|
|
|
8.3 |
|
|
|
Total
other income/(expense), net |
|
|
2.8 |
|
|
|
(15.5 |
) |
|
|
6.4 |
|
|
|
(41.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
226.6 |
|
|
|
188.9 |
|
|
|
740.7 |
|
|
|
566.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
29.6 |
|
|
|
15.1 |
|
|
|
103.2 |
|
|
|
61.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
197.0 |
|
|
$ |
173.8 |
|
|
$ |
637.5 |
|
|
$ |
505.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.60 |
|
|
$ |
0.48 |
|
|
$ |
1.87 |
|
|
$ |
1.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.59 |
|
|
$ |
0.47 |
|
|
$ |
1.83 |
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in net income per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
330.2 |
|
|
|
358.6 |
|
|
|
340.3 |
|
|
|
361.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
336.4 |
|
|
|
368.2 |
|
|
|
347.9 |
|
|
|
368.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share |
|
$ |
0.15 |
|
|
$ |
- |
|
|
$ |
0.60 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETAPP, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
|
(In millions) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
|
April 25, 2014 |
|
|
April 26, 2013 |
|
|
April 25, 2014 |
|
|
April 26, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
197.0 |
|
|
$ |
173.8 |
|
|
$ |
637.5 |
|
|
$ |
505.3 |
|
|
Adjustments to reconcile net income to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
82.1 |
|
|
|
89.1 |
|
|
|
334.1 |
|
|
|
344.6 |
|
|
|
Stock-based compensation |
|
|
67.2 |
|
|
|
65.1 |
|
|
|
273.0 |
|
|
|
276.6 |
|
|
|
Accretion of discount and issuance costs on debt |
|
|
0.5 |
|
|
|
16.2 |
|
|
|
9.7 |
|
|
|
60.2 |
|
|
|
Excess tax benefit from stock-based compensation |
|
|
(19.1 |
) |
|
|
(19.9 |
) |
|
|
(52.5 |
) |
|
|
(72.9 |
) |
|
|
Other, net |
|
|
(26.8 |
) |
|
|
2.3 |
|
|
|
(58.4 |
) |
|
|
(6.0 |
) |
|
Changes in assets and liabilities, net of acquired
businesses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(270.0 |
) |
|
|
(170.0 |
) |
|
|
(56.6 |
) |
|
|
23.1 |
|
|
|
Inventories |
|
|
(4.3 |
) |
|
|
33.4 |
|
|
|
17.0 |
|
|
|
22.0 |
|
|
|
Accounts payable |
|
|
57.7 |
|
|
|
41.1 |
|
|
|
(12.1 |
) |
|
|
25.1 |
|
|
|
Accrued compensation and other current liabilities |
|
|
126.8 |
|
|
|
88.6 |
|
|
|
32.3 |
|
|
|
53.5 |
|
|
|
Deferred revenue |
|
|
133.6 |
|
|
|
135.4 |
|
|
|
106.6 |
|
|
|
198.1 |
|
|
|
Changes in other operating assets and liabilities,
net |
|
|
24.8 |
|
|
|
0.5 |
|
|
|
119.0 |
|
|
|
(43.3 |
) |
|
|
|
Net cash provided by operating activities |
|
|
369.5 |
|
|
|
455.6 |
|
|
|
1,349.6 |
|
|
|
1,386.3 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemptions (purchases) of investments, net |
|
|
212.3 |
|
|
|
(27.1 |
) |
|
|
975.0 |
