Net Revenues of $1.40 Billion; Up 5%
Quarter-over-Quarter and 1% Year-over-Year; GAAP EPS of $0.52
and Non-GAAP EPS of $0.82
NetApp (NASDAQ:NTAP) today reported financial results for the third
quarter of fiscal year 2017, ended January 27, 2017.
Third Quarter Financial ResultsNet revenues for
the third quarter of fiscal year 2017 were $1.40 billion. GAAP net
income for the third quarter of fiscal year 2017 was $146 million,
or $0.52 per share,1 compared to GAAP net income of $153 million,
or $0.52 per share, for the comparable period of the prior year.
Non-GAAP net income for the third quarter of fiscal year 2017 was
$231 million, or $0.82 per share,2 compared to non-GAAP net income
of $206 million, or $0.70 per share, for the comparable period of
the prior year.
Cash, Cash Equivalents and Investments NetApp
ended the third quarter of fiscal year 2017 with $4.6 billion in
total cash, cash equivalents and investments. During the third
quarter of fiscal year 2017, the Company generated $235 million in
cash from operations and returned $336 million to shareholders
through share repurchases and a cash dividend.
The Company announced the next cash dividend of $0.19 per share.
The quarterly dividend will be paid on April 26, 2017 to
shareholders of record as of the close of business on April 7,
2017.
“Q3 marked another quarter of strong execution by NetApp,” said
George Kurian, chief executive officer. “The transformation of
NetApp is yielding solid results and has changed the trajectory of
our business. With our industry-leading portfolio of solutions and
Data Fabric strategy, NetApp is well positioned to lead in the next
era of IT.”
Q4 Fiscal Year 2017 OutlookThe Company provided
the following financial guidance for the fourth quarter of fiscal
year 2017:
- Net revenues are expected to be in the range of $1.365 billion
to $1.515 billion.
- GAAP earnings per share is expected to be in the range of $0.60
to $0.65 per share.
- Non-GAAP earnings per share is expected to be in the range of
$0.79 to $0.84 per share.
Business Highlights
- NetApp Expands Cloud Data Management and All-Flash
Offerings - NetApp Improves Control, Simplifies
Movement of Data in the Hybrid Cloud. New
Data Fabric solutions and services speed data access and
visibility, enhance data protection and security, and help
customers extract value from their data from anywhere in the hybrid
cloud. - NetApp Expands All-Flash Portfolio with New
Entry-Level Array. The NetAppTM All Flash FAS (AFF) A200
expands the market opportunity for the world’s fastest and most
efficient cloud-connected enterprise storage portfolio. The
entry-level system delivers enterprise-grade flash performance at a
very attractive price point and is ideal for midsize businesses
that are making the move to all flash.
- Customers Team with NetApp to Accelerate Performance
and Responsiveness - Carrenza Supports
Rapidly Evolving Customer Application and Infrastructure Demands
with NetApp SolidFire. Global cloud service company
Carrenza leverages NetApp SolidFireTM all-flash storage to enable
customers to scale and accelerate business performance, increase
infrastructure agility and responsiveness, and reduce storage
maintenance time and administration effort. - Cologne
Broadcasting Center (CBC) Upgrades TV Production
and Delivery Services with NetApp. A new production
storage and disaster recovery infrastructure has improved CBC
broadcast service offerings throughout Germany with solutions
delivered by NetApp and partner Pixit Media. -
Wirestorm Delivers DevOps in the Cloud with NetApp ONTAP Cloud for
Amazon Web Services (AWS). To accelerate and automate its
DevOps process, Wirestorm deployed NetApp ONTAPTM Cloud. This Data
Fabric solution delivers everything that the company needs for
DevOps in the cloud—without a single physical array—enabling
Wirestorm to use only laptops. The framework that it created with
NetApp has enabled Wirestorm to automate so efficiently that it can
implement an end-to-end solution all the way to AWS in less than a
minute.
Webcast and Conference Call InformationNetApp
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.
About NetAppLeading organizations worldwide
count on NetApp for software, systems and services to manage and
store data. We help customers capitalize on the value of their data
in the hybrid cloud through our Data Fabric strategy, data
management expertise, portfolio and ecosystem. To learn more,
visit www.netapp.com.
“Safe Harbor” Statement Under U.S. Private Securities
Litigation Reform Act of 1995This 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 Q4
Fiscal Year 2017 Outlook section and statements made about the
trajectory of our business and our ability to lead in the digital
era. 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 global political, macroeconomic and market conditions,
changes in U.S. government spending, revenue seasonality and
matters specific to our business, such as our ability to
understand, and effectively respond to changes affecting our market
environment, product, technologies and customer requirements,
including the impact of the cloud, customer demand for and
acceptance of our products and services, our ability to reduce our
cost structure, streamline the business and improve efficiency, our
ability to effectively integrate the SolidFire acquisition, and our
ability to manage our gross profit margins. These and other equally
important factors are described in reports and documents we file
from time to time with the Securities and Exchange Commission,
including the factors described under the section titled “Risk
Factors” in our most recently submitted Annual Report on Form 10-K.
