SOURCE: NetApp, Inc.
November 17, 2010 15:31 ET
NetApp Announces Results for Second Quarter Fiscal Year 2011
Company Reports Record Q2 FY'11 Revenues of $1.207 Billion, Up 33% Year Over Year
SUNNYVALE, CA--(Marketwire - November 17, 2010) - NetApp (NASDAQ: NTAP) today reported results
for the second quarter of fiscal year 2011, which ended October 29, 2010.
Revenues for the second fiscal quarter of 2011 totaled $1.207 billion
compared to revenues of $910 million for the same period a year ago, an
increase of 33% year over year.
For the second quarter of fiscal year 2011, GAAP net income was $165
million or $0.42 per share(1) compared to GAAP net income of $96 million, or
$0.27 per share for the same period a year ago. Non-GAAP net income for the
second quarter of fiscal year 2011 was $203 million, or $0.52 per share(2),
compared to non-GAAP net income of $130 million, or $0.37 per share for the
same period a year ago.
Revenues for the first six months of fiscal year 2011 totaled $2.345
billion compared to revenues of $1.748 billion for the first six months of
the prior fiscal year, an increase of 34% year over year.
GAAP net income for the first six months of fiscal year 2011 totaled $306
million, or $0.80 per share, compared to GAAP net income of $147 million,
or $0.43 per share for the first six months of the prior fiscal year.
Non-GAAP net income for the first six months of fiscal year 2011 totaled
$385 million, or $1.01 per share, compared to non-GAAP net income of $206
million, or $0.60 per share for the first six months of the prior fiscal
year.
"NetApp produced 49% year over year growth in product revenue and our
highest non-GAAP operating margin in over a decade, while simultaneously
investing aggressively in our future," said Tom Georgens, president and CEO
of NetApp. "Last week, the NetApp team delivered the most comprehensive
product launch in our history. By offering customers a more flexible and
efficient alternative to traditional storage, NetApp further strengthened
our leadership position as the platform of choice for the next generation
of IT infrastructure."
Outlook
- NetApp estimates revenue for the third quarter of fiscal year 2011 to
be in the range of $1.240 billion to $1.290 billion, which equates to
approximately 3% to 7% sequential revenue growth and approximately 23% to
28% year over year revenue growth.
- NetApp estimates that third quarter fiscal year 2011 GAAP earnings per
share will be approximately $0.39 to $0.41 per share. NetApp estimates that
the third quarter fiscal year 2011 non-GAAP earnings per share will be
approximately $0.48 to $0.50 per share.
- NetApp estimates share count for the third quarter of fiscal year 2011
will increase to approximately 408 million shares, including an estimated
16.9 million shares from the Company's outstanding convertible notes(3) and
9.9 million shares from outstanding warrants. Share count does not include
the Company's outstanding note hedges that are expected to offset 80% of
the dilution from the convertible notes at maturity or conversion, which
would equate to an offset of approximately 13.5 million shares if the
conversion or maturity occurred in the third quarter.
Business Highlights
In the second quarter of fiscal year 2011, NetApp introduced new solutions
and expanded support and integration with key partners such as VMware to
help customers accelerate their move to a more integrated, efficient, and
flexible shared IT infrastructure. In addition, NetApp achieved several
milestones and was honored as a best place to work and one of the most
trusted and strategic IT vendors in the industry. Key business highlights
included the following:
NetApp and Partners Deliver Flexible and Efficient IT
- NetApp and VMware® improve IT efficiency. NetApp made several
announcements with VMware to enable customers to achieve greater efficiency
in their virtual environments. NetApp integrated its unified storage
technologies with VMware® View™ to help customers enhance storage
efficiency and virtual desktop scalability, as well as improve performance
levels. NetApp also announced support for VMware vCloud™ Director
software to improve IT flexibility and efficiency and help enterprise
customers and service providers to easily and cost-effectively evolve to a
cloud service model. In addition, NetApp and VMware unveiled a new solution
for midsize enterprises to consolidate and virtualize their Windows®
environments to deliver enterprise-class IT as a service.
