CC note - lees neat :P
NTAP CC Notes 5/14/02
Jeff Allen - safe harbor
- Rev 204.9M down 9.3% y2y, up q2q 3.3% 198.3M of q3
- North A 59% up silghtly, europe 30%
- Icon 11% of rev.
- 4th q seasonality well above 1 in book to bill.
- completed goal of backlog of 4 weeks.
- 114.7M pro forma up 105.8M last q
- Expect ope exp to decline
- 64% GM up 180 basis points from last q - fav products
- software is growing through upgrades. 23% of rev.
- pro op inc 16.4M
- 14.6M in net pro form
- EPS 0.04 354M share outstanding
- 24% tax rate and 28% for the FY
- 7.8M GAP net income - 4.2M in restructuring in cloing a facility
-6.4M in amort/stock comp expense.
- 280 ee headcount, up 45 from last q
Cash 454M in cash/inv
41M in cash generated in q
purchased building in sunnyvale
DSO 65 days vs. 64 last q, no expect measureable reduct next
12.4 inventory turn up from 11.7 last q
GM have strengthen due ocost reduction, software subs
Dan W - Pres.
- Design wins, BA sat, LMT, Bear Stearns, VZ, chinese telecom ?
- Database was 1/3 of rev. Sybase, Oracle, software
- ELMX, Sybase, Fujitsu collaboration on high performance database architecture.
- CA, Connetective, STOR, VRTS, for "near stor" solution product
- Burk secure customer indicate customer are satified. Netfiler was top 1% of satisfaction.
- Tested by slow IT environment.
- Parnter with MSFT, ORCL, IBM, Sybase in database. Database booking are increasing every quarter. Service partners such IBM, Accenture are helping.
- BRCD, CSCO, LGTO, Quatnum, VRTS, STOR, for storage partner.
- Launched many new systems.
- Integrating Net Filer into MSFT exchamnge and ORCL databases.
Jeff on outlook
- Continue to be pleased tough IT environment
- Rev for q1 205-215M with book bill of 1/1
- GM should continue 60M
- oper exp decline
- 0.04-0.05 EPS
Q?A
Q: Don Young USCW Congrat on good Q. Synthetic lease and Expenses.
A: Not expense change due to lease. Went to more trade shows. Increased commission at year end.
Q: Kim Alexisy PRU - cash, outlook
A: "Cacheing"? was 12% of rev driven DT revs. Expect flat IT spend through 2002. Financial service decreasing budget, but Manufacturer increasing. People are seeing sorage consolidation and 4-5 growth. SAN/NAS both will increase. IDC has 25% growth but that is aggressive. Most are figuring 20% growth rate for market. Expect 950M for the year.
Q: Marc Kellerher FA - deferred rev jump, strong book/bill
A: Deferred rev is rec over subscription life, The strength andof software and service drove it higher. Expect some seasonality in first quarter so book/bill guidance is flat for the q. Normal 90 day sale cycle. Every year, the first quarter is always challenge.
Q: Dane Lewis congrats, GM driver.
A: Not good at predicting GM. Software mix around extended applications that we see growth. See a pick up in long term upgrades so that has helped.
Q: Clint Bond - SSB Backlog.
A: We achieved 4 week backlog goal so it will grow along with revs. Unit volume 2100 units per q. Net cache was where the growth was. ASP has been around 80K each q. First month of the quarter is nonlinear. Although revs are up and we will not eat into backog.
Q: Robert Montgue -RBC Cap - Software breakout, cash
A: Software 23% up 1.5%, "Nearstor" was few % of rev. Excited about breath of sales. Cache was 10% last q, and 12% this q. Relationship with MSFT continues to improve. Block service over ethernet is what people want.
Q: Bill Lewis - JPNHQ - Broaden channel
A: Channel mix was not substantially changed. 78% was direct. Hope to dev channel parnership. In Asia we are strong there. China and India are buying. Channel partners help us drive into enterprise market.
Q: Peter Lay WBS - GM price climate
A: We are taking advantage of CPQ/HWP confusion they are experiencing. Our statement is "Raise the Top line". Shipped 3 Petabytes last q, 3.8Pb this quarter.
Q: Lin Shevy AG E. Caching rev.
A: DT is world's larging cacheing network. Increased this quarter. Prob Expect 9-14% of revs. Internet vertical was 5% and large techs TXN and CSCO was large and 10%. Financial service and Telco and Federal was strong. DAS? will be a small % of network application.
Q: Doug TW part - software sub agreement
A: Most are 1 year agreement, some 3 years agreements. G&A was down q2q. Did not make bad debt reserves.
Q: Will Slaughter - RWBaird - capex, new products
A: Biggest prod out will be SAN products and NAS and SAN converge. Upgraded every product. Focusing on enterprise features. Started shipping sync mirrors. NearStor is exciting product for data recovery and distaster recovery. CAPEX was 10M - equipment, test labs, building improvments, people contracted.
Q: David Bailey - Ger Kl Mad - rev
A: Rev was just fine and we are going to build a backlog. Strength was in all three parts of the world.
Q: Glen DDB N - enviroment vs. 6-8 wk ago.
A: Enviroment has improved. Customers have a IT budget that they are comfortable with. CIO have a budget for data recovery, disaster recovery, and remore office use.
Q: Alin Sha Wu - BA - DAS sold?
A: DAS is a software feature an a link attached to the software over a giga bit ethernet link. We lead a data management solution not DAS. Then we take them into file storage, simply database service. DAS was large file transfer between systems. We are working with application vendors to utilize DAS.
Q: John Roy - ML Cap issues
A: Was trending up 75% of use. Customer buy what they need, 15% is expansion of storage addition.
Q: Andrew - Bear Stearns - options
A: Reported in the dilute per share line.
Q: Harry Blount LEH - fed govt
A: 6 years with Fed govt. Intelligence community is top 5 customer. Our technology well thought of. Was the single fastest growing segment. Very happy customer in the Defense department. We won alot mapping jobs. Backlog is mostly product, some subscription.
Q: Bill Lewis - Forward Guidance, near term flatness vs. 20% industry
A: It is seasonalitly. Book to bill is historically low in q1. We will grow at or above industry.
Q: CFSB - top line growth and oper Margin. EMC in nearstor.
A: Our goal is to improve operating margin. EMC announced something to compete. People like that is unique appliance and NTAP products have proven to work.
Q: GM still 60%. Why not agressive in sizing.
A: Our discounts have trended up. We got a low cost business model. We are a price per gig leader. 18 months NTAP was in the tech internet space. We are installed in many large accounts and they like it. If buying rebounds in the Fortune 500, then NTAP will be in more companies.
Jack |