We disclaim any obligation to update information contained in this
press release whether as a result of new information, future
events, or otherwise.
NetApp and the NetApp logo and the marks listed at
http://www.netapp.com/TM are trademarks of NetApp, Inc. Other
company and product names may be trademarks of their respective
owners.
1 GAAP earnings per share is calculated using the diluted number
of shares.2 Non-GAAP net income excludes, when applicable,
(a) amortization of intangible assets, (b) stock-based
compensation expenses, (c) acquisition-related expenses, (d)
restructuring and other charges, (e) asset impairments, (f)
gains/losses on the sale of properties, and (g) 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. NetApp makes additional
adjustments to the non-GAAP tax provision for certain tax matters
as described below. 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’s management uses these
non-GAAP measures in making operating decisions because it believes
the measurements provide meaningful supplemental information
regarding NetApp’s ongoing operational performance.
NetApp Usage of Non-GAAP Financial Information
To supplement NetApp’s condensed consolidated financial
statement information presented in accordance with generally
accepted accounting principles in the United States (GAAP), NetApp
provides investors with certain non-GAAP measures, including, but
not limited to, historical non-GAAP operating results, non-GAAP net
income, non-GAAP effective tax rate and free cash flow, and
historical and projected non-GAAP earnings per diluted share.
NetApp believes that the presentation of non-GAAP net income,
non-GAAP effective tax rates, and non-GAAP earnings per share data
when shown in conjunction with the corresponding GAAP measures,
provides useful information to investors and management regarding
financial and business trends relating to its financial condition
and results of operations. NetApp believes that the presentation of
free cash flow, which it defines as the net cash provided by
operating activities less cash used to acquire property and
equipment, to be a liquidity measure that provides useful
information to management and investors because it reflects cash
that can be used to, among other things, invest in its business,
make strategic acquisitions, repurchase common stock, and pay
dividends on its common stock, after deducting capital
expenditures. As free cash flow is not a measure of liquidity
calculated in accordance with GAAP, free cash flow should be
considered in addition to, but not as a substitute for, the
analysis provided in the statement of cash flows.
NetApp’s management uses these non-GAAP measures in making
operating decisions because it believes the measurements provide
meaningful supplemental information regarding NetApp’s ongoing
operational performance. 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.
NetApp excludes the following items from its non-GAAP measures
when applicable:
A. Amortization of intangible assets. NetApp records
amortization of intangible assets that were acquired in connection
with its business combinations. The amortization of intangible
assets varies depending on the level of acquisition activity.
Management finds it useful to exclude these charges to assess the
appropriate level of various operating expenses to assist in
budgeting, planning and forecasting future periods and in measuring
operational performance.
B. Stock-based compensation expenses. NetApp excludes
stock-based compensation expenses from its non-GAAP measures
primarily because they are non-cash expenses. While management
views stock-based compensation as a key element of our employee
retention and long-term incentives, we do not view it as an
expense to be used in evaluating operational performance in any
given period.
C. Acquisition-related expenses. NetApp excludes
acquisition-related expenses, including (a) due diligence, legal
and other one-time integration charges and (b) write down of assets
acquired that NetApp does not intend to use in its ongoing
business, from its non-GAAP measures, primarily because they are
not related to our ongoing business or cost base and, therefore,
cannot be relied upon for future planning and forecasting.
D. Restructuring and other charges. These charges include
restructuring charges that are incurred based on the particular
facts and circumstances of restructuring decisions, including
employment and contractual settlement terms, and other related
charges, and can vary in size and frequency. These items are not
ordinarily included in our annual operating plan and related budget
due to the unpredictability of the timing and size of these events.
We therefore exclude them in our assessment of operational
performance.
E. Asset impairments. These are non-cash charges to write down
assets when there is an indication that the asset has become
impaired. Management finds it useful to exclude these non-cash
charges due to the unpredictability of these events in its
assessment of operational performance.
F. Gains/losses on the sale of properties. These are
gains/losses from the sale of our properties. Management believes
that these transactions do not reflect the results of our
underlying, on-going business and, therefore, cannot be relied upon
for future planning or forecasting.
G. Income tax adjustments. NetApp’s non-GAAP tax provision is
based upon a 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. The non-GAAP
tax provision also excludes, when applicable, (a) tax charges or
benefits in the current period that relate to one or more prior
fiscal periods that are a result of events such as changes in tax
legislation, authoritative guidance, income tax audit settlements
and/or court decisions, (b) tax charges or benefits that are
attributable to unusual or non-recurring book and/or tax accounting
method changes, (c) tax charges that are a result of a non-routine
foreign cash repatriation, (d) tax charges or benefits that are a
result of infrequent restructuring of the Company’s tax structure,
(e) tax charges or benefits that are a result of a change in
valuation allowance, and (f) tax charges resulting from the
integration of intellectual properties from acquisitions.