- Fujitsu and NetApp help customers gain greater IT value and
efficiency. Fujitsu and NetApp extended their strong, long-standing
global partnership to offer a shared portfolio of products to meet the
integrated storage needs of their customers. Fujitsu will expand its resale
of NetApp® unified storage systems to more markets worldwide. In
addition, NetApp will resell the Fujitsu ETERNUS CS800 S2 Data Protection
Appliance in 22 countries across EMEA.
- NetApp strengthens integration with Symantec to boost customers' IT
efficiency. NetApp integrated its unified storage systems with the
Symantec™ Thin Reclamation API to help SAN customers automatically
reclaim storage space and improve overall storage efficiency. Customers can
improve planning and reduce their overall IT footprint and management
costs.
- NetApp helps EMC and HP customers achieve greater efficiency.
NetApp introduced its Zero Investment Promise (ZIP) for Database Promotion
to assist EMC and HP customers in achieving greater storage efficiencies in
their database environments. The promotion enables EMC and HP customers to
reduce storage requirements, improve utilization, and decrease operating
costs by engaging in a 90-day, risk-free, zero-investment trial of NetApp
V-Series for their database storage infrastructures.
Milestones and Awards
- NetApp customers deploy thousands of systems with Data ONTAP®
8. To help transition to a shared IT infrastructure, customers
accelerated their adoption of NetApp Data ONTAP 8 by deploying thousands of
systems to build flexible, scalable, and efficient shared storage
environments that are designed to address today's business challenges and
the future requirements of their businesses.
- NetApp ranked #1 hardware vendor and #2 overall IT vendor.
NetApp was ranked as the #1 hardware vendor and #2 (tied with Cisco)
overall IT vendor in the 2010 CIO Insight Vendor Value Ratings survey.
- NetApp positioned in Leaders quadrant. Gartner, Inc. positioned
NetApp in the Leaders quadrant for Storage Resource Management and SAN
Management Software(4). Gartner asserted that vendors in the Leaders
quadrant "have the highest combined measures of Ability to Execute and
Completeness of Vision."
- NetApp ranked #1 best place to work. NetApp was ranked #1 on the
Triangle Business Journal's annual "Best Places to Work" in Research
Triangle Park (RTP) list for 2010. NetApp received this honor for the Giant
Businesses category, which includes companies of 1,000 employees or more;
it marks the sixth time that NetApp has made this distinguished list and
the second time it has been ranked #1.
Webcast and Conference Call Information
The NetApp second quarter fiscal year 2011 results conference call will be
broadcast live on the Internet at http://investors.netapp.com on Wednesday,
November 17, 2010, at 2:00 p.m. Pacific Time. This press release and any
other information related to the call will also be posted on the Web site
at that location. An audio replay Webcast will also be available after 4:00
p.m. Pacific Time on our Web site.
NetApp uses a hybrid format for disclosing key financial information
associated with our quarterly results. Concurrent with the press release,
NetApp will post and distribute a separate document with financial
commentary and statistics. These prepared remarks will be available prior
to the conference call in order to provide the investment community with
additional time to analyze our results. This commentary will not be read
during the earnings call.
About NetApp
NetApp creates innovative storage and data management solutions that
deliver outstanding cost efficiency and accelerate business breakthroughs.
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
forecasted operating results, share count, and metrics for the third
quarter of fiscal year 2011, expectations regarding current and new
partnerships and strategic alliances, and the benefits that we expect our
customers to realize from using our products and from our strategic
alliances and partnerships. These forward-looking statements involve risks
and uncertainties, and actual results could vary. Important factors that
could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, customer demand
for our products and services including our recently announced new product
introductions; our ability to increase revenue and manage our operating
costs; increased competition risks associated with the anticipated growth
in networked storage market; general economic and market conditions; our
ability to deliver new product architectures and enterprise service
offerings; our ability to design products and services that compete
effectively from a price and performance perspective; our reliance on a
limited number of suppliers; our ability to accurately forecast demand for
our products; and other important factors as described in NetApp reports
and documents filed from time to time with the Securities and Exchange
Commission (SEC), including the factors described under the sections
captioned "Risk Factors" in our most recently submitted 10-K and 10-Q. 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, and Data ONTAP are trademarks
in the United States and other countries. All other trademarks 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 expenses, acquisition related income and expenses,
restructuring and other charges, asset impairments, non-cash interest
expense associated with our convertible debt, net losses or gains on
investments, and our GAAP tax provision, but includes a non-GAAP tax
provision based upon our projected annual non-GAAP effective tax rate for
the first three quarters of the fiscal year and an actual non-GAAP tax
provision for the fourth quarter of the fiscal year. Non-GAAP earnings per
share is calculated using the diluted number of shares for all periods
presented.
