NetApp Announces Results for Third Quarter Fiscal Year 2013

NetApp Announces Results for Third Quarter Fiscal Year 2013 
Reports Q3 FY'13 Revenues of $1.630 Billion; Non-GAAP Earnings per
Share of $0.67 
SUNNYVALE, CA -- (Marketwire) -- 02/13/13 --  NetApp (NASDAQ: NTAP)
today reported results for the third quarter of fiscal year 2013,
which ended January 25, 2013. Revenues for the third quarter of
fiscal year 2013 totaled $1.630 billion and were in line with prior
guidance. Revenues for the same period a year ago totaled $1.566
billion. 
For the third quarter of fiscal year 2013, GAAP net income was $158
million, or $0.43 per share,(1) compared to GAAP net income of $120
million, or $0.32 per share for the same period a year ago. Non-GAAP
net income for the third quarter of fiscal year 2013 was $243
million, or $0.67 per share,(2) compared to non-GAAP net income of
$216 million, or $0.58 per share for the same period a year ago. 
Revenues for the first nine months of fiscal year 2013 totaled $4.616
billion compared to revenues of $4.531 billion for the first nine
months of the prior fiscal year. GAAP net income for the first nine
months of fiscal year 2013 totaled $332 million, or $0.90 per share,
compared to GAAP net income of $425 million, or $1.10 per share for
the first nine months of the prior fiscal year. Non-GAAP net income
for the first nine months of fiscal year 2013 totaled $588 million,
or $1.60 per share, compared to non-GAAP net income of $674 million,
or $1.75 per share for the first nine months of the prior fiscal
year. 
"NetApp delivered solid financial results again this quarter. The
value proposition of Data ONTAP(R) for shared storage infrastructures
and the price performance characteristics of the E-series for
dedicated storage infrastructures helped drive strong growth in our
branded business," said Tom Georgens, president and CEO. "The robust
adoption of clustered Data ONTAP, our industry-leading flash
portfolio, and our best-of-breed partnerships position us well for
continued growth." 
Outlook 
NetApp's outlook for the fourth quarter of fiscal year 2013 is based
on current business expectations, market conditions, and continued
uncertainty in the macroeconomic environment. 


 
--  NetApp estimates revenue for the fourth quarter of fiscal year 2013 to
    be i
n the range of $1.700 billion to $1.800 billion.
--  NetApp estimates GAAP earnings per share for the fourth quarter of
    fiscal year 2013 to be approximately $0.43 to $0.48 per share. NetApp
    estimates non-GAAP earnings per share for the fourth quarter of fiscal
    year 2013 to be approximately $0.65 to $0.70 per share.
--  NetApp estimates that the share count for the fourth quarter of fiscal
    year 2013 will increase to approximately 372 million shares.

  
Business Highlights 
During the third quarter of fiscal year 2013, NetApp extended its
product and technology innovation leadership, strengthened its
alliance ecosystem of strategic best-of-breed partnerships, and
continued to be recognized as one of the world's best places to work.
On the product front, NetApp announced enhancements to its FAS3000
storage systems and its E-Series platform to address customers'
varied workload environments. NetApp also deepened its partnerships
with industry leaders Cisco and Citrix, and announced a new
integration with Amazon Web Services (AWS). Finally, NetApp became
the official data storage provider of the NFL.  
Highlights include: 
 NetApp Acquires ionGrid 


 
--  NetApp has completed the acquisition of ionGrid, a privately-held
    software company based in Mountain View, Calif. The acquisition
    provides NetApp customers with a secure, simple to use solution for
    accessing enterprise file shares from mobile devices. Financial terms
    of the acquisition are not being disclosed at this time.

