NetApp: Fiscal 1Q15 Financial Results

NetApp, Inc. reported financial results for the first quarter of fiscal year 2015 ended July 25, 2014.

First Quarter Financial Results
Net revenues for the first quarter of fiscal year 2015 were $1.49 billion. GAAP net income for the first quarter of fiscal year 2015 was $88 million, or $0.27 per share, compared to GAAP net income of $82 million, or $0.23 per share, for the comparable period of the prior year. Non-GAAP net income for the first quarter of fiscal year 2015 was $198 million, or $0.60 per share,2 compared to non-GAAP net income of $192 million, or $0.53 per share, for the comparable period of the prior year.

Cash, Cash Equivalents and Investments
NetApp ended the first quarter of fiscal year 2015 with $5.56 billion of total cash, cash equivalents and investments and during the quarter generated $216 million in cash from operations. The company returned $172 million to shareholders during the quarter through share repurchases and a cash dividend. The next dividend in the amount of $0.165 per share will be paid on October 22, 2014 to shareholders of record as of the close of business on October 10, 2014.

“More large enterprises are relying on NetApp to help them bridge the on-premises architectures of today with the requirement to leverage multiple cloud services in the future,” said Tom Georgens, chairman and CEO. “Our best-in-class portfolio is driving momentum, enabling us to invest in continued innovation while delivering shareholder value.“

Financial guidance for the second quarter of fiscal year 2015:

• Net revenues are expected to be in the range of $1.49 billion to $1.59 billion
• GAAP earnings per share is expected to be in the range of $0.45 to $0.50 per share
• Non-GAAP earnings per share is expected to be in the range of $0.66 to $0.71 per share

Business Highlights

Delivers New Products:

• FAS8080 EX. The unified array is purpose-built for demanding business-critical applications with quality-of-service capabilities to enable predictable performance.
• FAS2500. It delivers optimal price/performance at an entry-level price point, while simplifying storage management operations.
• All-Flash FAS Products. New products combine the performance and low latency of flash with the enterprise reliability and extensive data management of Data ONTAP software.
• Updated OnCommand Portfolio. OnCommand enables customers to better control clustered Data ONTAP and multivendor storage environments, driving down storage costs, improving service delivery through open integration, and maximizing investment by providing flexible reporting and cost analysis.

Strengthens Partnerships:

• Delivered NetApp Private Storage (NPS) for Azure. Building on its portfolio of Microsoft cloud solutions, NetApp introduced NPS for Azure, enabling customers to extend their IT infrastructure to Azure to create a seamless, secure hybrid cloud environment.
• Deepened Equinix Hybrid Cloud Partnership. The Equinix Cloud Exchange can dynamically connect NetApp Private Storage customers to multiple public clouds so that they can explore multi-cloud deployments to handle large, complex workflows more efficiently.
• Achieved $3 billion in FlexPod Joint Sales for NetApp and Cisco. The integrated infrastructure solution has generated $3 billion in joint sales since its launch in 2010.

Provides Cloud Service Architecture:
State Government Agency Implements NetApp Private Cloud Architecture. The agency is a model for cloud service architectures deploying clustered Data ONTAP OS, OnCommand System Manager, and FAS hybrid storage systems as part of its multitenant private cloud.