(3) 80% hedged on maturity or conversion of the convertible notes.
(4) Gartner, Inc. Magic Quadrant for Storage Resource Management and SAN
Management Software, Valdis Filks, Robert E. Passmore, September 21, 2010.
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 expenses, acquisition related income and expenses,
restructuring and other charges, asset impairments, non-cash interest
expense associated with our convertible debt, net losses or gains on
investments, and our GAAP tax provision, but includes a non-GAAP tax
provision based upon our projected annual non-GAAP effective tax rate for
the first three quarters of the fiscal year and an actual non-GAAP tax
provision for the fourth quarter of the fiscal year. We have excluded these
items in order to enhance investors' understanding of our ongoing
operations. The use of these non-GAAP financial measures has material
limitations because they should not be used to evaluate our company without
reference to their corresponding GAAP financial measures. As such, we
compensate for these material limitations by using these non-GAAP financial
measures in conjunction with GAAP financial measures.
These non-GAAP financial measures are used to: (1) measure company
performance against historical results, (2) facilitate comparisons to our
competitors' operating results, and (3) allow greater transparency with
respect to information used by management in financial and operational
decision making. In addition, these non-GAAP financial measures are used to
measure company performance for the purposes of determining employee
incentive plan compensation. We have historically reported similar non-GAAP
financial measures to our investors and believe that the inclusion of
comparative numbers provides consistency in our financial reporting at this
time.
NETAPP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
October 29, April 30,
2010 2010
----------- -----------
ASSETS
Current assets:
Cash, cash equivalents and investments $ 4,381.5 $ 3,724.0
Accounts receivable, net 446.6 471.5
Inventories 84.7 112.9
Other current assets 218.3 228.7
----------- -----------
Total current assets 5,131.1 4,537.1
Property and equipment, net 845.3 804.4
Goodwill and other intangible assets, net 775.8 706.1
Long-term investments and restricted cash 69.8 72.8
Other non-current assets 415.8 374.0
----------- -----------
$ 7,237.8 $ 6,494.4
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 175.9 $ 184.6
Accrued compensation and other current
liabilities 523.0 591.3
Short-term deferred revenue 1,135.6 1,135.1
----------- -----------
Total current liabilities 1,834.5 1,911.0
----------- -----------
Long-term debt and other obligations 1,329.5 1,273.4
Long-term deferred revenue 866.4 779.5
----------- -----------
4,030.4 3,963.9
----------- -----------
Stockholders' equity 3,207.4 2,530.5
----------- -----------
$ 7,237.8 $ 6,494.4
=========== ===========
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except net income per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
------------------------ ------------------------
October 29, October 30, October 29, October 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Revenues:
Product $ 780.0 $ 525.1 $ 1,500.8 $ 1,003.4
Software entitlements
and maintenance 177.9 169.8 352.6 335.1
Service 249.5 215.1 491.8 409.5
----------- ----------- ----------- -----------
Net revenues 1,207.4 910.0 2,345.2 1,748.0
----------- ----------- ----------- -----------
Cost of revenues:
Cost of product 296.1 199.1 603.8 411.7
Cost of software
entitlements and
maintenance 3.5 3.1 6.9 6.2
Cost of service 106.7 101.1 209.0 200.9
----------- ----------- ----------- -----------
Total cost of
revenues 406.3 303.3 819.7 618.8
----------- ----------- ----------- -----------
Gross profit 801.1 606.7 1,525.5 1,129.2
----------- ----------- ----------- -----------
