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NetApp Announces Results for Second Quarter Fiscal Year 2013

Reports Q2 FY'13 Revenues of $1.541 Billion; Non-GAAP Earnings per Share of $0.51 -- Company Increases Stock Repurchase Authorization

SUNNYVALE, CA -- (Marketwire) -- 11/14/12 -- NetApp (NASDAQ: NTAP) today reported results for the second quarter of fiscal year 2013, which ended October 26, 2012. Revenues for the second quarter of fiscal year 2013 totaled $1.541 billion and were in line with prior guidance. Revenues for the same period a year ago totaled $1.507 billion.

For the second quarter of fiscal year 2013, GAAP net income was $110 million, or $0.30 per share,(1) compared to GAAP net income of $166 million, or $0.44 per share for the same period a year ago. Non-GAAP net income for the second quarter of fiscal year 2013 was $189 million, or $0.51 per share,(2) compared to non-GAAP net income of $236 million, or $0.63 per share for the same period a year ago.

Revenues for the first six months of fiscal year 2013 totaled $2.986 billion compared to revenues of $2.965 billion for the first six months of the prior fiscal year. GAAP net income for the first six months of fiscal year 2013 totaled $173 million, or $0.47 per share, compared to GAAP net income of $305 million, or $0.78 per share for the first six months of the prior fiscal year. Non-GAAP net income for the first six months of fiscal year 2013 totaled $345 million, or $0.93 per share, compared to non-GAAP net income of $458 million, or $1.17 per share for the first six months of the prior fiscal year.

"NetApp produced healthy financial results in the second quarter with revenue roughly at the midpoint of and EPS above our guidance range, despite a difficult environment. We saw a strong uptake of NetApp® Data ONTAP® 8 and clustered Data ONTAP, as customers are looking to build agile data infrastructure environments with intelligent data management, nearly unlimited scalability, and nondisruptive operations," said Tom Georgens, president and CEO. "We also saw momentum in our partnering strategy with continued FlexPod® growth and a record high revenue contribution from Arrow and Avnet. Our focus on delivering best-of-breed storage solutions and the leverage we gain through go-to-market and channel partners will enable NetApp to grow our business and gain share."

NetApp also announces it will continue its share repurchase program with an additional $1.5 billion authorized. Under this program, NetApp can purchase shares of its outstanding common stock through open market and in privately negotiated transactions at prices deemed appropriate by management. The timing and amount of repurchase transactions under the program will depend on market conditions, corporate considerations, and regulatory requirements. The purchases will be funded from available working capital.

Outlook

NetApp's outlook for the third 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 third quarter of fiscal year 2013 to be in the range of $1.575 billion to $1.675 billion.
  • NetApp estimates GAAP earnings per share for the third quarter of fiscal year 2013 to be approximately $0.29 to $0.34 per share. NetApp estimates non-GAAP earnings per share for the third quarter of fiscal year 2013 to be approximately $0.53 to $0.58 per share.
  • NetApp estimates that the share count for the third quarter of fiscal year 2013 will decrease to approximately 365 million shares.

Business Highlights
NetApp is built on a culture of innovation that aims to provide customers with the best experience possible. This comes not only from NetApp's direct relationship with customers, but also by delivering compelling technology solutions and forging best-in-class partnerships.

In its second quarter of fiscal year 2013, NetApp's culture of innovation was on display across every aspect of its business. NetApp continued to strengthen and extend its best-of-breed partner ecosystem by announcing new joint solutions and key integrations with industry leaders such as Cisco, Microsoft, VMware, Oracle, and Citrix that will help customers of all sizes accelerate their businesses. A foundational component to several of the new joint offerings is NetApp's Data ONTAP, the world's #1 storage operating system.

Highlights include:

NetApp Announces Definitive Agreement to Acquire CacheIQ, Inc.

  • NetApp has entered into a definitive agreement to acquire CacheIQ, Inc., a privately held storage solutions company based in Austin, Texas. The acquisition will provide NetApp with intellectual property that extends its capabilities to support nondisruptive operations for enterprise data center environments. NetApp will integrate this intellectual property into its product offerings over time. Financial terms of the acquisition are not being disclosed at this time.