  
FAS and E-Series Innovation Helps Customers Fuel Growth 


 
--  New FAS midrange storage systems provide foundation for agile data
    infrastructure. The new FAS3220 and FAS3250 systems are flash-enabled
    and leverage clustered Data ONTAP to address customer requirements for
    performance and nonstop operations. Both systems help enterprises and
    midsized businesses that are consolidating operations onto a shared
    storage platform improve performance by up to 80% and increase storage
    capacity up to 100% over existing midrange products.
--  Customers accelerate big data innovation and analysis with enhanced
    E-Series storage platform. The updated E-Series platform includes the
    addition of SSD cache for improved performance, a broadening of
    network interface support for the E5400 storage system for increased
    connectivity and network flexibility, and new mirroring and
    replication services for greater data protection. The enhanced
    platform provides customers with the foundation to build innovative
    storage systems that deliver superior performance for the most
    challenging big data workloads.

  
Deeper Integration with Partners Enables Customers to Innovate in the
Cloud 


 
--  NetApp and Cisco expand partnership to unify branch office, data
    center, and public cloud environments with FlexPod(R) architecture.
    The partnership expansion includes efforts in technology integration,
    solution development, and continued go-to-market collaboration to make
    it easier for customers to deploy and access next-generation cloud
    infrastructure solutions. The announcement builds on the already
    strong momentum FlexPod is experiencing with more than 2,100 customers
    across more than 35 countries and over 700 channel partners.
--  NetApp teams with Amazon Web Services to help customers connect their
    existing infrastructure to the AWS cloud. NetApp unveiled NetApp(R)
    Private Storage for AWS, an enterprise storage solution that allows
    customers to replicate data from on-premise NetApp storage
    environments to NetApp Private Storage, and through AWS Direct Connect
    they can leverage on-demand cloud services. With this solution
    customers can build an agile cloud infrastructure that balances
    internal data center resources along with AWS cloud resources to best
    meet their business needs.
--  NetApp and Citrix collaborate on secure file sharing and on-premise
    storage solution for enterprise customers. Citrix ShareFile customers
    now have access to NetApp FAS and V-Series storage systems running
    clustered Data ONTAP. The new solution will allow customers who store
    their data on premise to leverage NetApp Data ONTAP software to access
    data, scale performance and capacity, reduce data center footprint,
    and reduce costs.

  
Customers Build on NetApp to Accelerate Business Operations 


 
--  NetApp data storage delivers and protects NFL and Super Bowl XLVII
    game-day data. Starting with Super Bowl XLVII in New Orleans on
    February 3, 2013, NetApp kicked off a two-year relationship with the
    NFL, making NetApp the official data storage provider of the NFL. The
    NFL will leverage the FAS2220 and FAS2240 storage systems to enable
    its support of league-wide mission-critical activities.
--  Sauber F1 Team relies on NetApp to thrive in Formula 1 racing. Data is
    one of the Sauber F1 Teams greatest competitive advantages and as a
    result the team has built its IT infrastructure on a NetApp storage
    foundation. The Sauber F1 Team leverages a FlexPod architecture and
    NetApp MetroCluster(TM) solution for the reliability, simplicity,
    efficiency,
 and high availability required to help drive the team's
    success.

  
NetApp Reinforces Its Standing as a Great Place to Work 


 
--  For the second consecutive year, NetApp was ranked #6 on FORTUNE
    magazine's "100 Best Companies to Work For" list for 2013. This is the
    fifth consecutive year that NetApp has ranked in the top 10 and
    seventh consecutive year it has ranked in the top 15.

  
Webcast and Conference Call Information
 The NetApp third quarter
fiscal year 2013 conference call will be broadcast live on the
Internet at investors.netapp.com on Wednesday, February 13, 2013, at
2:30 p.m. Pacific Time. This press release and any other information
related to the call will be posted on the Web site at that location.
An audio replay Webcast will be available after 4:30 p.m. Pacific
Time on the Web site. 
NetApp uses a hybrid format for disclosing key financial information
associated with our quarterly results. Concurrent with the press
release, NetApp posts a supplemental commentary with financial
information and statistics to our Web site 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 Outlook section relating to our forecasts for the fourth
quarter of fiscal year 2013, the benefits to us and our customers of
our products and services, the expected benefits of partnerships,
alliances and acquisitions, and our statements regarding future
repurchases of our common stock, all of which involve risk and
uncertainty. Actual results may differ materially from our statements
and projections for a variety of reasons, including general economic
and market conditions; and matters specific to our business, such as
customer demand for and acceptance of our products and services.
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, Data ONTAP, FlexPod, and
MetroCluster are trademarks or registered trademarks of NetApp, Inc.
All other marks are the property of their respective owners. 
(1)GAAP earnings per share is calculated using the diluted number of
shares for all periods presented.
 (2)Non-GAAP net income excludes
the amortization of intangible assets, stock-based compensation,
a
cquisition-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 cited above 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 hav
e excluded these items
in order to enhance investors' understanding of our ongoing
operations. The use of these non-GAAP financial measures has material
limitations because they should not be used to evaluate our Company
without reference to their corresponding GAAP financial measures. As
such, we compensate for these material limitations by using these
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)                                
                                                                            
