Network Appliance Announces Results for Second Quarter Fiscal Year 2002
SUNNYVALE, Calif.--Nov. 13, 2001--Network Appliance, Inc. (Nasdaq:NTAP - news) today announced results for the second quarter of fiscal year 2002. Revenues for the second fiscal quarter were $194.7 million, compared to revenues of $260.8 million for the same period a year ago, and $200.4 million in the prior quarter.
Pro forma net income for the second quarter was $7.7 million, compared with $36.9 million for the same period a year ago. Pro forma earnings per share for the second quarter was $0.02 per share compared with $0.10 per share for the same period a year ago, and $0.01 per share in the prior quarter. For the second quarter, on an as-reported basis with adjustments for acquisitions, stock-based compensation, restructuring charges and write-down on equity investments, the net loss for the quarter was $11.2 million, or $0.03 net loss per share, compared with net income of $35.4 million, or $0.10 net income per share for the same period in the prior year.
Revenues for the first six months of the current fiscal year totaled $395.1 million, compared to revenue of $491.9 million for the first six months of the prior fiscal year.
Pro forma net income for the first six months of the current fiscal year totaled $12.4 million, or $0.04 per share, compared to pro forma net income of $69.5 million, or $0.19 per share for the first six months of the prior fiscal year. For the first six months, on an as-reported basis with adjustments for acquisitions, stock-based compensation, restructuring charges and write-down on equity investments, the net loss for the first six months was $11.7 million, or $0.04 net loss per share, compared with net income of $40.3 million, or $0.11 net income per share for the same period in the prior year.
``This quarter Network Appliance executed our strategy of winning in enterprise accounts. We are being selected in significant business opportunities for NetApp® Center-to-Edge(TM) storage solutions with the leading Fortune Global 500 companies in the financial services, manufacturing, energy and telecommunications industries,'' said Dan Warmenhoven, CEO of Network Appliance. ``Looking forward, Network Appliance is solidly positioned to take increased advantage of the open systems storage market as it continues to transition to a network storage model.''
Quarterly Highlights
Network Appliance's successful focus on being a strategic storage systems supplier to the Fortune Global 500 was clearly demonstrated this quarter. Today, NetApp counts as customers: 9 of the top 10 energy companies, 10 of the top 10 telecommunications firms, 7 of the top 10 financial services companies, and 5 of the top 10 major manufacturing companies.
Key customers that selected Network Appliance include: Bechtel, Verizon, AT&T, KPNQwest, Ford Motor Company, Dana Corporation, Clorox, The Institute for Genomic Research, the National Institute of Health, the US Department of Energy, and General Electric.
Those Fortune Global 500 customers are demanding low total cost of ownership (TCO), in addition to low acquisition costs from their IP-based network storage IT infrastructure as they manage mission-critical midrange and high-end business applications.
In September, Network Appliance outlined its global data fabric strategy and launched new storage solutions for today's evolving data center. NetApp announced the F880 series filers, the company's first multiprocessor systems that extend the high end of the NetApp Center-to-Edge product line. The company also began shipping five new software upgrades, including SnapManager® for Microsoft® Exchange 2000, our first block access product for Windows 2000 environments.
The new software from Network Appliance is designed to ease the deployment and management of global data fabrics, including NetCache® 5.2, which delivers improved security and manageability in Windows 2000 environments. The Global Request Manager option in NetCache 5.2 further speeds access to content within a NetApp technology-powered content delivery network. Data Fabric(TM) Manager 1.1 software allows customers to view and centrally manage hundreds of terabytes of networked storage.
NetApp also shipped ContentDirector(TM) 2.0 and ContentReporter(TM) 3.0, content distribution management software that automates and simplifies the movement and management of streaming media, Web pages, and rich content files from centralized storage locations to access points around the world.
The company will host a conference call on Tuesday, November 13, at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time, to discuss its results. The conference call will be broadcast live via the Internet from the investor relations section of Network Appliance's Web site at www.netapp.com. The conference call will also be available live in a listen-only format at (800) 252-8304 in the United States, and (212) 346-7434 outside the United States. A replay will be available by dialing (800) 633-8284, replay code 19944445.
Pro forma results exclude the impact of in-process research and development, amortization of intangible assets, stock compensation expense, restructuring charges, write-down on equity investments and the related income tax effect.
Earnings per share represent the diluted number of shares for all periods presented.
About Network Appliance
Network Appliance, Inc., a leader in network data 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 Citicorp Securities, Lockheed, Merrill Lynch, Oracle, Texas Instruments, and Yahoo! utilize NetApp global data management 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 appliances) are coupled with powerful content distribution and reporting software. This Center-to-Edge solution offers seamless data management from the back-end data center to the edge of the network quickly, simply, and reliably. The Network Appliance(TM) 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® and Windows® environments.
Note to Editors: NetApp, NetCache, and SnapManager are registered trademarks and Network Appliance, Center-to-Edge, ContentDirector, ContentReporter, DataFabric, and Data ONTAP are trademarks of Network Appliance, Inc. in the U.S. and other countries. Microsoft and Windows are registered trademarks of Microsoft Corporation. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.
``Safe Harbor'' Statement under U.S. Private Securities Litigation Reform Act of 1995
The statements regarding Center-to-Edge adoption, and market trends toward the storage network model, 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, customer acceptance of product architectures, 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. |