Best-in-Class Partner Integration Fuels Innovation for Customers

  • NetApp and Cisco expand data center infrastructure solutions for midsized businesses to large enterprises. The FlexPod data center platform now features support and validation for VMware vSphere on NetApp clustered Data ONTAP to help organizations drive growth by adding nodes to their storage cluster creating large storage pools that span storage devices and can scale almost infinitely. The two companies also introduced ExpressPod, a prepackaged and tested solution for growing small and medium-sized organizations that require increased IT efficiency and simplicity. Celebrating its two-year anniversary, more than 1,500 organizations in 35 countries are accelerating their transition to the cloud with FlexPod. Additionally, more than 660 certified FlexPod Partners around the world are helping these customers deploy their infrastructures more quickly and easily.
  • NetApp and Microsoft technology collaboration drives public, private, and hybrid cloud migration. NetApp announced support for Windows Server 2012 with storage solutions for server and desktop virtualization, storage and availability, Web and application platform development, and private cloud deployment. For organizations of any size and in any industry, this close collaboration simplifies and accelerates how storage is pooled, provisioned, accessed, and managed in Windows environments.
  • NetApp and VMware team up to accelerate customers' transition to an agile data infrastructure. NetApp and VMware continue to build on their nearly 10 year partnership by unveiling integration between VMware vSphere 5.1 and NetApp clustered Data ONTAP. The integration will also enable customers to securely manage and deploy infinite storage pools and to deliver nondisruptive migration of data among hundreds of virtual machines at a time. Customers will be able to achieve continuous data access and uninterrupted business operations as their infrastructures grow and scale in capacity and performance.
  • NetApp and Oracle integration helps customers reduce cost and complexity of managing business-critical applications. NetApp achieved Oracle Validated Integration of the NetApp Storage System Plug-In version 1.0 with Oracle Enterprise Manager 12c, extending the application-to-disk coverage of Oracle Enterprise Manager environments that include NetApp managed storage. As a result, customers will benefit from improved risk management and smoother upgrade capabilities, leading to lower total cost of ownership and greater overall satisfaction.
  • NetApp and Citrix collaborate to simplify cloud storage. NetApp and Citrix announced an extension of their current collaboration aimed at accelerating the adoption of enterprise cloud deployments. The two companies will provide a fully integrated cloud orchestration and storage solution that will address storage automation, resource allocation, and virtual machine backup and recovery. The move greatly simplifies cloud storage deployment for customers and will result in faster transitions to private and hybrid clouds.

NetApp Enhances Flash Portfolio and Ecosystem

  • NetApp Flash Accel helps customers enhance application and server performance. NetApp introduced NetApp Flash Accel to speed customer application performance by turning server-side Flash into a cache for storing "hot," frequently accessed data. From servers to their back-end storage, cost- and performance-conscious system architects can now balance how Flash is used within their organizations to maximize application performance, minimize rising IT costs, preserve high availability, protect data, and simplify management. NetApp also expanded its Alliance Partner Program to embrace hardware and software server-caching partners looking to develop solutions with NetApp. This will provide the widest coverage for joint customers' infrastructures as they deploy server-side caching to deliver increased ROI.
  • NetApp signs technology reseller agreement with Fusion-io. As part of its commitment to providing customers with end-to-end Flash technologies, NetApp entered into a resale agreement with Fusion-io, a leader in Flash memory solutions. NetApp will continue to resell Fusion-io ioMemory platform products and two server caching software products: ioTurbine for virtualized environments and Direct Cache for nonvirtualized environments.

NetApp Recognized for Its Culture and Innovative Spirit

  • NetApp repeats as one of the world's most innovative companies. For the second consecutive year, NetApp made Forbes magazine's "World's Most Innovative Companies" list for 2012. As the only storage vendor to make this year's list, the recognition is a testament to NetApp's 20 years of innovation and true innovative spirit which continues to thrive today to help customers and partners achieve great business outcomes.
  • NetApp cements its standing as one of the world's best places to work. NetApp was named the #3 best workplace in the world by the Great Place to Work Institute on November 13, 2012. It marks the second consecutive year that NetApp finished in the top 5 of this exclusive list and is a testament to the company's unique workplace culture and commitment to employee excellence which help produce great results for NetApp customers and partners.