                                           January 25, 2013  April 27, 2012 
                                           ---------------- ----------------
                                                                            
                  ASSETS                                                    
                                                                            
Current assets:                                                             
  Cash, cash equivalents and investments   $        6,723.9 $        5,398.5
  Accounts receivable, net                            633.8            830.9
  Inventories                                         172.9            161.5
  Other current assets                                518.0            435.6
                                           ---------------- ----------------
    Total current assets                            8,048.6          6,826.5
                                                                            
Property and equipment, net                         1,189.2          1,137.2
Goodwill and other intangible assets, net           1,171.9          1,141.2
Other non-current assets                              456.2            427.4
                                           ---------------- ----------------
  Total assets                             $       10,865.9 $        9,532.3
                                           ================ ================
                                                                            
                                                                            
   LIABILITIES AND STOCKHOLDERS' EQUITY                                     
                                                                            
Current liabilities:                                                        
  Accounts payable                         $          221.2 $          233.1
  Accrued compensation and other current                                    
   liabilities                                        679.2            717.9
  Current portion of long-term debt                 1,243.3          1,202.3
  Short-term deferred revenue                       1,477.3          1,366.5
                                           ---------------- ----------------
    Total current liabilities                       3,621.0          3,519.8
                                           ---------------- ----------------
                                                                            
Long-term debt                                        994.3                -
Other long-term liabilities                           226.9            206.9
Long-term deferred revenue                          1,398.7          1,449.4
                                           ---------------- ----------------
    Total liabilities                               6,240.9          5,176.1
                                           ---------------- ----------------
                                                                            
Convertible Notes                                         -             62.6
                                                                            
Stockholders' equity                                4,625.0          4,293.6
                                           ---------------- ----------------
  Total liabilities and stockholders'                                       
   equity                                  $       10,865.9 $        9,532.3
                                           ================ ================
                                                                            
                                                                            
                                                                            
                                                                            
                                NETAPP, INC.                                
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
             (In millions, except net income per share amounts)             
                                (Unaudited)                                 
                                                                            
                                  Three Months Ended     Nine Months Ended  
                                 --------------------  -------------------- 
                                  January    January    January    January  
                                  25, 2013   27, 2012   25, 2013   27, 2012 
                                 ---------  ---------  ---------  --------- 
                                                                            
Revenues:                                                                   
  Product                        $ 1,060.7  $ 1,062.7  $ 2,954.5  $ 3,044.6 
  Software entitlements and                                                 
   maintenance                       228.6      203.5      666.5      599.7 
  Service                            340.8      299.3      994.9      886.4 
                                 ---------  ---------  ---------  --------- 
    Net revenues                   1,630.1    1,565.5    4,615.9    4,530.7 
                                 ---------  ---------  ---------  --------- 
                                                                            
Cost of revenues:                                                           
  Cost of product                    512.5      517.8    1,442.0    1,415.9 
  Cost of software entitlements                                             
   and maintenance                     7.3        6.2       20.9       17.1 
  Cost of service                    145.4      133.0      424.1      379.3 
                                 ---------  ---------  ---------  --------- 
    Total cost of revenues           665.2      657.0    1,887.0    1,812.3 
                                 ---------  ---------  ---------  --------- 
Gross profit                         964.9      908.5    2,728.9    2,718.4 
                                 ---------  ---------  ---------  --------- 
                                                                            