Management believes that the use of non-GAAP tax provisions
provides a more meaningful measure of the Company’s operational
performance.
These non-GAAP measures are not in accordance with, or an
alternative for, measures prepared in accordance with GAAP, and may
be different from non-GAAP measures used by other companies. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles. NetApp
believes that non-GAAP measures have limitations in that they do
not reflect all of the amounts associated with the Company’s
results of operations as determined in accordance with GAAP and
that these measures should only be used to evaluate the Company’s
results of operations in conjunction with the corresponding GAAP
measures. NetApp management compensates for these limitations by
analyzing current and projected results on a GAAP basis as well as
a non-GAAP basis. The presentation of non-GAAP financial
information is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with generally accepted accounting principles in the
United States. The non-GAAP financial measures are meant to
supplement, and be viewed in conjunction with, GAAP financial
measures.
|
|
NETAPP, INC. |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(In millions) |
|
(Unaudited) |
|
|
|
|
|
January 27,2017 |
|
|
April 29,2016 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash,
cash equivalents and investments |
|
$ |
4,639 |
|
|
$ |
5,303 |
|
Accounts
receivable |
|
|
605 |
|
|
|
813 |
|
Inventories |
|
|
125 |
|
|
|
98 |
|
Other
current assets |
|
|
277 |
|
|
|
234 |
|
Total
current assets |
|
|
5,646 |
|
|
|
6,448 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
892 |
|
|
|
937 |
|
Goodwill and purchased
intangible assets, net |
|
|
1,821 |
|
|
|
1,856 |
|
Other non-current
assets |
|
|
696 |
|
|
|
796 |
|
Total assets |
|
$ |
9,055 |
|
|
$ |
10,037 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
258 |
|
|
$ |
254 |
|
Accrued
expenses |
|
|
747 |
|
|
|
765 |
|
Commercial paper notes |
|
|
392 |
|
|
|
— |
|
Short-term loan |
|
|
— |
|
|
|
849 |
|
Current
portion of long-term debt |
|
|
748 |
|
|
|
— |
|
Short-term deferred revenue and financed unearned services
revenue |
|
|
1,699 |
|
|
|
1,794 |
|
Total
current liabilities |
|
|
3,844 |
|
|
|
3,662 |
|
Long-term debt |
|
|
744 |
|
|
|
1,490 |
|
Other long-term
liabilities |
|
|
238 |
|
|
|
413 |
|
Long-term deferred
revenue and financed unearned services revenue |
|
|
1,535 |
|
|
|
1,591 |
|
Total liabilities |
|
|
6,361 |
|
|
|
7,156 |
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
2,694 |
|
|
|
2,881 |
|
Total liabilities and stockholders'
equity |
|
$ |
9,055 |
|
|
$ |
10,037 |
|
|
|
NETAPP, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(In millions, except per share
amounts) |
|
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
January 27,2017 |
|
|
January 29,2016 |
|
|
January 27,2017 |
|
|
January 29,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
784 |
|
|
$ |
750 |
|
|
$ |
2,154 |
|
|
$ |
2,229 |
|
Software
maintenance |
|
|
240 |
|
|
|
234 |
|
|
|
723 |
|
|
|
715 |
|
Hardware
maintenance and other services |
|
|
380 |
|
|
|
402 |
|
|
|
1,161 |
|
|
|
1,222 |
|
Net
revenues |
|
|
1,404 |
|
|
|
1,386 |
|
|
|
4,038 |
|
|
|
4,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
product |
|
|
435 |
|
|
|
381 |
|
|
|
1,170 |
|
|
|
1,134 |
|
Cost of
software maintenance |
|
|
7 |
|
|
|
9 |
|
|
|
22 |
|
|
|
28 |
|
Cost of
hardware maintenance and other services |
|
|
111 |
|
|
|
141 |
|
|
|
369 |
|
|
|
449 |
|
Total
cost of revenues |
|
|
553 |
|
|
|
531 |
|
|
|
1,561 |
|
|
|
1,611 |
|
Gross profit |
|
|
851 |
|
|
|
855 |
|
|
|
2,477 |
|
|
|
2,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
381 |
|
|
|
418 |
|
|
|
1,228 |
|
|
|
1,358 |
|
Research
and development |
|
|
181 |
|
|
|
200 |
|
|
|
588 |
|
|
|
660 |
|
General
and administrative |
|
|
64 |
|
|
|
70 |
|
|
|
201 |
|
|
|
223 |
|
Restructuring and other charges |
|
|
52 |
|
|
|
— |
|
|
|
52 |
|
|
|
28 |
|
Acquisition-related expense |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
Gain on
sale of properties |
|
|
(10 |
) |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
Total
operating expenses |
|
|
668 |
|
|
|
690 |
|
|
|
2,059 |
|
|
|
2,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
|
183 |
|
|
|
165 |
|
|
|
418 |
|
|
|
284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
|
— |
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
183 |
|
|
|
163 |
|
|
|
417 |
|
|
|
285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
37 |
|
|
|
10 |
|
|
|