|
|
|
177.0 |
|
|
Purchases of property and equipment |
|
|
(56.0 |
) |
|
|
(63.6 |
) |
|
|
(221.4 |
) |
|
|
(303.3 |
) |
|
Acquisitions of businesses, net of cash acquired |
|
|
- |
|
|
|
(17.1 |
) |
|
|
- |
|
|
|
(106.5 |
) |
|
Other investing activities, net |
|
|
4.2 |
|
|
|
1.2 |
|
|
|
6.8 |
|
|
|
4.2 |
|
|
|
Net cash provided by (used in) investing
activities |
|
|
160.5 |
|
|
|
(106.6 |
) |
|
|
760.4 |
|
|
|
(228.6 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock |
|
|
9.6 |
|
|
|
15.1 |
|
|
|
201.4 |
|
|
|
110.6 |
|
|
Repurchase of common stock and forward contract |
|
|
(374.5 |
) |
|
|
(180.0 |
) |
|
|
(1,881.5 |
) |
|
|
(590.0 |
) |
|
Excess tax benefit from stock-based compensation |
|
|
19.1 |
|
|
|
19.9 |
|
|
|
52.5 |
|
|
|
72.9 |
|
|
Repayment of debt |
|
|
- |
|
|
|
- |
|
|
|
(1,264.9 |
) |
|
|
- |
|
|
Issuance of long-term debt, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
987.3 |
|
|
Dividends paid |
|
|
(49.2 |
) |
|
|
- |
|
|
|
(202.3 |
) |
|
|
- |
|
|
Other financing activities, net |
|
|
(1.7 |
) |
|
|
(1.2 |
) |
|
|
(9.2 |
) |
|
|
(1.9 |
) |
|
|
Net cash provided by (used in) financing
activities |
|
|
(396.7 |
) |
|
|
(146.2 |
) |
|
|
(3,104.0 |
) |
|
|
578.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents |
|
|
5.0 |
|
|
|
(7.4 |
) |
|
|
7.9 |
|
|
|
(9.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
|
138.3 |
|
|
|
195.4 |
|
|
|
(986.1 |
) |
|
|
1,727.3 |
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
2,152.7 |
|
|
|
3,081.7 |
|
|
|
3,277.1 |
|
|
|
1,549.8 |
|
|
End of period |
|
$ |
2,291.0 |
|
|
$ |
3,277.1 |
|
|
$ |
2,291.0 |
|
|
$ |
3,277.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETAPP, INC. |
|
|
SUPPLEMENTAL DATA |
|
|
(In millions except net income per share, percentages,
DSO and Inventory Turns) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FY'14 |
|
Q3 FY'14 |
|
Q4 FY'13 |
|
FY 2014 |
|
FY 2013 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Revenue |
|
$ |
1,042.8 |
|
$ |
1,015.0 |
|
$ |
1,137.8 |
|
$ |
3,943.9 |
|
$ |
4,092.3 |
Software Entitlements & Maintenance Revenue
(SEM) |
|
|
227.5 |
|
|
227.0 |
|
|
227.0 |
|
|
914.8 |
|
|
893.5 |
Service Revenue: |
|
|
378.7 |
|
|
368.0 |
|
|
351.7 |
|
|
1,466.4 |
|
|
1,346.6 |
|
Hardware Maintenance Support Contracts
Revenue |
|
|
293.7 |
|
|
285.9 |
|
|
262.9 |
|
|
1,129.6 |
|
|
991.8 |
|
Professional & Other Services Revenue |
|
|
85.0 |
|
|
82.1 |
|
|
88.8 |
|
|
336.7 |
|
|
354.8 |
|
|
Net
Revenues |
|
$ |
1,649.0 |
|
$ |
1,610.0 |
|
$ |
1,716.5 |
|
$ |
6,325.1 |
|
$ |
6,332.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded and OEM Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FY'14 |
|
Q3 FY'14 |
|
Q4 FY'13 |
|
FY 2014 |
|
FY 2013 |