Operating expenses:                                                         
  Sales and marketing                493.5      477.0    1,464.6    1,385.9 
  Research and development           215.6      208.3      660.8      606.6 
  General and administrative          66.2       63.2      198.4      193.4 
  Acquisition-related expense          1.7        3.5        1.7        7.4 
                                 ---------  ---------  ---------  --------- 
    Total operating expenses         777.0      752.0    2,325.5    2,193.3 
                                 ---------  ---------  ---------  --------- 
                                                                            
Income from operations            
   187.9      156.5      403.4      525.1 
                                                                            
Other expense, net:                                                         
  Interest income                     10.3        8.7       32.1       27.6 
  Interest expense                   (24.0)     (18.9)     (63.7)     (54.7)
  Other income (expense), net          1.6        0.6        5.9       (0.1)
                                 ---------  ---------  ---------  --------- 
    Total other expense, net         (12.1)      (9.6)     (25.7)     (27.2)
                                 ---------  ---------  ---------  --------- 
                                                                            
Income before income taxes           175.8      146.9      377.7      497.9 
                                                                            
Provision for income taxes            17.7       27.3       46.2       73.2 
                                 ---------  ---------  ---------  --------- 
                                                                            
Net income                       $   158.1  $   119.6  $   331.5  $   424.7 
                                 =========  =========  =========  ========= 
                                                                            
Net income per share:                                                       
  Basic                          $    0.44  $    0.33  $    0.91  $    1.17 
                                 =========  =========  =========  ========= 
                                                                            
  Diluted                        $    0.43  $    0.32  $    0.90  $    1.10 
                                 =========  =========  =========  ========= 
                                                                            
Shares used in net income per                                               
 share calculations:                                                        
  Basic                              359.5      360.3      362.5      364.0 
                                 =========  =========  =========  ========= 
                                                                            
  Diluted                            364.7      373.7      368.1      385.1 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                                                                            
                                NETAPP, INC.                                
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW               
                               (In millions)                                
                                (Unaudited)                                 
                                                                            
                                                                            
                                     Three Months Ended  Nine Months Ended  
                                    ------------------- ------------------- 
                                     January   January   January   January  
                                     25, 2013  27, 2012  25, 2013  27, 2012 
                                    --------- --------- --------- --------- 
                                                                            
Cash flows from operating                                                   
 activities:                                                                
  Net income                        $   158.1 $   119.6 $   331.5 $   424.7 
  Adjustments to reconcile net                                              
   income to net cash provided by                                           
   operating activities:                                                    
    Depreciation and amortization        86.4      73.6     255.5     210.5 
    Stock-based compensation             67.3      76.7     211.5     197.8 
    Accretion of discount and                                               
     issuance costs on debt              15.3      13.5      44.0      38.7 
    Shortfall (excess tax benefit)                                          
     from stock-based compensation       (9.4)      4.0     (53.0)    (80.7)
    Other, net                            3.4      (1.9)     (8.3)      2.8 
  Changes in assets and                                                     
   liabilities, net of acquisitions                                         
   of businesses:                                                           
    Accounts receivable                 (19.8)    (59.8)    193.1      55.8 
    Inventories                          40.3       9.5     (11.4)     (8.8)
    Accounts payable                    (29.9)    (56.0)    (16.0)    (10.4)
    Accrued compensation and other                                          
     current liabilities                (19.2)     12.6     (35.1)   (160.5)
    Deferred revenue                    105.3     107.6      62.7     234.5 
    Changes in other operating                                              
     assets and liabilities, net        (32.7)    (30.2)    (43.8)    (24.4)
                                    --------- --------- --------- --------- 
      Net cash provided by                                                  
       operating activities             365.1     269.2     930.7     880.0 
                                    --------- --------- --------- --------- 
Cash flows from investing                                                   
 activities:                                                                
  Redemptions (purchases) of                                                
   investments, net                     110.7     (61.6)    204.1     (21.2)
  Purchases of property and                                                 
   equipment                           (110.7)    (91.3)   (239.7)   (282.9)
  Acquisitions of businesses, net                                           
   of cash acquired                     (89.4)        -     (89.4)   (480.0)
  Other investing activities, net         0.2      (2.0)      3.0         - 
                                    --------- --------- --------- --------- 
      Net cash used in investing                                            
       activities                       (89.2)   (154.9)   (122.0)   (784.1)
                                    --------- --------- --------- --------- 
Cash flows from financing                                                   
 activities:                                                                
  Issuance of common stock               50.4      49.1      95.5     101.0 
  Repurchase and retirement of                                              
   common stock                         (61.7)        -    (410.0)   (600.0)
  Excess tax benefit (shortfall)                                            
   from stock-based compensation          9.4      (4.0)     53.0      80.7 
  Issuance of long-term debt, net       987.3         -     987.3         - 
  Other financing activities, net        (0.4)      1.5      (0.7)      3.1 
                                    --------- --------- --------- --------- 
      Net cash provided by (used                                            
       in) financing activities         985.0      46.6     725.1    (415.2)
                                    --------- --------- --------- --------- 
                                                                            
