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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® 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 in 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® 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® 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™ 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, acquisition-related income and expenses, restructuring and other charges, asset impairments, non-cash interest expense associated with our debt, net losses or gains on investments, and our GAAP tax provision, but includes a non-GAAP tax provision based upon our projected annual non-GAAP effective tax rate for the first three quarters of the fiscal year and an actual non-GAAP tax provision for the fourth quarter of the fiscal year. Non-GAAP earnings per share is calculated using the diluted number of shares for all periods presented. A detailed reconciliation of our non-GAAP to GAAP results can be found at http://investors.netapp.com.

NetApp Usage of Non-GAAP Financials
The Company refers to the non-GAAP financial measures 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 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)

                                           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


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@CloudExpo Stories
"Storpool does only block-level storage so we do one thing extremely well. The growth in data is what drives the move to software-defined technologies in general and software-defined storage," explained Boyan Ivanov, CEO and co-founder at StorPool, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Sometimes I write a blog just to formulate and organize a point of view, and I think it’s time that I pull together the bounty of excellent information about Machine Learning. This is a topic with which business leaders must become comfortable, especially tomorrow’s business leaders (tip for my next semester University of San Francisco business students!). Machine learning is a key capability that will help organizations drive optimization and monetization opportunities, and there have been some...
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...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
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.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
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...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
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...