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NetApp Announces Results for Second Quarter Fiscal Year 2013

Reports Q2 FY'13 Revenues of $1.541 Billion; Non-GAAP Earnings per Share of $0.51 -- Company Increases Stock Repurchase Authorization

SUNNYVALE, CA -- (Marketwire) -- 11/14/12 -- NetApp (NASDAQ: NTAP) today reported results for the second quarter of fiscal year 2013, which ended October 26, 2012. Revenues for the second quarter of fiscal year 2013 totaled $1.541 billion and were in line with prior guidance. Revenues for the same period a year ago totaled $1.507 billion.

For the second quarter of fiscal year 2013, GAAP net income was $110 million, or $0.30 per share,(1) compared to GAAP net income of $166 million, or $0.44 per share for the same period a year ago. Non-GAAP net income for the second quarter of fiscal year 2013 was $189 million, or $0.51 per share,(2) compared to non-GAAP net income of $236 million, or $0.63 per share for the same period a year ago.

Revenues for the first six months of fiscal year 2013 totaled $2.986 billion compared to revenues of $2.965 billion for the first six months of the prior fiscal year. GAAP net income for the first six months of fiscal year 2013 totaled $173 million, or $0.47 per share, compared to GAAP net income of $305 million, or $0.78 per share for the first six months of the prior fiscal year. Non-GAAP net income for the first six months of fiscal year 2013 totaled $345 million, or $0.93 per share, compared to non-GAAP net income of $458 million, or $1.17 per share for the first six months of the prior fiscal year.

"NetApp produced healthy financial results in the second quarter with revenue roughly at the midpoint of and EPS above our guidance range, despite a difficult environment. We saw a strong uptake of NetApp® Data ONTAP® 8 and clustered Data ONTAP, as customers are looking to build agile data infrastructure environments with intelligent data management, nearly unlimited scalability, and nondisruptive operations," said Tom Georgens, president and CEO. "We also saw momentum in our partnering strategy with continued FlexPod® growth and a record high revenue contribution from Arrow and Avnet. Our focus on delivering best-of-breed storage solutions and the leverage we gain through go-to-market and channel partners will enable NetApp to grow our business and gain share."

NetApp also announces it will continue its share repurchase program with an additional $1.5 billion authorized. Under this program, NetApp can purchase shares of its outstanding common stock through open market and in privately negotiated transactions at prices deemed appropriate by management. The timing and amount of repurchase transactions under the program will depend on market conditions, corporate considerations, and regulatory requirements. The purchases will be funded from available working capital.

Outlook

NetApp's outlook for the third 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 third quarter of fiscal year 2013 to be in the range of $1.575 billion to $1.675 billion.
  • NetApp estimates GAAP earnings per share for the third quarter of fiscal year 2013 to be approximately $0.29 to $0.34 per share. NetApp estimates non-GAAP earnings per share for the third quarter of fiscal year 2013 to be approximately $0.53 to $0.58 per share.
  • NetApp estimates that the share count for the third quarter of fiscal year 2013 will decrease to approximately 365 million shares.

Business Highlights
NetApp is built on a culture of innovation that aims to provide customers with the best experience possible. This comes not only from NetApp's direct relationship with customers, but also by delivering compelling technology solutions and forging best-in-class partnerships.

In its second quarter of fiscal year 2013, NetApp's culture of innovation was on display across every aspect of its business. NetApp continued to strengthen and extend its best-of-breed partner ecosystem by announcing new joint solutions and key integrations with industry leaders such as Cisco, Microsoft, VMware, Oracle, and Citrix that will help customers of all sizes accelerate their businesses. A foundational component to several of the new joint offerings is NetApp's Data ONTAP, the world's #1 storage operating system.

Highlights include:

NetApp Announces Definitive Agreement to Acquire CacheIQ, Inc.