Effect of exchange rate changes on                                          
 cash and cash equivalents                4.0      (9.0)     (1.9)    (17.1)
                                                                            
Net increase (decrease) in cash and                                         
 cash equivalents                     1,264.9     151.9   1,531.9    (336.4)
Cash and cash equivalents:                                                  
  Beginning of period                 1,816.8   2,269.0   1,549.8   2,757.3 
                                    --------- --------- --------- --------- 
  End of period                     $ 3,081.7 $ 2,420.9 $ 3,081.7 $ 2,420.9 
                                    ========= ========= ========= ========= 
                                                                            
                                                                            

 
                                                                            
                                                                            
                                NETAPP, INC.                                
                    RECONCILIATION OF NON-GAAP AND GAAP                     
           IN THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS           
             (In millions, except net income per share amounts)             
                                (Unaudited)                                 
                                                                            
                                  Three Months Ended     Nine Months Ended  
                                 --------------------  -------------------- 
                                  January    January    January    January  
                                  25, 2013   27, 2012   25, 2013   27, 2012 
                                 ---------  ---------  ---------  --------- 
                                                                            
SUMMARY RECONCILIATION OF NET                                               
 INCOME                                                                     
NET INCOME                       $   158.1  $   119.6      331.5      424.7 
                                                                            
Adjustments:                                                                
  Amortization of intangible                                                
   assets                             21.4       21.6       64.3       67.6 
  Stock-based compensation            67.3       76.7      211.5      197.8 
  Acquisition-related expense          1.7        3.5        1.7       15.4 
  Non-cash interest expense           15.3       13.5       44.0       38.7 
  Gain on investments                 (0.7)      (0.7)      (0.7)      (0.7)
  Income tax effect of non-GAAP                                             
   adjustments                       (20.4)     (18.2)     (64.2)     (69.7)
                                                                            
                                 ---------  ---------  ---------  --------- 
NON-GAAP NET INCOME              $   242.7  $   216.0  $   588.1  $   673.8 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
NET INCOME PER SHARE             $   0.434  $   0.320      0.901      1.103 
                                                                            
Adjustments:                                                                
  Amortization of intangible                                                
   assets                            0.059      0.058      0.175      0.175 
  Stock-based compensation           0.184      0.205      0.574      0.514 
  Acquisition-related expense        0.005      0.010      0.005      0.040 
  Non-cash interest expense          0.042      0.036      0.119      0.101 
  Gain on investments               (0.002)    (0.002)    (0.002)    (0.002)
  Income tax effect of non-GAAP                                             
   adjustments                      (0.057)    (0.049)    (0.174)    (0.181)
                                                                            
                                 ---------  ---------  ---------  --------- 
NON-GAAP NET INCOME PER SHARE    $   0.665  $   0.578  $   1.598  $   1.750 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
                                 NETAPP, INC.                               
                           SUPPLEMENTAL INFORMATION                         
                                (In millions)                               
                                 (Unaudited)                                
                                                                            