Branded Revenue |
|
$ |
1,539.2 |
|
$ |
1,452.7 |
|
$ |
1,551.0 |
|
$ |
5,740.4 |
|
$ |
5,545.2 |
OEM Revenue |
|
|
109.8 |
|
|
157.3 |
|
|
165.5 |
|
|
584.7 |
|
|
787.2 |
|
|
Net
Revenues |
|
$ |
1,649.0 |
|
$ |
1,610.0 |
|
$ |
1,716.5 |
|
$ |
6,325.1 |
|
$ |
6,332.4 |
|
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 Q4 FY'14 Revenue |
|
|
% of Q3 FY'14 Revenue |
|
|
% of Q4 FY'13 Revenue |
|
|
% of FY 2014 Revenue |
|
|
% of FY 2013 Revenue |
|
Americas* |
|
56 |
% |
|
52 |
% |
|
57 |
% |
|
56 |
% |
|
56 |
% |
|
|
Americas Commercial |
|
43 |
% |
|
43 |
% |
|
45 |
% |
|
43 |
% |
|
43 |
% |
|
|
U.S. Public Sector |
|
12 |
% |
|
9 |
% |
|
12 |
% |
|
12 |
% |
|
13 |
% |
EMEA |
|
31 |
% |
|
34 |
% |
|
30 |
% |
|
31 |
% |
|
30 |
% |
Asia Pacific |
|
13 |
% |
|
14 |
% |
|
13 |
% |
|
14 |
% |
|
13 |
% |
|
|
|
* |
|
Americas Commercial and USPS revenue for Q4 FY'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 Q4 FY'14 Revenue |
|
|
% of Q3 FY'14 Revenue |
|
|
% of Q4 FY'13 Revenue |
|
|
% of FY 2014 Revenue |
|
|
% of FY 2013 Revenue |
|
Direct |
|
17 |
% |
|
17 |
% |
|
19 |
% |
|
18 |
% |
|
19 |
% |
Indirect |
|
83 |
% |
|
83 |
% |
|
81 |
% |
|
82 |
% |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FY'14 |
|
|
Q3 FY'14 |
|
|
Q4 FY'13 |
|
|
FY 2014 |
|
|
FY 2013 |
|
Non-GAAP Gross Margin |
|
|
64.4 |
% |
|
|
63.5 |
% |
|
|
61.3 |
% |
|
|
63.2 |
% |
|
|
60.7 |
% |
|
Product |
|
|
58.0 |
% |
|
|
57.1 |
% |
|
|
55.8 |
% |
|
|
56.5 |
% |
|
|
53.6 |
% |
|
Software Entitlements & Maintenance (SEM) |
|
|
96.5 |
% |
|
|
96.6 |
% |
|
|
96.7 |
% |
|
|
96.6 |
% |
|
|
96.8 |
% |
|
Service |
|
|
62.7 |
% |
|
|
60.8 |
% |
|
|
56.2 |
% |
|
|
60.5 |
% |
|
|
58.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income from Operations, Income before Income Taxes &
Effective Tax Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FY'14 |
|
|
Q3 FY'14 |
|
|
Q4 FY'13 |
|
|
FY 2014 |
|
|
FY 2013 |
|
Non-GAAP Income from Operations |
|
$ |
344.4 |
|
|
$ |
313.3 |
|
|
$ |
291.0 |
|
|
$ |
1,154.7 |
|
|
$ |
971.9 |
|
|
% of
Net Revenue |
|
|
20.9 |
% |
|
|
19.5 |
% |
|
|
17.0 |
% |
|
|
18.3 |
% |
|
|
15.3 |
% |
Non-GAAP Income before Income Taxes |
|
$ |
347.2 |
|
|
$ |
316.2 |
|
|
$ |
291.7 |
|
|
$ |
1,169.3 |
|
|
$ |
990.2 |
|
Non-GAAP Effective Tax Rate |
|
|
18.1 |
% |
|
|
17.6 |
% |
|
|
13.4 |
% |
|
|
17.2 |
% |
|
|
15.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FY'14 |
|
|
Q3 FY'14 |
|
|
Q4 FY'13 |
|
|
FY 2014 |
|
|
FY 2013 |
|
Non-GAAP Net Income |
|
$ |
284.2 |
|
|
$ |
260.6 |
|
|
$ |
252.5 |
|
|
$ |
968.2 |
|
|
$ |
840.6 |
|
Weighted Average Common Shares Outstanding,
Diluted |
|
|
336.4 |
|
|
|
346.2 |
|
|
|
368.2 |
|
|
|
347.9 |
|
|
|
368.0 |
|
Non-GAAP Net Income per Share, Diluted |