Webcast and Conference Call Information
The NetApp second quarter fiscal year 2013 conference call will be broadcast live on the Internet at investors.netapp.com on Wednesday, November 14, 2012, at 2 p.m. Pacific Time. This press release and any other information related to the call will also be posted on the Web site at that location. An audio replay Webcast will be available after 4 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 third quarter of fiscal year 2013, the benefits to us and our customers of our products and services, the expected benefits of partnerships and alliances, 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 the continuing deliberations regarding future tax and fiscal policy in the U.S.; 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, Flash Accel and FlexPod are 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, acquisition-related income and expenses, restructuring and other charges, asset impairments, non-cash interest expense associated with our convertible 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.

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 convertible 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 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)

                                          October 26, 2012   April 27, 2012
                                         ----------------- -----------------

                  ASSETS

Current assets:
  Cash, cash equivalents and investments $         5,571.0 $         5,398.5
  Accounts receivable, net                           615.0             830.9
  Inventories                                        213.2             161.5
  Other current assets                               488.5             435.6
                                         ----------------- -----------------
    Total current assets                           6,887.7           6,826.5

Property and equipment, net                        1,132.4           1,137.2
Goodwill and other intangible assets, net          1,098.3           1,141.2
Other non-current assets                             435.5             427.4
                                         ----------------- -----------------
  Total assets                           $         9,553.9 $         9,532.3
                                         ================= =================


   LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                       $           246.6 $           233.1
  Accrued compensation and other current
   liabilities                                       689.2             717.9
  1.75% Convertible Senior Notes due 2013          1,229.4           1,202.3
  Short-term deferred revenue                      1,408.5           1,366.5
                                         ----------------- -----------------
    Total current liabilities                      3,573.7           3,519.8
                                         ----------------- -----------------

Other long-term liabilities                          216.3             206.9
Long-term deferred revenue                         1,361.7           1,449.4
                                         ----------------- -----------------
    Total liabilities                              5,151.7           5,176.1
                                         ----------------- -----------------

1.75% Convertible Senior Notes due 2013                  -              62.6

Stockholders' equity                               4,402.2           4,293.6
                                         ----------------- -----------------
  Total liabilities and stockholders'
   equity                                $         9,553.9 $         9,532.3
                                         ================= =================



                                NETAPP, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (In millions, except net income per share amounts)
                                (Unaudited)

                               Three Months Ended       Six Months Ended
                             ----------------------  ----------------------
                               October     October     October     October
                              26, 2012    28, 2011    26, 2012    28, 2011
                             ----------  ----------  ----------  ----------

Revenues:
  Product                    $    995.8  $  1,016.2  $  1,893.8  $  1,981.9
  Software entitlements and
   maintenance                    219.4       198.0       437.9       396.2
  Service                         326.0       292.8       654.1       587.1
                             ----------  ----------  ----------  ----------
    Net revenues                1,541.2     1,507.0     2,985.8     2,965.2
                             ----------  ----------  ----------  ----------

Cost of revenues:
  Cost of product                 477.3       460.7       929.5       898.1
  Cost of software
   entitlements and
   maintenance                      7.0         5.6        13.6        10.9
  Cost of service                 143.0       127.7       278.7       246.3
                             ----------  ----------  ----------  ----------
    Total cost of revenues        627.3       594.0     1,221.8     1,155.3
                             ----------  ----------  ----------  ----------
Gross profit                      913.9       913.0     1,764.0     1,809.9
                             ----------  ----------  ----------  ----------

Operating expenses:
  Sales and marketing             488.2       454.1       971.1       908.9
  Research and development        223.8       199.7       445.2       398.3
  General and administrative       66.6        65.1       132.2       130.2
  Acquisition-related expense         -         1.7           -         3.9
                             ----------  ----------  ----------  ----------
    Total operating expenses      778.6       720.6     1,548.5     1,441.3
                             ----------  ----------  ----------  ----------