98 |
|
|
|
48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
146 |
|
|
$ |
153 |
|
|
$ |
319 |
|
|
$ |
237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.53 |
|
|
$ |
0.52 |
|
|
$ |
1.15 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.52 |
|
|
$ |
0.52 |
|
|
$ |
1.13 |
|
|
$ |
0.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in net
income per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
274 |
|
|
|
293 |
|
|
|
277 |
|
|
|
297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
281 |
|
|
|
296 |
|
|
|
282 |
|
|
|
300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share |
|
$ |
0.190 |
|
|
$ |
0.180 |
|
|
$ |
0.570 |
|
|
$ |
0.540 |
|
|
|
NETAPP, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(In millions) |
|
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
January 27,2017 |
|
|
January 29,2016 |
|
|
January 27,2017 |
|
|
January 29,2016 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
146 |
|
|
$ |
153 |
|
|
$ |
319 |
|
|
$ |
237 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
56 |
|
|
|
66 |
|
|
|
173 |
|
|
|
202 |
|
Stock-based compensation |
|
|
46 |
|
|
|
63 |
|
|
|
149 |
|
|
|
199 |
|
Gain on
sale of properties |
|
|
(10 |
) |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
Other
items, net |
|
|
52 |
|
|
|
(22 |
) |
|
|
65 |
|
|
|
(74 |
) |
Changes
in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
(56 |
) |
|
|
1 |
|
|
|
208 |
|
|
|
190 |
|
Inventories |
|
|
(28 |
) |
|
|
23 |
|
|
|
(27 |
) |
|
|
44 |
|
Accounts
payable |
|
|
26 |
|
|
|
(53 |
) |
|
|
13 |
|
|
|
(113 |
) |
Accrued
expenses |
|
|
17 |
|
|
|
10 |
|
|
|
(121 |
) |
|
|
(78 |
) |
Deferred
revenue and financed unearned services revenue |
|
|
31 |
|
|
|
85 |
|
|
|
(148 |
) |
|
|
(52 |
) |
Changes
in other operating assets and liabilities, net |
|
|
(45 |
) |
|
|
29 |
|
|
|
— |
|
|
|
74 |
|
Net cash provided by operating activities |
|
|
235 |
|
|
|
355 |
|
|
|
621 |
|
|
|
629 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemptions (purchases) of investments, net |
|
|
(188 |
) |
|
|
91 |
|
|
|
2 |
|
|
|
879 |
|
Purchases
of property and equipment |
|
|
(45 |
) |
|
|
(41 |
) |
|
|
(137 |
) |
|
|
(125 |
) |
Other
investing activities, net |
|
|
3 |
|
|
|
(1 |
) |
|
|
2 |
|
|
|
(1 |
) |
Net cash provided by (used in) investing
activities |
|
|
(230 |
) |
|
|
49 |
|
|
|
(133 |
) |
|
|
753 |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of common stock under employee stock award plans |
|
|
45 |
|
|
|
45 |
|
|
|
70 |
|
|
|
70 |
|
Repurchase of common stock |
|
|
(284 |
) |
|
|
(85 |
) |
|
|
(576 |
) |
|
|
(698 |
) |
Changes
in commercial paper notes, net |
|
|
392 |
|
|
|
— |
|
|
|
392 |
|
|
|
— |
|
Repayment
of short-term loan |
|
|
— |
|
|
|
— |
|
|
|
(850 |
) |
|
|
— |
|
Dividends
paid |
|
|
(52 |
) |
|
|
(52 |
) |
|
|
(157 |
) |
|
|
(159 |
) |
Other
financing activities, net |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
Net cash provided by (used in) financing
activities |
|
|
97 |
|
|
|
(96 |
) |
|
|
(1,128 |
) |
|
|
(790 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
(2 |
) |
|
|
(11 |
) |
|
|
(15 |
) |
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
|
|
100 |
|
|
|
297 |
|
|
|
(655 |
) |
|
|
573 |
|
Cash and cash
equivalents: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
of period |
|
|
2,113 |
|
|
|
2,198 |
|
|
|
2,868 |
|
|
|
1,922 |
|
End of
period |
|
$ |
2,213 |
|
|
$ |
2,495 |
|
|
$ |
2,213 |
|
|
$ |
2,495 |
|
NETAPP, INC. |
|
SUPPLEMENTAL DATA |
|
(In millions except net income per share,
percentages, DSO, DIO, DPO, CCC and Inventory Turns) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY'17 |
|
|
Q2 FY'17 |
|
|
Q3 FY'16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Product (1) |
|
$ |
784 |
|
|
$ |
710 |
|
|
$ |
750 |
|
Strategic |
|
$ |
512 |
|
|
$ |
452 |
|
|
$ |
419 |
|
Mature |
|
$ |
272 |
|
|
$ |
258 |
|
|
$ |
331 |
|
Software
Maintenance |
|
$ |
240 |
|
|
$ |
242 |
|
|
$ |
234 |
|
Hardware Maintenance
and Other Services: |
|
$ |
380 |
|
|
$ |
388 |
|
|
$ |
402 |
|
Hardware
Maintenance Support Contracts |
|
$ |
313 |
|
|
$ |
316 |
|
|
$ |
326 |
|
Professional and Other Services |
|
$ |
67 |
|
|
$ |
72 |
|
|
$ |
76 |
|
Net Revenues |
|
$ |
1,404 |
|
|
$ |
1,340 |
|
|
$ |
1,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geographic Mix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of
Q3FY'17Revenue |
|
|
% of Q2FY'17Revenue |
|
|
% of Q3FY'16Revenue |
|
Americas |
|
|
55 |
% |
|
|
57 |
% |
|
|
54 |
% |
Americas
Commercial |
|
|
44 |
% |
|
|
42 |
% |
|
|
44 |
% |
U.S.