  • NetApp has entered into a definitive agreement to acquire CacheIQ, Inc., a privately held storage solutions company based in Austin, Texas. The acquisition will provide NetApp with intellectual property that extends its capabilities to support nondisruptive operations for enterprise data center environments. NetApp will integrate this intellectual property into its product offerings over time. Financial terms of the acquisition are not being disclosed at this time.

Best-in-Class Partner Integration Fuels Innovation for Customers

  • NetApp and Cisco expand data center infrastructure solutions for midsized businesses to large enterprises. The FlexPod data center platform now features support and validation for VMware vSphere on NetApp clustered Data ONTAP to help organizations drive growth by adding nodes to their storage cluster creating large storage pools that span storage devices and can scale almost infinitely. The two companies also introduced ExpressPod, a prepackaged and tested solution for growing small and medium-sized organizations that require increased IT efficiency and simplicity. Celebrating its two-year anniversary, more than 1,500 organizations in 35 countries are accelerating their transition to the cloud with FlexPod. Additionally, more than 660 certified FlexPod Partners around the world are helping these customers deploy their infrastructures more quickly and easily.
  • NetApp and Microsoft technology collaboration drives public, private, and hybrid cloud migration. NetApp announced support for Windows Server 2012 with storage solutions for server and desktop virtualization, storage and availability, Web and application platform development, and private cloud deployment. For organizations of any size and in any industry, this close collaboration simplifies and accelerates how storage is pooled, provisioned, accessed, and managed in Windows environments.
  • NetApp and VMware team up to accelerate customers' transition to an agile data infrastructure. NetApp and VMware continue to build on their nearly 10 year partnership by unveiling integration between VMware vSphere 5.1 and NetApp clustered Data ONTAP. The integration will also enable customers to securely manage and deploy infinite storage pools and to deliver nondisruptive migration of data among hundreds of virtual machines at a time. Customers will be able to achieve continuous data access and uninterrupted business operations as their infrastructures grow and scale in capacity and performance.
  • NetApp and Oracle integration helps customers reduce cost and complexity of managing business-critical applications. NetApp achieved Oracle Validated Integration of the NetApp Storage System Plug-In version 1.0 with Oracle Enterprise Manager 12c, extending the application-to-disk coverage of Oracle Enterprise Manager environments that include NetApp managed storage. As a result, customers will benefit from improved risk management and smoother upgrade capabilities, leading to lower total cost of ownership and greater overall satisfaction.
  • NetApp and Citrix collaborate to simplify cloud storage. NetApp and Citrix announced an extension of their current collaboration aimed at accelerating the adoption of enterprise cloud deployments. The two companies will provide a fully integrated cloud orchestration and storage solution that will address storage automation, resource allocation, and virtual machine backup and recovery. The move greatly simplifies cloud storage deployment for customers and will result in faster transitions to private and hybrid clouds.

NetApp Enhances Flash Portfolio and Ecosystem

  • NetApp Flash Accel helps customers enhance application and server performance. NetApp introduced NetApp Flash Accel to speed customer application performance by turning server-side Flash into a cache for storing "hot," frequently accessed data. From servers to their back-end storage, cost- and performance-conscious system architects can now balance how Flash is used within their organizations to maximize application performance, minimize rising IT costs, preserve high availability, protect data, and simplify management. NetApp also expanded its Alliance Partner Program to embrace hardware and software server-caching partners looking to develop solutions with NetApp. This will provide the widest coverage for joint customers' infrastructures as they deploy server-side caching to deliver increased ROI.
  • NetApp signs technology reseller agreement with Fusion-io. As part of its commitment to providing customers with end-to-end Flash technologies, NetApp entered into a resale agreement with Fusion-io, a leader in Flash memory solutions. NetApp will continue to resell Fusion-io ioMemory platform products and two server caching software products: ioTurbine for virtualized environments and Direct Cache for nonvirtualized environments.