Income from operations            135.3       192.4       215.5       368.6

Other expense, net
  Interest income                  11.0         8.3        21.8        18.9
  Interest expense                (19.8)      (16.4)      (39.7)      (35.8)
  Other income (expense), net       1.2        (0.4)        4.3        (0.7)
                             ----------  ----------  ----------  ----------
    Total other expense, net       (7.6)       (8.5)      (13.6)      (17.6)
                             ----------  ----------  ----------  ----------

Income before income taxes        127.7       183.9       201.9       351.0

Provision for income taxes         18.1        18.3        28.5        45.9
                             ----------  ----------  ----------  ----------

Net income                   $    109.6  $    165.6  $    173.4  $    305.1
                             ==========  ==========  ==========  ==========

Net income per share:
  Basic                      $     0.30  $     0.46  $     0.48  $     0.83
                             ==========  ==========  ==========  ==========
  Diluted                    $     0.30  $     0.44  $     0.47  $     0.78
                             ==========  ==========  ==========  ==========

Shares used in net income per
 share calculations:
  Basic                           362.0       361.5       364.1       365.9
                             ==========  ==========  ==========  ==========
  Diluted                         368.2       376.0       369.7       390.8
                             ==========  ==========  ==========  ==========



                                NETAPP, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                               (In millions)
                                (Unaudited)

                               Three Months Ended       Six Months Ended
                             ----------------------  ----------------------
                               October     October     October     October
                              26, 2012    28, 2011    26, 2012    28, 2011
                             ----------  ----------  ----------  ----------

Cash flows from operating
 activities:
  Net income                 $    109.6  $    165.6  $    173.4  $    305.1
  Adjustments to reconcile
   net income to net cash
   provided by operating
   activities:
    Depreciation and
     amortization                  86.7        68.4       169.1       136.9
    Stock-based compensation       65.0        63.0       144.2       121.1
    Accretion of discount and
     issuance costs on Notes       14.4        11.5        28.7        25.2
    Tax benefit from stock-
     based compensation            37.0        50.4        28.2        79.1
    Excess tax benefit from
     stock-based compensation     (38.7)      (52.6)      (43.6)      (84.7)
    Other, net                    (15.9)      (43.8)      (39.9)      (74.4)
  Changes in assets and
   liabilities, net of
   acquisition of business:
    Accounts receivable           (31.3)      (29.4)      212.9       115.6
    Inventories                    (9.5)      (25.1)      (51.7)      (18.3)
    Accounts payable              (28.0)       22.8        13.9        45.6
    Accrued compensation and
     other current
     liabilities                  130.8        75.2       (15.9)     (173.1)
    Deferred revenue                4.4        60.2       (42.6)      126.9
    Changes in other
     operating assets and
     liabilities, net              11.9         4.0       (11.1)        5.8
                             ----------  ----------  ----------  ----------
      Net cash provided by
       operating activities       336.4       370.2       565.6       610.8
                             ----------  ----------  ----------  ----------
Cash flows from investing
 activities:
  Redemptions (purchases) of
   investments, net               159.5      (205.4)       93.4        40.4
  Purchases of property and
   equipment                      (67.1)      (93.3)     (129.0)     (191.6)
  Acquisition of business             -           -           -      (480.0)
  Other investing activities,
   net                              1.5         0.3         2.8         2.0
                             ----------  ----------  ----------  ----------
      Net cash provided by
       (used in) investing
       activities                  93.9      (298.4)      (32.8)     (629.2)
                             ----------  ----------  ----------  ----------
Cash flows from financing
 activities:
  Issuance of common stock         10.1         5.3        45.1        51.9
  Repurchase and retirement
   of common stock               (198.3)     (400.0)     (348.3)     (600.0)
  Excess tax benefit from
   stock-based compensation        38.7        52.6        43.6        84.7
  Other financing activities,
   net                              1.7         1.3        (0.3)        1.6
                             ----------  ----------  ----------  ----------
      Net cash used in
       financing activities      (147.8)     (340.8)     (259.9)     (461.8)
                             ----------  ----------  ----------  ----------