Public Sector |
|
|
10 |
% |
|
|
16 |
% |
|
|
10 |
% |
EMEA |
|
|
33 |
% |
|
|
30 |
% |
|
|
33 |
% |
Asia Pacific |
|
|
13 |
% |
|
|
13 |
% |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pathways Mix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of
Q3FY'17Revenue |
|
|
% of Q2FY'17Revenue |
|
|
% of Q3FY'16Revenue |
|
Direct |
|
|
21 |
% |
|
|
22 |
% |
|
|
22 |
% |
Indirect |
|
|
79 |
% |
|
|
78 |
% |
|
|
78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Margins |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY'17 |
|
|
Q2 FY'17 |
|
|
Q3 FY'16 |
|
Non-GAAP Gross
Margin |
|
|
61.5 |
% |
|
|
62.7 |
% |
|
|
63.1 |
% |
Product |
|
|
45.7 |
% |
|
|
48.2 |
% |
|
|
51.1 |
% |
Software
Maintenance |
|
|
97.1 |
% |
|
|
97.1 |
% |
|
|
96.2 |
% |
Hardware
Maintenance and Other Services |
|
|
71.6 |
% |
|
|
67.8 |
% |
|
|
66.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income from Operations, Income before Income Taxes
& Effective Tax Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY'17 |
|
|
Q2 FY'17 |
|
|
Q3 FY'16 |
|
Non-GAAP Income from
Operations |
|
$ |
284 |
|
|
$ |
204 |
|
|
$ |
244 |
|
% of Net
Revenues |
|
|
20.2 |
% |
|
|
15.2 |
% |
|
|
17.6 |
% |
Non-GAAP Income before
Income Taxes |
|
$ |
284 |
|
|
$ |
204 |
|
|
$ |
242 |
|
Non-GAAP Effective Tax
Rate |
|
|
18.6 |
% |
|
|
17.3 |
% |
|
|
14.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY'17 |
|
|
Q2 FY'17 |
|
|
Q3 FY'16 |
|
Non-GAAP Net
Income |
|
$ |
231 |
|
|
$ |
169 |
|
|
$ |
206 |
|
Non-GAAP Weighted
Average Common Shares Outstanding, Diluted |
|
|
281 |
|
|
|
284 |
|
|
|
296 |
|
Non-GAAP Income per
Share, Diluted |
|
$ |
0.82 |
|
|
$ |
0.60 |
|
|
$ |
0.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Balance Sheet Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY'17 |
|
|
Q2 FY'17 |
|
|
Q3 FY'16 |
|
Deferred Revenue and
Financed Unearned Services Revenue |
|
$ |
3,234 |
|
|
$ |
3,201 |
|
|
$ |
3,126 |
|
DSO (days) |
|
|
39 |
|
|
|
37 |
|
|
|
38 |
|
DIO (days) |
|
|
21 |
|
|
|
17 |
|
|
|
17 |
|
DPO (days) |
|
|
42 |
|
|
|
45 |
|
|
|
30 |
|
CCC (days) |
|
|
17 |
|
|
|
9 |
|
|
|
26 |
|
Inventory Turns |
|
|
18 |
|
|
|
21 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days sales outstanding (DSO) is defined as accounts receivable
divided by net revenues, multiplied by the number of days in the
quarter. |
|
Days inventory outstanding (DIO) is defined as net inventories
divided by cost of revenues, multiplied by the number of days in
the quarter. |
|
Days payables outstanding (DPO) is defined as accounts payable
divided by cost of revenues, multiplied by the number of days in
the quarter. |
|
Cash conversion cycle (CCC) is defined as DSO plus DIO minus
DPO. |
|
Inventory turns is defined as annualized cost of revenues
divided by net inventories. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Cash Flow Statement Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY'17 |
|
|
Q2 FY'17 |
|
|
Q3 FY'16 |
|
Net Cash Provided by
Operating Activities |
|
$ |
235 |
|
|
$ |
158 |
|
|
$ |
355 |
|
Purchases of Property
and Equipment |
|
$ |
45 |
|
|
$ |
56 |
|
|
$ |
41 |
|
Free Cash Flow |
|
$ |
190 |
|
|
$ |
102 |
|
|
$ |
314 |
|
Free Cash Flow as a %
of Net Revenues |
|
|
13.5 |
% |
|
|
7.6 |
% |
|
|
22.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Sales of certain products which should have been reported
as strategic products were improperly reported as mature product
revenues. All periods presented have been recast to reflect the
appropriate classification. |
|
NETAPP, INC. |
|
RECONCILIATION OF NON-GAAP TO
GAAP |
|
INCOME STATEMENT INFORMATION |
|
(In millions, except net income per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3'FY17 |
|
