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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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You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at 18th Cloud Expo, Charles Kendrick, CTO & Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and devel...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...