                                     Three Months Ended January 25, 2013    
                               ---------------------------------------------
                                                                            
                                 Amortization of                Acquisition-
                                   Intangible     Stock-based     related   
                                     Assets       Compensation    Expense   
                                ---------------- ------------- -------------
                                                                            
                                                                            
Cost of product revenues        $           13.9 $         1.4 $           -
Cost of service revenues                       -           4.8             -
Sales and marketing expenses                 7.5          31.9             -
Research and development                                                    
 expenses                                      -          20.8             -
General and administrative                                                  
 expenses                                      -           8.4             -
Acquisition-related expense                    -             -           1.7
Interest expense                               -             -             -
Other income (expense), net                    -             -             -
                                ---------------- ------------- -------------
Effect on income before income                                              
 taxes                          $           21.4 $        67.3 $         1.7
                                ================ ============= =============
                                                                            
 
                                                                       
                                  Non-cash                             
                                  Interest      Gain on                
                                   Expense    Investments     Total    
                                ------------ ------------  ----------- 
                                                                       
                                                                       
Cost of product revenues        $          - $          -  $      15.3 
Cost of service revenues                   -            -          4.8 
Sales and marketing expenses               -            -         39.4 
Research and development                                               
 expenses                                  -            -         20.8 
General and administrative                                             
 expenses                                  -            -          8.4 
Acquisition-related expense                -            -          1.7 
Interest expense                        15.3            -         15.3 
Other income (expense), net                -         (0.7)        (0.7)
                                ------------ ------------  ----------- 
Effect on income before income                                         
 taxes                          $       15.3 $       (0.7) $     105.0 
                                ============ ============  =========== 
                                                                       
                                                                            
                                                                            
                                    Three Months Ended January 27, 2012     
                               ---------------------------------------------
                                                                            
                                 Amortization of                Acquisition-
                                   Intangible     Stock-based     related   
                                     Assets       Compensation    Expense   
                                ---------------- ------------- -------------
                                                                            
Cost of product revenues        $           13.9 $         1.6 $           -
Cost of service revenues                       -           5.7             -
Sales and marketing expenses                 7.6          37.5             -
Research and development                                                    
 expenses                                    0.1          22.8             -
General and administrative                                                  
 expenses                                      -           9.1             -
Acquisition-related expense                    -             -           3.5
Interest expense                               -             -             -
Other income (expense), net                    -             -             -
                                ---------------- ------------- -------------
Effect on income before income                                              
 taxes                          $           21.6 $        76.7 $         3.5
                                ================ ============= =============
                                                                            
 
                                                                       
                                  Non-cash                             
                                  Interest      Gain on                
                                   Expense    Investments     Total    
                                ------------ ------------  ----------- 
                                                                       
Cost of product revenues        $          - $          -  $      15.5 
Cost of service revenues                   -            -          5.7 
Sales and marketing expenses               -            -         45.1 
Research and development                                               
 expenses                                  -            -         22.9 
General and administrative                                             
 expenses                                  -            -          9.1 
Acquisition-related expense                -            -          3.5 
Interest expense                        13.5            -         13.5 
Other income (expense), net                -         (0.7)        (0.7)
                                ------------ ------------  ----------- 
Effect on income before income                                         
 taxes                          $       13.5 $       (0.7) $     114.6 
                                ============ ============  =========== 
                                                                       
                                                                            
                                     Nine Months Ended January 25, 2013     
                               ---------------------------------------------
                                                                            
                                 Amortization of                Acquisition-
                                   Intangible     Stock-based     related   
                                     Assets       Compensation    Expense   
                                ---------------- ------------- -------------
                                                                            