NetApp Recognized for Its Culture and Innovative Spirit

  • NetApp repeats as one of the world's most innovative companies. For the second consecutive year, NetApp made Forbes magazine's "World's Most Innovative Companies" list for 2012. As the only storage vendor to make this year's list, the recognition is a testament to NetApp's 20 years of innovation and true innovative spirit which continues to thrive today to help customers and partners achieve great business outcomes.
  • NetApp cements its standing as one of the world's best places to work. NetApp was named the #3 best workplace in the world by the Great Place to Work Institute on November 13, 2012. It marks the second consecutive year that NetApp finished in the top 5 of this exclusive list and is a testament to the company's unique workplace culture and commitment to employee excellence which help produce great results for NetApp customers and partners.

Webcast and Conference Call Information
The NetApp second quarter fiscal year 2013 conference call will be broadcast live on the Internet at investors.netapp.com on Wednesday, November 14, 2012, at 2 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 be available after 4 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 third quarter of fiscal year 2013, the benefits to us and our customers of our products and services, the expected benefits of partnerships and alliances, 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 the continuing deliberations regarding future tax and fiscal policy in the U.S.; 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, Flash Accel and FlexPod are 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 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.

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 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 26, 2012   April 27, 2012
                                         ----------------- -----------------

                  ASSETS

Current assets:
  Cash, cash equivalents and investments $         5,571.0 $         5,398.5
  Accounts receivable, net                           615.0             830.9
  Inventories                                        213.2             161.5
  Other current assets                               488.5             435.6
                                         ----------------- -----------------
    Total current assets                           6,887.7           6,826.5

Property and equipment, net                        1,132.4           1,137.2
Goodwill and other intangible assets, net          1,098.3           1,141.2
Other non-current assets                             435.5             427.4
                                         ----------------- -----------------
  Total assets                           $         9,553.9 $         9,532.3
                                         ================= =================


   LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                       $           246.6 $           233.1
  Accrued compensation and other current
   liabilities                                       689.2             717.9
  1.75% Convertible Senior Notes due 2013          1,229.4           1,202.3
  Short-term deferred revenue                      1,408.5           1,366.5
                                         ----------------- -----------------
    Total current liabilities                      3,573.7           3,519.8
                                         ----------------- -----------------

Other long-term liabilities                          216.3             206.9
Long-term deferred revenue                         1,361.7           1,449.4
                                         ----------------- -----------------
    Total liabilities                              5,151.7           5,176.1
                                         ----------------- -----------------

1.75% Convertible Senior Notes due 2013                  -              62.6

Stockholders' equity                               4,402.2           4,293.6
                                         ----------------- -----------------
  Total liabilities and stockholders'
   equity                                $         9,553.9 $         9,532.3
                                         ================= =================



                                NETAPP, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (In millions, except net income per share amounts)
                                (Unaudited)

                               Three Months Ended       Six Months Ended
                             ----------------------  ----------------------
                               October     October     October     October
                              26, 2012    28, 2011    26, 2012    28, 2011
                             ----------  ----------  ----------  ----------

Revenues:
  Product                    $    995.8  $  1,016.2  $  1,893.8  $  1,981.9
  Software entitlements and
   maintenance                    219.4       198.0       437.9       396.2
  Service                         326.0       292.8       654.1       587.1
                             ----------  ----------  ----------  ----------
    Net revenues                1,541.2     1,507.0     2,985.8     2,965.2
                             ----------  ----------  ----------  ----------

Cost of revenues:
  Cost of product                 477.3       460.7       929.5       898.1
  Cost of software
   entitlements and
   maintenance                      7.0         5.6        13.6        10.9
  Cost of service                 143.0       127.7       278.7       246.3
                             ----------  ----------  ----------  ----------
    Total cost of revenues        627.3       594.0     1,221.8     1,155.3
                             ----------  ----------  ----------  ----------
Gross profit                      913.9       913.0     1,764.0     1,809.9
                             ----------  ----------  ----------  ----------