Operating expenses:
Sales and marketing 382.8 300.8 737.0 602.3
Research and
development 156.6 132.4 306.1 262.7
General and
administrative 64.2 56.9 120.4 116.4
Restructuring and
other charges 0.1 1.2 0.1 2.7
Acquisition related
(income) expense, net - - 0.3 (41.1)
----------- ----------- ----------- -----------
Total operating
expenses 603.7 491.3 1,163.9 943.0
----------- ----------- ----------- -----------
Income from operations 197.4 115.4 361.6 186.2
Other income
(expenses), net
Interest income 9.5 7.0 19.3 15.6
Interest expense (18.6) (17.9) (37.2) (37.1)
Other income
(expenses), net (1.4) 1.5 0.8 0.4
----------- ----------- ----------- -----------
Total other
expenses, net (10.5) (9.4) (17.1) (21.1)
----------- ----------- ----------- -----------
Income before income
taxes 186.9 106.0 344.5 165.1
Provision for income
taxes 22.3 10.3 38.1 17.8
----------- ----------- ----------- -----------
Net income $ 164.6 $ 95.7 $ 306.4 $ 147.3
=========== =========== =========== ===========
Net income per share:
Basic $ 0.46 $ 0.28 $ 0.86 $ 0.44
=========== =========== =========== ===========
Diluted $ 0.42 $ 0.27 $ 0.80 $ 0.43
=========== =========== =========== ===========
Shares used in net
income per share
calculations:
Basic 359.1 336.7 355.8 335.6
=========== =========== =========== ===========
Diluted 391.7 349.8 383.0 344.3
=========== =========== =========== ===========
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In millions)
(Unaudited)
Three Months Ended Six Months Ended
---------------------- ----------------------
October 29, October 30, October 29, October 30,
2010 2009 2010 2009
---------- ---------- ---------- ----------
Cash Flows from Operating
Activities:
Net income $ 164.6 $ 95.7 $ 306.4 $ 147.3
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation and
amortization 41.6 42.2 82.3 85.2
Stock-based compensation 37.7 33.2 82.0 85.4
Accretion of discount and
issue costs on notes 13.0 12.2 25.9 25.3
Unrealized losses on
derivative activities (4.1) - 6.7 -
Tax benefit from
stock-based compensation 52.9 (4.6) 40.9 14.4
Excess tax benefit from
stock-based compensation (32.7) (1.4) (32.7) (1.4)
Other, net (28.9) (2.1) (17.8) (4.1)
Changes in assets and
liabilities:
Accounts receivable (72.7) 14.5 27.3 131.7
Inventories 5.7 0.7 28.2 0.3
Accounts payable 15.8 (2.4) (18.6) (16.9)
Accrued compensation and
other current
liabilities 125.5 90.8 (96.1) (140.1)
Deferred revenue 48.4 (4.4) 81.6 (14.2)
Changes in other
operating assets and
liabilities, net (2.1) (7.1) 25.9 (7.4)
---------- ---------- ---------- ----------
Net cash provided
by operating
activities 364.7 267.3 542.0 305.5
---------- ---------- ---------- ----------
Cash Flows from Investing
Activities:
Purchases and redemptions
of investments, net (300.9) (336.0) (594.8) (102.4)
Purchases of property and
equipment (43.3) (22.8) (83.5) (47.5)
Acquisition of business,
net of cash acquired - - (74.9) -
Other investing
activities, net (0.1) 4.1 - 3.6
---------- ---------- ---------- ----------
Net cash used in
investing
activities (344.3) (354.7) (753.2) (146.3)
---------- ---------- ---------- ----------
Cash Flows from Financing
Activities:
Issuance of common stock 96.2 26.8 236.1 60.1
Excess tax benefit from
stock-based compensation 32.7 1.4 32.7 1.4
Payment of financing
arrangements (2.0) - (2.0) -
---------- ---------- ---------- ----------
Net cash provided
by financing
activities 126.9 28.2 266.8 61.5
---------- ---------- ---------- ----------
Effect of Exchange Rate
Changes on Cash and Cash
Equivalents 11.8 3.6 10.5 13.9
Net Increase (Decrease) in
Cash and Cash Equivalents 159.1 (55.6) 66.1 234.6
Cash and Cash Equivalents:
Beginning of period 1,612.0 1,784.4 1,705.0 1,494.2
---------- ---------- ---------- ----------
End of period $ 1,771.1 $ 1,728.8 $ 1,771.1 $ 1,728.8
========== ========== ========== ==========
NETAPP, INC.