|
Q2'FY17 |
|
|
Q3'FY16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME |
|
$ |
146 |
|
|
$ |
109 |
|
|
$ |
153 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
13 |
|
|
|
11 |
|
|
|
14 |
|
Stock-based compensation |
|
|
46 |
|
|
|
51 |
|
|
|
63 |
|
Restructuring and other charges |
|
|
52 |
|
|
|
— |
|
|
|
— |
|
Acquisition-related expense |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Gain on
sale of properties |
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
Income
tax effect of non-GAAP adjustments |
|
|
(16 |
) |
|
|
(2 |
) |
|
|
(26 |
) |
NON-GAAP NET
INCOME |
|
$ |
231 |
|
|
$ |
169 |
|
|
$ |
206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUES |
|
$ |
553 |
|
|
$ |
511 |
|
|
$ |
531 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(8 |
) |
|
|
(7 |
) |
|
|
(13 |
) |
Stock-based compensation |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
NON-GAAP COST
OF REVENUES |
|
$ |
541 |
|
|
$ |
500 |
|
|
$ |
512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF PRODUCT
REVENUES |
|
$ |
435 |
|
|
$ |
376 |
|
|
$ |
381 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(8 |
) |
|
|
(7 |
) |
|
|
(13 |
) |
Stock-based compensation |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
NON-GAAP COST
OF PRODUCT REVENUES |
|
$ |
426 |
|
|
$ |
368 |
|
|
$ |
367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
HARDWARE MAINTENANCE AND OTHER SERVICES REVENUES |
|
$ |
111 |
|
|
$ |
128 |
|
|
$ |
141 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
NON-GAAP COST
OF HARDWARE MAINTENANCE AND OTHER SERVICES REVENUES |
|
$ |
108 |
|
|
$ |
125 |
|
|
$ |
136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT |
|
$ |
851 |
|
|
$ |
829 |
|
|
$ |
855 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
8 |
|
|
|
7 |
|
|
|
13 |
|
Stock-based compensation |
|
|
4 |
|
|
|
4 |
|
|
|
6 |
|
NON-GAAP GROSS
PROFIT |
|
$ |
863 |
|
|
$ |
840 |
|
|
$ |
874 |
|
|
|
NETAPP, INC. |
|
RECONCILIATION OF NON-GAAP TO
GAAP |
|
INCOME STATEMENT INFORMATION |
|
(In millions, except net income per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3'FY17 |
|
|
Q2'FY17 |
|
|
Q3'FY16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES AND
MARKETING EXPENSES |
|
$ |
381 |
|
|
$ |
418 |
|
|
$ |
418 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(1 |
) |
Stock-based compensation |
|
|
(20 |
) |
|
|
(21 |
) |
|
|
(27 |
) |
NON-GAAP SALES
AND MARKETING EXPENSES |
|
$ |
356 |
|
|
$ |
393 |
|
|
$ |
390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESEARCH AND
DEVELOPMENT EXPENSES |
|
$ |
181 |
|
|
$ |
200 |
|
|
$ |
200 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(14 |
) |
|
|
(17 |
) |
|
|
(20 |
) |
NON-GAAP
RESEARCH AND DEVELOPMENT EXPENSES |
|
$ |
167 |
|
|
$ |
183 |
|
|
$ |
180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL AND
ADMINISTRATIVE EXPENSES |
|
$ |
64 |
|
|
$ |
69 |
|
|
$ |
70 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
(10 |
) |
NON-GAAP
GENERAL AND ADMINISTRATIVE EXPENSES |
|
$ |
56 |
|
|
$ |
60 |
|
|
$ |
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING
AND OTHER CHARGES |
|
$ |
52 |
|
|
$ |
— |
|
|
$ |
— |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges |
|
|
(52 |
) |
|
|
— |
|
|
|
— |
|
NON-GAAP
RESTRUCTURING AND OTHER CHARGES |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACQUISITION-RELATED EXPENSE |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expense |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
NON-GAAP
ACQUISITION-RELATED EXPENSE |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAIN ON SALE OF
PROPERTIES |
|
$ |
(10 |
) |
|
$ |
— |
|
|
$ |
— |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
Gain on
sale of properties |
|
|
10 |
|
|