Effect of exchange rate
 changes on cash and cash
 equivalents                        4.9        (5.2)       (5.9)       (8.1)

Net increase (decrease) in
 cash and cash equivalents        287.4      (274.2)      267.0      (488.3)
Cash and cash equivalents:
  Beginning of period           1,529.4     2,543.2     1,549.8     2,757.3
                             ----------  ----------  ----------  ----------
  End of period              $  1,816.8  $  2,269.0  $  1,816.8  $  2,269.0
                             ==========  ==========  ==========  ==========



                                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       Six Months Ended
                             ----------------------  ----------------------
                               October     October     October     October
                              26, 2012    28, 2011    26, 2012    28, 2011
                             ----------  ----------  ----------  ----------

SUMMARY RECONCILIATION OF
 NET INCOME
NET INCOME                   $    109.6  $    165.6       173.4       305.1

Adjustments:
  Amortization of intangible
   assets                          21.5        21.7        42.9        46.0
  Stock-based compensation         65.0        63.0       144.2       121.1
  Acquisition-related
   expense                            -         1.7           -        11.9
  Non-cash interest expense        14.4        11.5        28.7        25.2
  Income tax effect of non-
   GAAP adjustments               (21.5)      (28.0)      (43.8)      (51.5)

                             ----------  ----------  ----------  ----------
NON-GAAP NET INCOME          $    189.0  $    235.5  $    345.4  $    457.8
                             ==========  ==========  ==========  ==========


NET INCOME PER SHARE         $    0.298  $    0.440       0.469       0.781

Adjustments:
  Amortization of intangible
   assets                         0.058       0.058       0.116       0.118
  Stock-based compensation        0.176       0.168       0.390       0.310
  Acquisition-related
   expense                            -       0.004           -       0.030
  Non-cash interest expense       0.039       0.031       0.078       0.064
  Income tax effect of non-
   GAAP adjustments              (0.058)     (0.075)     (0.119)     (0.132)

                             ----------  ----------  ----------  ----------
NON-GAAP NET INCOME PER
 SHARE                       $    0.513  $    0.626  $    0.934  $    1.171
                             ==========  ==========  ==========  ==========



                                NETAPP, INC.
                          SUPPLEMENTAL INFORMATION
                                (In millions)
                                 (Unaudited)

                              Three Months Ended October 26, 2012
                   ---------------------------------------------------------

                   Amortization
                        of                   Acquisition-  Non-cash
                    Intangible   Stock-based    related    Interest
                      Assets    Compensation    Expense    Expense    Total
                   ------------ ------------ ------------ --------- --------


Cost of product
 revenues          $       13.9 $        1.5 $          - $       - $   15.4
Cost of service
 revenues                     -          4.6            -         -      4.6
Sales and marketing
 expenses                   7.6         30.9            -         -     38.5
Research and
 development
 expenses                     -         19.3            -         -     19.3
General and
 administrative
 expenses                     -          8.7            -         -      8.7
Interest expense              -            -            -      14.4     14.4
                   ------------ ------------ ------------ --------- --------
Effect on income
 before income
 taxes             $       21.5 $       65.0 $          - $    14.4 $  100.9
                   ============ ============ ============ ========= ========



                               Six Months Ended October 26, 2012
                   ---------------------------------------------------------

                   Amortization
                        of                   Acquisition-  Non-cash
                    Intangible   Stock-based    related    Interest
                      Assets    Compensation    Expense    Expense    Total
                   ------------ ------------ ------------ --------- --------


Cost of product
 revenues          $       27.9 $        3.3 $          - $       - $   31.2
Cost of service
 revenues                     -         10.2            -         -     10.2
Sales and marketing
 expense                   15.0         69.9            -         -     84.9
Research and
 development
 expense                      -         43.0            -         -     43.0
General and
 administrative
 expense                      -         17.8            -         -     17.8
Interest expense              -            -            -      28.7     28.7
                   ------------ ------------ ------------ --------- --------
Effect on income
 before income
 taxes             $       42.9 $      144.2 $          - $    28.7 $  215.8
                   ============ ============ ============ ========= ========