Operating expenses:
  Sales and marketing             488.2       454.1       971.1       908.9
  Research and development        223.8       199.7       445.2       398.3
  General and administrative       66.6        65.1       132.2       130.2
  Acquisition-related expense         -         1.7           -         3.9
                             ----------  ----------  ----------  ----------
    Total operating expenses      778.6       720.6     1,548.5     1,441.3
                             ----------  ----------  ----------  ----------

Income from operations            135.3       192.4       215.5       368.6

Other expense, net
  Interest income                  11.0         8.3        21.8        18.9
  Interest expense                (19.8)      (16.4)      (39.7)      (35.8)
  Other income (expense), net       1.2        (0.4)        4.3        (0.7)
                             ----------  ----------  ----------  ----------
    Total other expense, net       (7.6)       (8.5)      (13.6)      (17.6)
                             ----------  ----------  ----------  ----------

Income before income taxes        127.7       183.9       201.9       351.0

Provision for income taxes         18.1        18.3        28.5        45.9
                             ----------  ----------  ----------  ----------

Net income                   $    109.6  $    165.6  $    173.4  $    305.1
                             ==========  ==========  ==========  ==========

Net income per share:
  Basic                      $     0.30  $     0.46  $     0.48  $     0.83
                             ==========  ==========  ==========  ==========
  Diluted                    $     0.30  $     0.44  $     0.47  $     0.78
                             ==========  ==========  ==========  ==========

Shares used in net income per
 share calculations:
  Basic                           362.0       361.5       364.1       365.9
                             ==========  ==========  ==========  ==========
  Diluted                         368.2       376.0       369.7       390.8
                             ==========  ==========  ==========  ==========



                                NETAPP, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                               (In millions)
                                (Unaudited)

                               Three Months Ended       Six Months Ended
                             ----------------------  ----------------------
                               October     October     October     October
                              26, 2012    28, 2011    26, 2012    28, 2011
                             ----------  ----------  ----------  ----------

Cash flows from operating
 activities:
  Net income                 $    109.6  $    165.6  $    173.4  $    305.1
  Adjustments to reconcile
   net income to net cash
   provided by operating
   activities:
    Depreciation and
     amortization                  86.7        68.4       169.1       136.9
    Stock-based compensation       65.0        63.0       144.2       121.1
    Accretion of discount and
     issuance costs on Notes       14.4        11.5        28.7        25.2
    Tax benefit from stock-
     based compensation            37.0        50.4        28.2        79.1
    Excess tax benefit from
     stock-based compensation     (38.7)      (52.6)      (43.6)      (84.7)
    Other, net                    (15.9)      (43.8)      (39.9)      (74.4)
  Changes in assets and
   liabilities, net of
   acquisition of business:
    Accounts receivable           (31.3)      (29.4)      212.9       115.6
    Inventories                    (9.5)      (25.1)      (51.7)      (18.3)
    Accounts payable              (28.0)       22.8        13.9        45.6
    Accrued compensation and
     other current
     liabilities                  130.8        75.2       (15.9)     (173.1)
    Deferred revenue                4.4        60.2       (42.6)      126.9
    Changes in other
     operating assets and
     liabilities, net              11.9         4.0       (11.1)        5.8
                             ----------  ----------  ----------  ----------
      Net cash provided by
       operating activities       336.4       370.2       565.6       610.8
                             ----------  ----------  ----------  ----------
Cash flows from investing
 activities:
  Redemptions (purchases) of
   investments, net               159.5      (205.4)       93.4        40.4
  Purchases of property and
   equipment                      (67.1)      (93.3)     (129.0)     (191.6)
  Acquisition of business             -           -           -      (480.0)
  Other investing activities,
   net                              1.5         0.3         2.8         2.0
                             ----------  ----------  ----------  ----------
      Net cash provided by
       (used in) investing
       activities                  93.9      (298.4)      (32.8)     (629.2)
                             ----------  ----------  ----------  ----------
Cash flows from financing
 activities:
  Issuance of common stock         10.1         5.3        45.1        51.9
  Repurchase and retirement
   of common stock               (198.3)     (400.0)     (348.3)     (600.0)
  Excess tax benefit from
   stock-based compensation        38.7        52.6        43.6        84.7
  Other financing activities,
   net                              1.7         1.3        (0.3)        1.6
                             ----------  ----------  ----------  ----------
      Net cash used in
       financing activities      (147.8)     (340.8)     (259.9)     (461.8)
                             ----------  ----------  ----------  ----------