|
— |
|
|
|
— |
|
NON-GAAP GAIN
ON SALE OF PROPERTIES |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES |
|
$ |
668 |
|
|
$ |
687 |
|
|
$ |
690 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(1 |
) |
Stock-based compensation |
|
|
(42 |
) |
|
|
(47 |
) |
|
|
(57 |
) |
Restructuring and other charges |
|
|
(52 |
) |
|
|
— |
|
|
|
— |
|
Acquisition-related expense |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Gain on
sale of properties |
|
|
10 |
|
|
|
— |
|
|
|
— |
|
NON-GAAP
OPERATING EXPENSES |
|
$ |
579 |
|
|
$ |
636 |
|
|
$ |
630 |
|
|
|
NETAPP, INC. |
|
RECONCILIATION OF NON-GAAP TO
GAAP |
|
INCOME STATEMENT INFORMATION |
|
(In millions, except net income per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3'FY17 |
|
|
Q2'FY17 |
|
|
Q3'FY16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS |
|
$ |
183 |
|
|
$ |
142 |
|
|
$ |
165 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
13 |
|
|
|
11 |
|
|
|
14 |
|
Stock-based compensation |
|
|
46 |
|
|
|
51 |
|
|
|
63 |
|
Restructuring and other charges |
|
|
52 |
|
|
|
— |
|
|
|
— |
|
Acquisition-related expense |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Gain on
sale of properties |
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
NON-GAAP INCOME
FROM OPERATIONS |
|
$ |
284 |
|
|
$ |
204 |
|
|
$ |
244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES |
|
$ |
183 |
|
|
$ |
142 |
|
|
$ |
163 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
13 |
|
|
|
11 |
|
|
|
14 |
|
Stock-based compensation |
|
|
46 |
|
|
|
51 |
|
|
|
63 |
|
Restructuring and other charges |
|
|
52 |
|
|
|
— |
|
|
|
— |
|
Acquisition-related expense |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Gain on
sale of properties |
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
NON-GAAP INCOME
BEFORE INCOME TAXES |
|
$ |
284 |
|
|
$ |
204 |
|
|
$ |
242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR
INCOME TAXES |
|
$ |
37 |
|
|
$ |
33 |
|
|
$ |
10 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax effect of non-GAAP adjustments |
|
|
16 |
|
|
|
2 |
|
|
|
26 |
|
NON-GAAP
PROVISION FOR INCOME TAXES |
|
$ |
53 |
|
|
$ |
35 |
|
|
$ |
36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
SHARE |
|
$ |
0.52 |
|
|
$ |
0.38 |
|
|
$ |
0.52 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
0.05 |
|
|
|
0.04 |
|
|
|
0.05 |
|
Stock-based compensation |
|
|
0.16 |
|
|
|
0.18 |
|
|
|
0.21 |
|
Restructuring and other charges |
|
|
0.19 |
|
|
|
— |
|
|
|
— |
|
Acquisition-related expense |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Gain on
sale of properties |
|
|
(0.04 |
) |
|
|
— |
|
|
|
— |
|
Income
tax effect of non-GAAP adjustments |
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
(0.09 |
) |
NON-GAAP NET
INCOME PER SHARE |
|
$ |
0.82 |
|
|
$ |
0.60 |
|
|
$ |
0.70 |
|
|
|
RECONCILIATION OF NON-GAAP TO
GAAP |
|
GROSS MARGIN |
|
($ in millions) |
|
|
|
|
|
|
|
Q3'FY17 |
|
|
Q2'FY17 |
|
|
Q3'FY16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin-GAAP |
|
|
60.6 |
% |
|
|
61.9 |
% |
|
|
61.7 |
% |
Cost of
revenues adjustments |
|
|
0.9 |
% |
|
|
0.8 |
% |
|
|
1.4 |
% |
Gross
margin-Non-GAAP |
|
|
61.5 |
% |
|
|
62.7 |
% |
|
|
63.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of
revenues |
|
$ |
553 |
|
|
$ |
511 |
|
|
$ |
531 |
|
Cost of revenues
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(8 |
) |
|
|
(7 |
) |
|
|
(13 |
) |
Stock-based compensation |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
Non-GAAP cost of
revenues |
|
$ |
541 |
|
|
$ |
500 |
|
|
$ |
512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
1,404 |
|
|
$ |
1,340 |
|
|
$ |
1,386 |
|
|
|
RECONCILIATION OF NON-GAAP TO
GAAP |
|
PRODUCT GROSS MARGIN |
|
($ in millions) |
