Network Appliance Revises Outlook for Fourth Quarter Fiscal Year 2001
siliconinvestor.com
SUNNYVALE, Calif., Apr 11, 2001 (BUSINESS WIRE) -- Network Appliance, Inc. (Nasdaq: NTAP chart, msgs) today announced that revenue and earnings per share for the fourth quarter ending April 27, 2001, are expected to be below the company's previously announced guidance level.
Revenue for the fourth quarter is expected to be in the range of 20 to 25% below last quarter revenue of $288.4 million and pro forma earnings per share in the range of $0.01 to $0.03 per diluted share.
"The direction of the global economy remains uncertain, and as our current quarter progresses, we have experienced greater delays in customer orders than anticipated, requiring us to revise our outlook for the fourth quarter fiscal year 2001," said Dan Warmenhoven, Chief Executive Officer. "Despite the current economic challenges, we continue to see strong customer interest in our data management, storage and content delivery solutions, particularly in enterprise environments for database and "center-to-edge" deployments. With an improving economy we expect customer demand to return to healthier levels."
Warmenhoven further commented, "During this slowing economic trend, we have implemented expense measures to control discretionary spending and reduce contract and temporary staff. We are selectively hiring in sales and will continue our strategic investments in R&D to strengthen Network Appliance's position in the marketplace."
Conference Call
Network Appliance will hold a conference call at 2:00 p.m. PST on Wednesday, April 11, 2001, with Dan Warmenhoven, Chief Executive Officer, Tom Mendoza, President and Jeff Allen, Executive VP of Finance and Operations and CFO. The call will be available via webcast at www.netapp.com or dial 888/849-9184 in the US, or 212/271-4763 for international callers. A replay will also be available for 72 hours following the conference call at 800/633-8284 in the US, or 858/812-6440 for international. The access code for the replay is: 18596192. Final results for the fiscal fourth quarter 2001 is scheduled to be released on May 15, 2001.
About Network Appliance, Inc.
Network Appliance, Inc., a veteran in network file storage and content delivery, has been providing data access solutions since 1992, and is a member of both the S&P 500 and NASDAQ 100 index. Major corporations and service providers, including Lycos, Yahoo!, Citicorp Securities, Siemens, Lockheed, Cisco, Motorola, and Texas Instruments have deployed NetApp solutions.
The company pioneered the concept of the "network appliance," an extension of the industry trend toward dedicated, specialized products that perform a single function. NetApp storage and content delivery platforms (filers and NetCache(TM) appliances) are coupled with powerful content distribution and reporting software. This center-to-edge(TM) solution offers seamless data management from the back-end data center to the edge of the network quickly, simply, and reliably. The Network Appliance product portfolio utilizes the company's innovative data access software, known as the Data ONTAP(TM) operating system, as well as standards-compliant hardware. It also offers multiprotocol support and transparent integration for UNIX(R) and Windows(R) environments.
"Safe Harbor" Statement under U.S. Private Securities Litigation Reform Act of 1995
The statements regarding expected revenue and earnings per share for the fourth quarter of fiscal year 2001 and fiscal year 2002 are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement regarding future events or the future financial performance of Network Appliance Inc. that involves risks or uncertainties. In evaluating these statements, readers should specifically consider various factors that could cause actual events or results to differ materially from those indicated, including without limitation; continuing decline in the general economic conditions, customer demand for products and services, increased competition, inherent risk in the international operations and other important factors as described in Network Appliance, Inc. reports and documents filed from time to time with the Securities and Exchange Commission, including its mostly recently submitted 10-K and 10-Q.
NetApp is a registered trademark and Network Appliance, NetCache, Data ONTAP and center-to-edge 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.
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