                              Three Months Ended October 28, 2011
                   ---------------------------------------------------------

                   Amortization
                        of                   Acquisition-  Non-cash
                    Intangible   Stock-based    related    Interest
                      Assets    Compensation    Expense    Expense    Total
                   ------------ ------------ ------------ --------- --------

Cost of product
 revenues          $       14.0 $        1.4 $          - $       - $   15.4
Cost of service
 revenues                     -          4.2            -         -      4.2
Sales and marketing
 expenses                   7.7         30.4            -         -     38.1
Research and
 development
 expenses                     -         18.2            -         -     18.2
General and
 administrative
 expenses                     -          8.8            -         -      8.8
Acquisition-related
 expense                      -            -          1.7         -      1.7
Interest expense              -            -            -      11.5     11.5
                   ------------ ------------ ------------ --------- --------
Effect on income
 before income
 taxes             $       21.7 $       63.0 $        1.7 $    11.5 $   97.9
                   ============ ============ ============ ========= ========


                               Six Months Ended October 28, 2011
                   ---------------------------------------------------------

                   Amortization
                        of                   Acquisition-  Non-cash
                    Intangible   Stock-based    related    Interest
                      Assets    Compensation    Expense    Expense    Total
                   ------------ ------------ ------------ --------- --------

Cost of product
 revenues          $       27.9 $        2.5 $        5.4 $       - $   35.8
Cost of service
 revenues                     -          8.1            -         -      8.1
Sales and marketing
 expense                   18.0         59.0            -         -     77.0
Research and
 development
 expense                    0.1         34.2          2.6         -     36.9
General and
 administrative
 expense                      -         17.3            -         -     17.3
Acquisition-related
 expense                      -            -          3.9         -      3.9
Interest expense              -            -            -      25.2     25.2
                   ------------ ------------ ------------ --------- --------
Effect on income
 before income
 taxes             $       46.0 $      121.1 $       11.9 $    25.2 $  204.2
                   ============ ============ ============ ========= ========



                          NETAPP, INC.
           RECONCILIATION OF NON GAAP GUIDANCE TO GAAP
                 EXPRESSED AS EARNINGS PER SHARE
                       THIRD QUARTER 2013
                           (Unaudited)


                                             Third Quarter
                                                  2013
                                       -------------------------

Non-GAAP Guidance - Net Income Per
 Share                                       $0.53 - $0.58

Adjustments of Specific Items to
  Net Income Per Share for the Third
  Quarter 2013:
  Amortization of intangible assets              (0.06)
  Stock-based compensation expense               (0.21)
  Non-cash interest expense                      (0.04)
  Income tax effect                               0.07
                                       -------------------------
Total Adjustments                                (0.24)

GAAP Guidance - Net Income Per Share         $0.29 - $0.34

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Press Contact:
Ryan Lowry
NetApp
(408) 822-7544
Email Contact

Investor Contact:
Kris Newton
NetApp
(408) 822-3312
Email Contact

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Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams. In his session at 22nd Cloud Expo | DXWorld Expo, Daniel Jones, CTO of EngineerBetter, will answer: How can we improve willpower and decrease technical debt? Is the present bias real? How can we turn it to our advantage? Can you increase a team’s effective IQ? How do DevOps & Product Teams increase empathy, and what impact does empath...
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
"Digital transformation - what we knew about it in the past has been redefined. Automation is going to play such a huge role in that because the culture, the technology, and the business operations are being shifted now," stated Brian Boeggeman, VP of Alliances & Partnerships at Ayehu, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
You know you need the cloud, but you're hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You're looking at private cloud solutions based on hyperconverged infrastructure, but you're concerned with the limits inherent in those technologies. What do you do?
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
"We started a Master of Science in business analytics - that's the hot topic. We serve the business community around San Francisco so we educate the working professionals and this is where they all want to be," explained Judy Lee, Associate Professor and Department Chair at Golden Gate University, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.