|
$ |
0.84 |
|
|
$ |
0.75 |
|
|
$ |
0.69 |
|
|
$ |
2.78 |
|
|
$ |
2.28 |
|
|
|
|
Included in the diluted weighted average common shares
outstanding are 3.2 million, 1.4 million and 1.1 million shares in
Q4 FY'13, FY2014, FY2013, respectively, 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 |
|
|
|
|
|
|
|
|
Q4 FY'14 |
|
Q3 FY'14 |
|
Q4 FY'13 |
Deferred Revenue |
|
$ |
3,100.2 |
|
$ |
2,959.3 |
|
$ |
3,009.5 |
DSO (days) |
|
|
47 |
|
|
33 |
|
|
42 |
Inventory Turns |
|
|
19 |
|
|
20 |
|
|
19 |
|
|
|
Days sales outstanding (DSO) is defined as accounts receivable,
net divided by net revenue, 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FY'14 |
|
|
Q3 FY'14 |
|
|
Q4 FY'13 |
|
|
FY 2014 |
|
|
FY 2013 |
|
Net Cash Provided by Operating Activities |
|
$ |
369.5 |
|
|
$ |
331.8 |
|
|
$ |
455.6 |
|
|
$ |
1,349.6 |
|
|
$ |
1,386.3 |
|
Purchases of Property and Equipment |
|
$ |
56.0 |
|
|
$ |
57.9 |
|
|
$ |
63.6 |
|
|
$ |
221.4 |
|
|
$ |
303.3 |
|
Free Cash Flow |
|
$ |
313.5 |
|
|
$ |
273.9 |
|
|
$ |
392.0 |
|
|
$ |
1,128.2 |
|
|
$ |
1,083.0 |
|
Free Cash Flow as % of Total Revenue |
|
|
19.0 |
% |
|
|
17.0 |
% |
|
|
22.8 |
% |
|
|
17.8 |
% |
|
|
17.1 |
% |
|
|
|
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 |
|
|
Year Ended |
|
|
|
April 25, 2014 |
|
|
January 24, 2014 |
|
|
April 26, 2013 |
|
|
April 25, 2014 |
|
|
April 26, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
$ |
197.0 |
|
|
$ |
192.1 |
|
|
$ |
173.8 |
|
|
$ |
637.5 |
|
|
$ |
505.3 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
14.6 |
|
|
|
14.7 |
|
|
|
21.5 |
|
|
|
59.1 |
|
|
|
85.8 |
|
|
Stock-based compensation |
|
|
67.2 |
|
|
|
71.9 |
|
|
|
65.1 |
|
|
|
273.0 |
|
|
|
276.6 |
|
|
Restructuring and other charges |
|
|
38.8 |
|
|
|
- |
|
|
|
- |
|
|
|
88.3 |
|
|
|
- |
|
|
Acquisition-related expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1.7 |
|
|
Non-cash interest expense |
|
|
- |
|
|
|
- |
|
|
|
16.2 |
|
|
|
8.2 |
|
|
|
60.2 |
|
|
Gain
on investments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.7 |
) |
|
Income tax effect of Non-GAAP adjustments |
|
|
(33.4 |
) |
|
|
(18.1 |
) |
|
|
(24.1 |
) |
|
|
(97.9 |
) |
|
|
(88.3 |
) |
NON-GAAP NET INCOME |
|
$ |
284.2 |
|
|
$ |
260.6 |
|
|
$ |
252.5 |
|
|
$ |
968.2 |
|
|
$ |
840.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
$ |
607.0 |
|
|
$ |
607.7 |
|
|
$ |
684.3 |
|
|
$ |
2,406.0 |
|
|
$ |
2,571.3 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(14.3 |
) |
|
|
(14.2 |
) |
|
|
(14.1 |
) |
|
|
(57.1 |
) |
|
|
(55.9 |
) |
|
Stock-based compensation |
|
|
(5.3 |
) |
|
|
(6.1 |
) |
|
|
(5.8 |
) |
|
|
(22.3 |
) |
|
|
(25.5 |
) |
NON-GAAP COST OF REVENUES |
|
$ |
587.4 |
|
|
$ |
587.4 |
|
|
$ |
664.4 |
|
|
$ |
