Netezza: Fiscal 4Q07 Financial Results

Netezza Corporation announced
its financial results for the fourth quarter and fiscal year ended
January 31, 2008.

Jit Saxena, Netezza’s Chairman and Chief Executive
Officer, stated: "We are very pleased with our fourth quarter
and our fiscal year 2008 results. Throughout the year we saw accelerating
momentum in our business both from our current customers and with
new customers. This momentum allows us to continue to invest in our
product development and distribution channels to better address our
customers’ needs and the market opportunity in front of us."

Fourth Quarter of Fiscal Year 2008
Total revenue for the fourth quarter of fiscal 2008
increased 48% to $39.5 million compared with $26.7 million for the
same period one year ago. GAAP net income attributable to common stockholders
for the fourth quarter of fiscal 2008 was $3.4 million compared with
a GAAP net loss attributable to common stockholders of $1.9 million
for the same period one year ago. Non-GAAP net income attributable
to common stockholders for the fourth quarter of fiscal 2008 was $4.6
million compared with a non-GAAP net loss attributable to common stockholders
of $0.1 million for the same period one year ago. GAAP diluted net
income per share for the fourth quarter of fiscal 2008 was $0.05 compared
with a GAAP diluted net loss per share of $0.26 for the same period
one year ago. Non-GAAP diluted net income per share for the fourth
quarter of fiscal 2008 was $0.07 compared with a non-GAAP diluted
net loss per share of $0.01 for the same period one year ago.

Fiscal Year 2008
Total revenue for fiscal year 2008 increased 59%
to $126.7 million compared with $79.6 million for fiscal year 2007.
GAAP net loss attributable to common stockholders for fiscal year
2008 was $0.9 million compared with a GAAP net loss attributable to
common stockholders of $13.9 million for fiscal year 2007. Non-GAAP
net income attributable to common stockholders for fiscal year 2008
was $6.3 million compared with a non-GAAP net loss attributable to
common stockholders of $7.1 million for fiscal year 2007. GAAP diluted
net loss per share for fiscal year 2008 was $0.03 compared with a
GAAP diluted net loss per share of $1.90 for fiscal year 2007. Non-GAAP
diluted net income per share for fiscal year 2008 was $0.18 compared
with a non-GAAP diluted net loss per share of $0.97 for fiscal year
2007.

Non-GAAP net income (loss) attributable to common
stockholders, non-GAAP diluted net income per share and non-GAAP operating
income exclude non-cash stock based compensation and, where applicable,
accretion of preferred stock dividends. A reconciliation of GAAP to
non-GAAP results has been provided in the financial statements included
in this press release. An explanation of these measures is also included
below under the heading "Use of Non-GAAP Financial Measures."

At January 31, 2008, total cash and marketable securities
were $137.1 million, compared with $5.0 million at January 31, 2007.
Netezza’s initial public offering in July 2007 raised proceeds of
$113.0 million, net of expenses. The company had no outstanding debt
at January 31, 2008, compared with $6.5 million at January 31, 2007.

Financial Guidance
"We are extremely pleased with our fourth
quarter and fiscal year 2008 financial results, which demonstrated
continued momentum across all dimensions of our business," said
Patrick Scannell, Senior Vice President and Chief Financial Officer
of Netezza. "For fiscal year 2008, we recorded non-GAAP operating
income of 4% and GAAP operating income was approximately break-even.
Based upon our traction in the marketplace, we are raising our fiscal
year 2009 revenue guidance from $160 million to $165 – $168 million.
As we continue to accelerate top line revenue growth, while aggressively
investing in all disciplines across our business to support this growth,
for fiscal year 2009, we are targeting non-GAAP operating income of
7-9% and GAAP operating income of 1-2%."

Netezza Corporation