|
|
|
|
|
|
|
Q3'FY17 |
|
|
Q2'FY17 |
|
|
Q3'FY16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product gross
margin-GAAP |
|
|
44.5 |
% |
|
|
47.0 |
% |
|
|
49.2 |
% |
Cost of
product revenues adjustments |
|
|
1.1 |
% |
|
|
1.1 |
% |
|
|
1.9 |
% |
Product gross
margin-Non-GAAP |
|
|
45.7 |
% |
|
|
48.2 |
% |
|
|
51.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of product
revenues |
|
$ |
435 |
|
|
$ |
376 |
|
|
$ |
381 |
|
Cost of product
revenues adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
(8 |
) |
|
|
(7 |
) |
|
|
(13 |
) |
Stock-based compensation |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
Non-GAAP cost of
product revenues |
|
$ |
426 |
|
|
$ |
368 |
|
|
$ |
367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product revenues |
|
$ |
784 |
|
|
$ |
710 |
|
|
$ |
750 |
|
|
|
RECONCILIATION OF NON-GAAP TO
GAAP |
|
HARDWARE MAINTENANCE AND OTHER SERVICES GROSS
MARGIN |
|
($ in millions) |
|
|
|
|
|
|
|
Q3'FY17 |
|
|
Q2'FY17 |
|
|
Q3'FY16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware
maintenance and other services gross margin-GAAP |
|
|
70.8 |
% |
|
|
67.0 |
% |
|
|
64.9 |
% |
Cost of
hardware maintenance and other services revenues adjustments |
|
|
0.8 |
% |
|
|
0.8 |
% |
|
|
1.2 |
% |
Hardware
maintenance and other services gross margin-Non-GAAP |
|
|
71.6 |
% |
|
|
67.8 |
% |
|
|
66.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of hardware
maintenance and other services revenues |
|
$ |
111 |
|
|
$ |
128 |
|
|
$ |
141 |
|
Cost of hardware
maintenance and other services revenues adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
Non-GAAP cost of
hardware maintenance and other services revenues |
|
$ |
108 |
|
|
$ |
125 |
|
|
$ |
136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware maintenance
and other services revenues |
|
$ |
380 |
|
|
$ |
388 |
|
|
$ |
402 |
|
|
|
RECONCILIATION OF NON-GAAP TO
GAAP |
|
EFFECTIVE TAX RATE |
|
|
|
|
|
|
|
Q3'FY17 |
|
|
Q2'FY17 |
|
|
Q3'FY16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP effective
tax rate |
|
|
20.2 |
% |
|
|
23.2 |
% |
|
|
6.1 |
% |
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
Tax
effect of non-GAAP adjustments |
|
|
(1.6 |
)% |
|
|
(5.9 |
)% |
|
|
8.8 |
% |
Non-GAAP
effective tax rate |
|
|
18.6 |
% |
|
|
17.3 |
% |
|
|
14.9 |
% |
|
|
RECONCILIATION OF NET CASH PROVIDED BY
OPERATING ACTIVITIES |
|
TO FREE CASH FLOW (NON-GAAP) |
|
(In millions) |
|
|
|
|
|
|
|
Q3'FY17 |
|
|
Q2'FY17 |
|
|
Q3'FY16 |
|
Net cash provided by
operating activities |
|
$ |
235 |
|
|
$ |
158 |
|
|
$ |
355 |
|
Purchases of property
and equipment |
|
|
(45 |
) |
|
|
(56 |
) |
|
|
(41 |
) |
Free cash
flow |
|
$ |
190 |
|
|
$ |
102 |
|
|
$ |
314 |
|
Some items may not add or recalculate due to rounding.
|
|
NETAPP, INC. |
|
RECONCILIATION OF NON-GAAP GUIDANCE TO
GAAP |
|
EXPRESSED AS EARNINGS PER SHARE |
|
FOURTH QUARTER FISCAL 2017 |
|
|
|
|
|
|
|
|
Fourth Quarter |
|
|
|
Fiscal 2017 |
|
|
|
|
|
|
Non-GAAP Guidance - Net
Income Per Share |
|
$0.79 - $0.84 |
|
|
|
|
|
|
Adjustments of Specific
Items to Net Income |
|
|
|
|
Per Share
for the Fourth Quarter Fiscal 2017: |
|
|
|
|
Amortization of intangible assets |
|
|
(0.05 |
) |
Stock-based compensation expense |
|
|
(0.16 |
) |
Income
tax effect of non-GAAP adjustments |
|
|
0.02 |
|
Total Adjustments |
|
|
(0.19 |
) |
|
|
|
|
|
GAAP Guidance - Net
Income Per Share |
|
$0.60 - $0.65 |
|
|
|
|
|
Press Contact:
Judy Radlinsky
NetApp
1 408 822 6527
judy.radlinsky@netapp.com
Investor Contact:
Kris Newton
NetApp
1 408 822 3312
kris.newton@netapp.com
NetApp (NASDAQ:NTAP)
Historical Stock Chart
From Mar 2024 to Apr 2024
NetApp (NASDAQ:NTAP)
Historical Stock Chart
From Apr 2023 to Apr 2024