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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
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...