Effect of exchange rate
 changes on cash and cash
 equivalents                        4.9        (5.2)       (5.9)       (8.1)

Net increase (decrease) in
 cash and cash equivalents        287.4      (274.2)      267.0      (488.3)
Cash and cash equivalents:
  Beginning of period           1,529.4     2,543.2     1,549.8     2,757.3
                             ----------  ----------  ----------  ----------
  End of period              $  1,816.8  $  2,269.0  $  1,816.8  $  2,269.0
                             ==========  ==========  ==========  ==========



                                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     October     October     October
                              26, 2012    28, 2011    26, 2012    28, 2011
                             ----------  ----------  ----------  ----------

SUMMARY RECONCILIATION OF
 NET INCOME
NET INCOME                   $    109.6  $    165.6       173.4       305.1

Adjustments:
  Amortization of intangible
   assets                          21.5        21.7        42.9        46.0
  Stock-based compensation         65.0        63.0       144.2       121.1
  Acquisition-related
   expense                            -         1.7           -        11.9
  Non-cash interest expense        14.4        11.5        28.7        25.2
  Income tax effect of non-
   GAAP adjustments               (21.5)      (28.0)      (43.8)      (51.5)

                             ----------  ----------  ----------  ----------
NON-GAAP NET INCOME          $    189.0  $    235.5  $    345.4  $    457.8
                             ==========  ==========  ==========  ==========


NET INCOME PER SHARE         $    0.298  $    0.440       0.469       0.781

Adjustments:
  Amortization of intangible
   assets                         0.058       0.058       0.116       0.118
  Stock-based compensation        0.176       0.168       0.390       0.310
  Acquisition-related
   expense                            -       0.004           -       0.030
  Non-cash interest expense       0.039       0.031       0.078       0.064
  Income tax effect of non-
   GAAP adjustments              (0.058)     (0.075)     (0.119)     (0.132)

                             ----------  ----------  ----------  ----------
NON-GAAP NET INCOME PER
 SHARE                       $    0.513  $    0.626  $    0.934  $    1.171
                             ==========  ==========  ==========  ==========



                                NETAPP, INC.
                          SUPPLEMENTAL INFORMATION
                                (In millions)
                                 (Unaudited)

                              Three Months Ended October 26, 2012
                   ---------------------------------------------------------

                   Amortization
                        of                   Acquisition-  Non-cash
                    Intangible   Stock-based    related    Interest
                      Assets    Compensation    Expense    Expense    Total
                   ------------ ------------ ------------ --------- --------


Cost of product
 revenues          $       13.9 $        1.5 $          - $       - $   15.4
Cost of service
 revenues                     -          4.6            -         -      4.6
Sales and marketing
 expenses                   7.6         30.9            -         -     38.5
Research and
 development
 expenses                     -         19.3            -         -     19.3
General and
 administrative
 expenses                     -          8.7            -         -      8.7
Interest expense              -            -            -      14.4     14.4
                   ------------ ------------ ------------ --------- --------
Effect on income
 before income
 taxes             $       21.5 $       65.0 $          - $    14.4 $  100.9
                   ============ ============ ============ ========= ========



                               Six Months Ended October 26, 2012
                   ---------------------------------------------------------

