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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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WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
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, Containers, 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 opportunity. Submit y...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today that 24Notion has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...