RECONCILIATION OF NON-GAAP AND GAAP
IN THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except net income per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
---------------------- ----------------------
October 29, October 30, October 29, October 30,
2010 2009 2010 2009
---------- ---------- ---------- ----------
SUMMARY RECONCILIATION OF
NET INCOME
NET INCOME $ 164.6 $ 95.7 $ 306.4 $ 147.3
Adjustments:
Amortization of intangible
assets 4.4 5.1 9.9 10.7
Stock-based compensation
expenses 37.7 33.2 82.0 85.4
Restructuring and other
charges 0.1 1.2 0.1 2.7
Acquisition related
(income) expense, net - - 0.3 (41.1)
Non-cash interest expense 13.0 12.2 25.9 25.3
Gain on investments - (2.8) (2.5) (2.8)
Income tax effect of
non-GAAP adjustments (17.1) (14.5) (36.8) (21.4)
---------- ---------- ---------- ----------
NON-GAAP NET INCOME $ 202.7 $ 130.1 $ 385.3 $ 206.1
========== ========== ========== ==========
NET INCOME PER SHARE $ 0.420 $ 0.274 $ 0.800 $ 0.428
Adjustments:
Amortization of intangible
assets 0.011 0.015 0.026 0.031
Stock-based compensation
expenses 0.096 0.095 0.214 0.248
Restructuring and other
charges - 0.003 - 0.008
Acquisition related
(income) expense, net - - 0.001 (0.119)
Non-cash interest expense 0.033 0.035 0.068 0.073
Gain on investments - (0.008) (0.007) (0.008)
Income tax effect of
non-GAAP adjustments (0.043) (0.042) (0.096) (0.062)
NON-GAAP NET INCOME PER ---------- ---------- ---------- ----------
SHARE $ 0.517 $ 0.372 $ 1.006 $ 0.599
========== ========== ========== ==========
NETAPP, INC.
SUPPLEMENTAL INFORMATION
(In millions)
(Unaudited)
Three Months Ended October 29, 2010
---------------------------------------------------
Acquisition
Amortization related
of Stock-based Restructuring (income)
Intangible Compensation and Other expense,
Assets Expenses Charges net
------------ ------------ ------------- -----------
Cost of product
revenues $ 3.3 $ 0.8 $ - $ -
Cost of service
revenues - 3.1 - -
Sales and marketing
expense 1.1 17.3 - -
Research and
development expense - 9.2 - -
General and
administrative expense - 7.3 - -
Restructuring and other
charges - - 0.1 -
Interest expense - - - -
------------ ------------ ------------- -----------
Effect on income before
income taxes $ 4.4 $ 37.7 $ 0.1 $ -
Three Months Ended October 29, 2010
-----------------------------------
Non-Cash
Interest Gain on
Expense Investments Total
----------- ----------- -----------
Cost of product
revenues $ - $ - $ 4.1
Cost of service
revenues - - 3.1
Sales and marketing
expense - - 18.4
Research and
development expense - - 9.2
General and
administrative expense - - 7.3
Restructuring and other
charges - - 0.1
Interest expense 13.0 - 13.0
----------- ----------- -----------
Effect on income before
income taxes $ 13.0 $ - $ 55.2
Six Months Ended October 29, 2010
---------------------------------------------------
Acquisition
Amortization related
of Stock-based Restructuring (income)
Intangible Compensation and Other expense,
Assets Expenses Charges net
------------ ------------ ------------- -----------
Cost of product
revenues $ 7.7 $ 1.7 $ - $ -
Cost of service
revenues - 7.0 - -
Sales and marketing
expense 2.2 37.9 - -
Research and
development expense - 20.3 - -
General and
administrative expense - 15.1 - -
Restructuring and other
charges - - 0.1 -
Acquisition related
(income) expense, net - - - 0.3
Interest expense - - - -
Other income
(expenses), net - - - -
------------ ------------ ------------- -----------
Effect on income before
income taxes $ 9.9 $ 82.0 $ 0.1 $ 0.3
Six Months Ended October 29, 2010
-----------------------------------
Non-Cash
Interest Gain on