2,326.6 |
|
|
$ |
2,489.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF PRODUCT REVENUES |
|
$ |
453.2 |
|
|
$ |
450.7 |
|
|
$ |
517.9 |
|
|
$ |
1,777.1 |
|
|
$ |
1,959.9 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(13.7 |
) |
|
|
(13.6 |
) |
|
|
(13.5 |
) |
|
|
(54.8 |
) |
|
|
(55.3 |
) |
|
Stock-based compensation |
|
|
(1.4 |
) |
|
|
(1.5 |
) |
|
|
(1.4 |
) |
|
|
(5.6 |
) |
|
|
(6.1 |
) |
NON-GAAP COST OF PRODUCT REVENUES |
|
$ |
438.1 |
|
|
$ |
435.6 |
|
|
$ |
503.0 |
|
|
$ |
1,716.7 |
|
|
$ |
1,898.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF SERVICE REVENUES |
|
$ |
145.8 |
|
|
$ |
149.3 |
|
|
$ |
159.0 |
|
|
$ |
598.2 |
|
|
$ |
583.1 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(0.6 |
) |
|
|
(0.6 |
) |
|
|
(4.4 |
) |
|
|
(2.3 |
) |
|
|
(19.4 |
) |
|
Stock-based compensation |
|
|
(3.9 |
) |
|
|
(4.6 |
) |
|
|
(0.6 |
) |
|
|
(16.7 |
) |
|
|
(0.6 |
) |
NON-GAAP COST OF SERVICE REVENUES |
|
$ |
141.3 |
|
|
$ |
144.1 |
|
|
$ |
154.0 |
|
|
$ |
579.2 |
|
|
$ |
563.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
$ |
1,042.0 |
|
|
$ |
1,002.3 |
|
|
$ |
1,032.2 |
|
|
$ |
3,919.1 |
|
|
$ |
3,761.1 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
14.3 |
|
|
|
14.2 |
|
|
|
14.1 |
|
|
|
57.1 |
|
|
|
55.9 |
|
|
Stock-based compensation |
|
|
5.3 |
|
|
|
6.1 |
|
|
|
5.8 |
|
|
|
22.3 |
|
|
|
25.5 |
|
NON-GAAP GROSS PROFIT |
|
$ |
1,061.6 |
|
|
$ |
1,022.6 |
|
|
$ |
1,052.1 |
|
|
$ |
3,998.5 |
|
|
$ |
3,842.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES AND MARKETING EXPENSES |
|
$ |
475.0 |
|
|
$ |
475.9 |
|
|
$ |
510.2 |
|
|
$ |
1,898.2 |
|
|
$ |
1,974.8 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(0.3 |
) |
|
|
(0.5 |
) |
|
|
(7.4 |
) |
|
|
(2.0 |
) |
|
|
(29.8 |
) |
|
Stock-based compensation |
|
|
(30.4 |
) |
|
|
(33.0 |
) |
|
|
(30.4 |
) |
|
|
(125.0 |
) |
|
|
(132.2 |
) |
NON-GAAP SALES AND MARKETING EXPENSES |
|
$ |
444.3 |
|
|
$ |
442.4 |
|
|
$ |
472.4 |
|
|
$ |
1,771.2 |
|
|
$ |
1,812.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESEARCH AND DEVELOPMENT EXPENSES |
|
$ |
230.7 |
|
|
$ |
230.3 |
|
|
$ |
243.4 |
|
|
$ |
917.3 |
|
|
$ |
904.2 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.1 |
) |
|
Stock-based compensation |
|
|
(21.1 |
) |
|
|
(23.6 |
) |
|
|
(20.3 |
) |
|
|
(87.7 |
) |
|
|
(84.1 |
) |
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES |
|
$ |
209.6 |
|
|
$ |
206.7 |
|
|
$ |
223.1 |
|
|
$ |
829.6 |
|
|
$ |
820.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL AND ADMINISTRATIVE EXPENSES |
|
$ |
73.7 |
|
|
$ |
69.4 |
|
|
$ |
74.2 |
|
|
$ |
281.0 |
|
|
$ |
272.6 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(10.4 |
) |
|
|
(9.2 |
) |
|
|
(8.6 |
) |
|
|
(38.0 |
) |
|
|
(34.8 |
) |