                                                                            
Cost of product revenues        $           41.8 $         4.7 $           -
Cost of service revenues                       -          15.0             -
Sales and marketing expense                 22.4         101.8             -
Research and development                                                    
 expense                                     0.1          63.8             -
General and administrative                                                  
 expense                                       -     
     26.2             -
Acquisition-related expense                    -             -           1.7
Interest expense                               -             -             -
Other income (expense), net                    -             -             -
                                ---------------- ------------- -------------
Effect on income before income                                              
 taxes                          $           64.3 $       211.5 $         1.7
                                ================ ============= =============
                                                                            
 
                                                                       
                                  Non-cash                             
                                  Interest      Gain on                
                                   Expense    Investments     Total    
                                ------------ ------------  ----------- 
                                                                       
                                                                       
Cost of product revenues        $          - $          -  $      46.5 
Cost of service revenues                   -            -         15.0 
Sales and marketing expense                -            -        124.2 
Research and development                                               
 expense                                   -            -         63.9 
General and administrative                                             
 expense                                   -            -         26.2 
Acquisition-related expense                -            -          1.7 
Interest expense                        44.0            -         44.0 
Other income (expense), net                -         (0.7)        (0.7)
                                ------------ ------------  ----------- 
Effect on income before income                                         
 taxes                          $       44.0 $       (0.7) $     320.8 
                                ============ ============  =========== 
                                                                       
                                                                            
                                                                            
                                     Nine Months Ended January 27, 2012     
                               ---------------------------------------------
                                                                            
                                 Amortization of                Acquisition-
                                   Intangible     Stock-based     related   
                                     Assets       Compensation    Expense   
                                ---------------- ------------- -------------
                                                                            
Cost of product revenues        $           41.8 $         4.1 $         5.4
Cost of service revenues                       -          13.8             -
Sales and marketing expense                 25.6          96.5             -
Research and development                                                    
 expense                                     0.2          57.0           2.6
General and administrative                                                  
 expense                                       -          26.4             -
Acquisition-related expense                    -             -           7.4
Interest expense                               -             -             -
Other income (expense), net                    -             -             -
                                ---------------- ------------- -------------
Effect on income before income                                              
 taxes                          $           67.6 $       197.8 $        15.4
                                ================ ============= =============
                                                                            
                                                                            
 
                                                                       
                                  Non-cash                             
                                  Interest      Gain on                
                                   Expense    Investments     Total    
                                ------------ ------------  ----------- 
                                                                       
Cost of product revenues        $          - $          -  $      51.3 
Cost of service revenues                   -            -         13.8 
Sales and marketing expense                -            -        122.1 
Research and development                                               
 expense                                   -            -         59.8 
General and administrative                                             
 expense                                   -            -         26.4 
Acquisition-related expense                -            -          7.4 
Interest expense                        38.7            -         38.7 
Other income (expense), net                -         (0.7)        (0.7)
                                ------------ ------------  ----------- 
Effect on income before income                                         
 taxes                          $       38.7 $       (0.7) $     318.8 
                                ============ ============  =========== 
                                                                       
                                                                       
                                                                            
                                                                            
                                NETAPP, INC.                                
                 RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP                
                       EXPRESSED AS EARNINGS PER SHARE                      
                             FOURTH QUARTER 2013                            
                                 (Unaudited)                                
                                                                            
                                                                            
                                                       Fourth Quarter       
                                                            2013            
                                                ----------------------------
                                                                            
Non-GAAP Guidance - Net Income Per Share                $0.65 - $0.70       
                                                                            
                                                                            
Adjustments of Specific Items to                                            
  Net Income Per Share for the Fourth Quarter                               
   2013:                                                                    
                                                                            
  Amortization of intangible assets                        (0.06)           
  Stock-based compensation expense                         (0.18)           
  Non-cash interest expense                                (0.04)           
  Income tax effect                                         0.06            
                                                ----------------------------
Total Adjustments                                          (0.22)           
                                                                            
GAAP Guidance - Net Income Per Share                    $0.43 - $0.48       

  
Press Contact:
Ryan Lowry
NetApp
(408) 822-7544
ryanl@netapp.com 
Investor Contact:
Kris Newton
NetApp
(408) 822-3312
kris.newton@netapp.com 
 
 
Press spacebar to pause and continue. Press esc to stop.