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Q1 revenue up 38 per cent year over year; eleventh consecutive quarter of growth
FOR IMMEDIATE RELEASE Sydney – August 18, 2004
Network Appliance, Inc. (NASDAQ: NTAP), the leader in advanced networked storage solutions, today reported results for the first quarter of fiscal year 2005. Revenues for the first fiscal quarter were $358.4 million, an increase of 38 per cent compared with revenues of $260.5 million for the same period a year ago and a six per cent increase compared with $337.0 million in the prior quarter [All figures are in US dollars].
For the first fiscal quarter, GAAP net income increased 73 per cent to $46.9 million, or $0.13 per share(1) compared with GAAP net income of $27.1 million, or $0.08 per share for the same period in the prior year. Pro forma(2) net income for the first fiscal quarter increased 73 per cent to $49.9 million, or $0.13 per share, compared with pro forma net income of $28.7 million, or $0.08 per share for the same period a year ago.
"NetApp demonstrated exceptional execution, a strong balance sheet and continued cash generation during the quarter. We continue to drive our solutions deeper into our customers' data centres and mission-critical areas to solve significant issues around business continuity, regulatory compliance and high data availability," said Dan Warmenhoven, CEO of Network Appliance. "Our focus is on expanding our market share and our results demonstrate that the market is continuing to move toward us."
Quarterly Highlights Throughout the first quarter of fiscal year 2005, Network Appliance reinforced its leadership position by deploying new tier-one storage solutions, expanding partnerships and enhancing its storage grid architecture.
Customers deploying NetApp during the quarter for a variety of database, collaborative, and other data centre and mission-critical applications included Audi AG, Canon, Catholic Healthcare West, China Everbright Bank, Ciena, City of Concord, ConocoPhillips, Fujitsu LTD, Gap Inc., GE Healthcare, Hearst Corporation, ING BHF Bank, Pixar, Progress Energy, Qualcomm, Sprint, Telstra and University of Georgia. All levels of enterprise customers have chosen to deploy NetApp for a variety of reasons – reduced complexity, a low total cost of ownership (TCO), and advanced management capabilities made possible through Data ONTAP and a range of additional storage software packages that unleash the value of enterprise data.
On the partners front, NetApp unveiled several new solution enhancements and partner offerings with McData, Ontrack Data Recovery, Oracle, Secure Computing, Symantec, Trend Micro and VERITAS to address a variety of data concerns including e-mail recovery, unified storage and security issues facing enterprise customers.
For storage grid architectures, the company continued to set the pace for the rest of the industry in iSCSI and IP SAN (storage area network), with more than 700 real-world production deployments to date, and reinforced its leadership in other storage application areas such as data protection/recovery, disk-based nearline storage, and database storage. In database storage in particular, NetApp demonstrated its prowess with large Oracle deployments at Universal Tax Systems and the South China Morning Post, and received a prestigious SAP Pinnacle Award for innovation around storage for SAP environments. Finally, Network Appliance also debuted its new midrange unified storage models, the FAS920 and FAS920c. Designed to provide affordable enterprise-class performance, reliability and advanced data management features for midrange applications, the FAS920 can power applications in Fibre Channel, iSCSI SANs and network-attached storage (NAS) simultaneously.
In corporate news, Network Appliance recently announced that it is the recipient of a Job Development Investment Grant (JDIG) from the governor of North Carolina to assist in any expansion of newly acquired NetApp offices in Research Triangle Park, North Carolina. NetApp also added two new members to its board of directors: Mark Leslie and George Shaheen.
Conference Call Information A replay of the NetApp quarterly results conference call is available until 7.00am (Sydney time), August 21, 2004 by dialing +1 (617) 801 6888 in Australia and New Zealand, replay code 62837719.
This press release and any other information related to the call will also be posted to the NetApp web site at http://investors.netapp.com/
Notes for Editors
About Network Appliance Network Appliance is a world leader in unified storage solutions for today's data-intensive enterprise. Since its inception in 1992, Network Appliance has delivered technology, product and partner firsts that continue to drive ‘The evolution of storage(TM)’. Information about Network Appliance(TM) solutions and services is available 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 market and marketshare trends which benefit the Company and continued customer acceptance of the Company's products. These forward-looking statements involve risks and uncertainties, and actual results could vary. Factors that could impact our ability to achieve our goals include: general economic and industry conditions, including expenditure trends for storage- related products; our ability to deliver new product architectures and products which meet market acceptance; our ability to design products which compete effectively from a price and performance perspective; and other important factors as described in Network Appliance, Inc.'s reports and documents filed from time to time with the Securities and Exchange Commission, including our most recently submitted 10-K and 10-Q.
Footnotes: 1. Earnings per share represents the diluted number of shares for all periods presented. 2. Pro forma results for all periods presented exclude amortisation of intangible assets, stock compensation, net gain on investments and the related effects on income taxes.
NetApp is a registered trademark and Network Appliance, Data ONTAP, and The evolution of storage are trademarks of Network Appliance, Inc. in the U.S. and other countries. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.
Network Appliance Usage of Pro Forma 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 operational performance. In addition, these non-GAAP financial measures facilitate management's internal comparisons to the Company's historical operating results and comparisons to competitors' operating results. We include these non-GAAP financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making such as employee compensation planning. In addition, 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.
For further information please contact – Simon Green Network Appliance, Inc. tels + 61 (0) 2 9779 5610
Press contact – Derek Evans Gotley Nix Evans Pty Ltd tels +61 (0) 2 9957 5555 & +61 (0) 410 601 673 email@example.com