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES |
|
$ |
63.3 |
|
|
$ |
60.2 |
|
|
$ |
65.6 |
|
|
$ |
243.0 |
|
|
$ |
237.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING AND OTHER CHARGES |
|
$ |
38.8 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
88.3 |
|
|
$ |
- |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges |
|
|
(38.8 |
) |
|
|
- |
|
|
|
- |
|
|
|
(88.3 |
) |
|
|
- |
|
NON-GAAP RESTRUCTURING AND OTHER CHARGES |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACQUISITION-RELATED EXPENSE |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1.7 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1.7 |
) |
NON-GAAP ACQUISITION-RELATED EXPENSE |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
$ |
818.2 |
|
|
$ |
775.6 |
|
|
$ |
827.8 |
|
|
$ |
3,184.8 |
|
|
$ |
3,153.3 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(0.3 |
) |
|
|
(0.5 |
) |
|
|
(7.4 |
) |
|
|
(2.0 |
) |
|
|
(29.9 |
) |
|
Stock-based compensation |
|
|
(61.9 |
) |
|
|
(65.8 |
) |
|
|
(59.3 |
) |
|
|
(250.7 |
) |
|
|
(251.1 |
) |
|
Restructuring and other charges |
|
|
(38.8 |
) |
|
|
- |
|
|
|
- |
|
|
|
(88.3 |
) |
|
|
- |
|
|
Acquisition-related expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1.7 |
) |
NON-GAAP OPERATING EXPENSES |
|
$ |
717.2 |
|
|
$ |
709.3 |
|
|
$ |
761.1 |
|
|
$ |
2,843.8 |
|
|
$ |
2,870.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS |
|
$ |
223.8 |
|
|
$ |
226.7 |
|
|
$ |
204.4 |
|
|
$ |
734.3 |
|
|
$ |
607.8 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
14.6 |
|
|
|
14.7 |
|
|
|
21.5 |
|
|
|
59.1 |
|
|
|
85.8 |
|
|
Stock-based compensation |
|
|
67.2 |
|
|
|
71.9 |
|
|
|
65.1 |
|
|
|
273.0 |
|
|
|
276.6 |
|
|
Restructuring and other charges |
|
|
38.8 |
|
|
|
- |
|
|
|
- |
|
|
|
88.3 |
|
|
|
- |
|
|
Acquisition-related expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1.7 |
|
NON-GAAP INCOME FROM OPERATIONS |
|
$ |
344.4 |
|
|
$ |
313.3 |
|
|
$ |
291.0 |
|
|
$ |
1,154.7 |
|
|
$ |
971.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OTHER INCOME (EXPENSE), NET |
|
$ |
2.8 |
|
|
$ |
2.9 |
|
|
$ |
(15.5 |
) |
|
$ |
6.4 |
|
|
$ |
(41.2 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash interest expense |
|
|
- |
|
|
|
- |
|
|
|
16.2 |
|
|
|
8.2 |
|
|
|
60.2 |
|
|
Gain
on investments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.7 |
) |
NON-GAAP TOTAL OTHER INCOME, NET |
|
$ |
2.8 |
|
|
$ |
2.9 |
|
|
$ |
0.7 |
|
|
$ |
14.6 |
|
|
$ |
18.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
$ |
226.6 |
|
|
$ |
229.6 |
|
|
$ |
188.9 |
|
|
$ |
740.7 |
|
|
$ |
566.6 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
14.6 |
|
|
|
14.7 |
|
|
|
21.5 |
|
|
|
59.1 |
|
|
|
85.8 |
|
|
Stock-based compensation |
|