                   Amortization
                        of                   Acquisition-  Non-cash
                    Intangible   Stock-based    related    Interest
                      Assets    Compensation    Expense    Expense    Total
                   ------------ ------------ ------------ --------- --------


Cost of product
 revenues          $       27.9 $        3.3 $          - $       - $   31.2
Cost of service
 revenues                     -         10.2            -         -     10.2
Sales and marketing
 expense                   15.0         69.9            -         -     84.9
Research and
 development
 expense                      -         43.0            -         -     43.0
General and
 administrative
 expense                      -         17.8            -         -     17.8
Interest expense              -            -            -      28.7     28.7
                   ------------ ------------ ------------ --------- --------
Effect on income
 before income
 taxes             $       42.9 $      144.2 $          - $    28.7 $  215.8
                   ============ ============ ============ ========= ========



                              Three Months Ended October 28, 2011
                   ---------------------------------------------------------

                   Amortization
                        of                   Acquisition-  Non-cash
                    Intangible   Stock-based    related    Interest
                      Assets    Compensation    Expense    Expense    Total
                   ------------ ------------ ------------ --------- --------

Cost of product
 revenues          $       14.0 $        1.4 $          - $       - $   15.4
Cost of service
 revenues                     -          4.2            -         -      4.2
Sales and marketing
 expenses                   7.7         30.4            -         -     38.1
Research and
 development
 expenses                     -         18.2            -         -     18.2
General and
 administrative
 expenses                     -          8.8            -         -      8.8
Acquisition-related
 expense                      -            -          1.7         -      1.7
Interest expense              -            -            -      11.5     11.5
                   ------------ ------------ ------------ --------- --------
Effect on income
 before income
 taxes             $       21.7 $       63.0 $        1.7 $    11.5 $   97.9
                   ============ ============ ============ ========= ========


                               Six Months Ended October 28, 2011
                   ---------------------------------------------------------

                   Amortization
                        of                   Acquisition-  Non-cash
                    Intangible   Stock-based    related    Interest
                      Assets    Compensation    Expense    Expense    Total
                   ------------ ------------ ------------ --------- --------

Cost of product
 revenues          $       27.9 $        2.5 $        5.4 $       - $   35.8
Cost of service
 revenues                     -          8.1            -         -      8.1
Sales and marketing
 expense                   18.0         59.0            -         -     77.0
Research and
 development
 expense                    0.1         34.2          2.6         -     36.9
General and
 administrative
 expense                      -         17.3            -         -     17.3
Acquisition-related
 expense                      -            -          3.9         -      3.9
Interest expense              -            -            -      25.2     25.2
                   ------------ ------------ ------------ --------- --------
Effect on income
 before income
 taxes             $       46.0 $      121.1 $       11.9 $    25.2 $  204.2
                   ============ ============ ============ ========= ========



                          NETAPP, INC.
           RECONCILIATION OF NON GAAP GUIDANCE TO GAAP
                 EXPRESSED AS EARNINGS PER SHARE
                       THIRD QUARTER 2013
                           (Unaudited)


                                             Third Quarter
                                                  2013
                                       -------------------------

Non-GAAP Guidance - Net Income Per
 Share                                       $0.53 - $0.58

Adjustments of Specific Items to
  Net Income Per Share for the Third
  Quarter 2013:
  Amortization of intangible assets              (0.06)
  Stock-based compensation expense               (0.21)
  Non-cash interest expense                      (0.04)
  Income tax effect                               0.07
                                       -------------------------
Total Adjustments                                (0.24)

GAAP Guidance - Net Income Per Share         $0.29 - $0.34

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Press Contact:
Ryan Lowry
NetApp
(408) 822-7544
Email Contact

Investor Contact:
Kris Newton
NetApp
(408) 822-3312
Email Contact

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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.
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...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
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...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
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...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
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 ...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
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.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 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 Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
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...
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...
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...
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.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, 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. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.