Expense Investments Total
----------- ---------- ----------
Cost of product
revenues $ - $ - $ 9.4
Cost of service
revenues - - 7.0
Sales and marketing
expense - - 40.1
Research and
development expense - - 20.3
General and
administrative expense - - 15.1
Restructuring and other
charges - - 0.1
Acquisition related
(income) expense, net - - 0.3
Interest expense 25.9 - 25.9
Other income
(expenses), net - (2.5) (2.5)
----------- ---------- ----------
Effect on income before
income taxes $ 25.9 $ (2.5) $ 115.7
Three Months Ended October 30, 2009
---------------------------------------------------
Acquisition
Amortization related
of Stock-based Restructuring (income)
Intangible Compensation and Other expense,
Assets Expenses Charges net
------------ ------------ ------------- -----------
Cost of product
revenues $ 4.3 $ 0.5 $ - $ -
Cost of service
revenues - 2.9 - -
Sales and marketing
expense 0.8 15.7 - -
Research and
development expense - 7.9 - -
General and
administrative expense - 6.2 - -
Restructuring and other
charges - - 1.2 -
Interest expense - - - -
Other income
(expenses), net - - - -
------------ ------------ ------------- -----------
Effect on income before
income taxes $ 5.1 $ 33.2 $ 1.2 $ -
Three Months Ended October 30, 2009
-----------------------------------
Non-Cash
Interest Gain on
Expense Investments Total
----------- ---------- ----------
Cost of product
revenues $ - $ - $ 4.8
Cost of service
revenues - - 2.9
Sales and marketing
expense - - 16.5
Research and
development expense - - 7.9
General and
administrative expense - - 6.2
Restructuring and other
charges - - 1.2
Interest expense 12.2 - 12.2
Other income
(expenses), net - (2.8) (2.8)
----------- ---------- ----------
Effect on income before
income taxes $ 12.2 $ (2.8) $ 48.9
Six Months Ended October 30, 2009
---------------------------------------------------
Acquisition
Amortization related
of Stock-based Restructuring (income)
Intangible Compensation and Other expense,
Assets Expenses Charges net
------------ ------------ ------------- ----------
Cost of product
revenues $ 9.0 $ 1.7 $ - $ -
Cost of service
revenues - 7.4 - -
Sales and marketing
expense 1.7 39.7 - -
Research and
development expense - 20.6 - -
General and
administrative expense - 16.0 - -
Restructuring and other
charges - - 2.7 -
Acquisition related
(income) expense, net - - - (41.1)
Interest expense - - - -
Other income
(expenses), net - - - -
------------ ------------ ------------- ----------
Effect on income before
income taxes $ 10.7 $ 85.4 $ 2.7 $ (41.1)
Six Months Ended October 30, 2009
-----------------------------------
Non-Cash
Interest Gain on
Expense Investments Total
----------- ---------- ----------
Cost of product
revenues $ - $ - $ 10.7
Cost of service
revenues - - 7.4
Sales and marketing
expense - - 41.4
Research and
development expense - - 20.6
General and
administrative expense - - 16.0
Restructuring and other
charges - - 2.7
Acquisition related
(income) expense, net - - (41.1)
Interest expense 25.3 - 25.3
Other income
(expenses), net - (2.8) (2.8)
----------- ---------- ----------
Effect on income before
income taxes $ 25.3 $ (2.8) $ 80.2
NETAPP, INC.
RECONCILIATION OF NON GAAP GUIDANCE TO GAAP
EXPRESSED AS EARNINGS PER SHARE
THIRD QUARTER 2011
(Unaudited)
Third Quarter
2011
---------------
Non-GAAP Guidance $0.48 - $0.50
Adjustments of Specific Items to
Net Income Per Share for the Third
Quarter 2011:
Stock based compensation expense (0.09)
Amortization of intangible assets (0.01)
Non cash interest expense (0.03)
Income tax effect 0.04
---------------
Total Adjustments (0.09)
GAAP Guidance -Net Income Per Share $0.39 - $0.41