|
67.2 |
|
|
|
71.9 |
|
|
|
65.1 |
|
|
|
273.0 |
|
|
|
276.6 |
|
|
Restructuring and other charges |
|
|
38.8 |
|
|
|
- |
|
|
|
- |
|
|
|
88.3 |
|
|
|
- |
|
|
Acquisition-related expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1.7 |
|
|
Non-cash interest expense |
|
|
- |
|
|
|
- |
|
|
|
16.2 |
|
|
|
8.2 |
|
|
|
60.2 |
|
|
Gain
on investments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.7 |
) |
NON-GAAP INCOME BEFORE INCOME TAXES |
|
$ |
347.2 |
|
|
$ |
316.2 |
|
|
$ |
291.7 |
|
|
$ |
1,169.3 |
|
|
$ |
990.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES |
|
$ |
29.6 |
|
|
$ |
37.5 |
|
|
$ |
15.1 |
|
|
$ |
103.2 |
|
|
$ |
61.3 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax effect of Non-GAAP adjustments |
|
|
33.4 |
|
|
|
18.1 |
|
|
|
24.1 |
|
|
|
97.9 |
|
|
|
88.3 |
|
NON-GAAP PROVISION FOR INCOME TAXES |
|
$ |
63.0 |
|
|
$ |
55.6 |
|
|
$ |
39.2 |
|
|
$ |
201.1 |
|
|
$ |
149.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER SHARE |
|
$ |
0.59 |
|
|
$ |
0.55 |
|
|
$ |
0.47 |
|
|
$ |
1.83 |
|
|
$ |
1.37 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
0.04 |
|
|
|
0.04 |
|
|
|
0.06 |
|
|
|
0.17 |
|
|
|
0.23 |
|
|
Stock-based compensation |
|
|
0.20 |
|
|
|
0.21 |
|
|
|
0.18 |
|
|
|
0.79 |
|
|
|
0.75 |
|
|
Restructuring and other charges |
|
|
0.11 |
|
|
|
- |
|
|
|
- |
|
|
|
0.25 |
|
|
|
- |
|
|
Acquisition-related expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Non-cash interest expense |
|
|
- |
|
|
|
- |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.16 |
|
|
Gain
on investments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Income tax effect of Non-GAAP adjustments |
|
|
(0.10 |
) |
|
|
(0.05 |
) |
|
|
(0.07 |
) |
|
|
(0.28 |
) |
|
|
(0.24 |
) |
NON-GAAP NET INCOME PER SHARE |
|
$ |
0.84 |
|
|
$ |
0.75 |
|
|
$ |
0.69 |
|
|
$ |
2.78 |
|
|
$ |
2.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Some
items may not add or recalculate due to rounding. |
|
|
|
|
NETAPP, INC. |
RECONCILIATION OF NON GAAP GUIDANCE TO GAAP |
EXPRESSED AS EARNINGS PER SHARE |
FIRST QUARTER 2015 |
(Unaudited) |
|
|
|
|
|
First Quarter |
|
|
2015 |
|
|
|
Non-GAAP Guidance - Net Income Per Share |
|
$0.53 - $0.58 |
|
|
|
|
|
|
Adjustments of Specific Items to |
|
|
|
Net
Income Per Share for the First |
|
|
|
Quarter 2015: |
|
|
|
|
|
|
|
Amortization of intangible assets |
|
(0.04) |
|
Stock-based compensation expense |
|
(0.22) |
|
Income tax effect |
|
0.05 |
Total Adjustments |
|
(0.21) |
|
|
|
GAAP Guidance - Net Income Per Share |
|
$0.32 - $0.37 |
|
|
|
|
|
|
Press Contact: Jeremiah Glodoveza NetApp 408-822-4567 Email
Contact Investor Contact: Kris Newton NetApp 408-822-3312 Email
Contact
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