Network Appliance Announces Results for Fourth Quarter and Fiscal Year 2006
biz.yahoo.com
Wednesday May 24, 4:05 pm ET
Q4 Revenues $598.0 Million, up 32% Year-over-Year
Fiscal Year 2006 Revenues $2.07 Billion, up 29% Year-over-Year
SUNNYVALE, Calif.--(BUSINESS WIRE)--May 24, 2006--Network Appliance, Inc. (NASDAQ:NTAP), the leader in advanced networked storage solutions, today reported results for the fourth quarter and fiscal year 2006. Revenues for the fourth fiscal quarter were $598.0 million, an increase of 32% compared to revenues of $451.8 million for the same period a year ago and an increase of 11% compared to $537.0 million in the prior quarter.
For the fourth fiscal quarter, GAAP net income was $59.2 million, or $0.15 per share(1) which includes a non-recurring income tax expense of $22.5 million, associated with the Repatriation of Foreign Profits under the Jobs Creation Act of 2004. This compares to GAAP net income of $63.4 million, or $0.16 per share for the same period in the prior year. Non-GAAP(2) net income for the fourth fiscal quarter increased 34% to $89.3 million, or $0.23 per share, compared to non-GAAP net income of $66.6 million, or $0.17 per share for the same period a year ago.
Revenues for fiscal year 2006 totaled $2.07 billion, an increase of 29% compared to revenues of $1.6 billion for fiscal year 2005.
For fiscal year 2006, GAAP net income increased 18% to $266.5 million, or $0.69 per share, compared to GAAP net income of $225.8 million, or $0.59 per share for fiscal year 2005. Non-GAAP net income for fiscal year 2006 increased 33% to $315.3 million, or $0.81 per share, compared to non-GAAP net income of $237.7 million, or $0.62 per share for fiscal year 2005.
"Our fourth quarter performance tops a year of accelerating quarterly growth. This year we broadened our portfolio of enterprise data management solutions, and our results demonstrate how our value proposition resonates with customers," said Dan Warmenhoven, CEO of Network Appliance. "By helping customers reduce the cost and complexity of their storage and data management environment, Network Appliance has established itself as the innovative alternative in the storage market. We look forward to fiscal year 2007 with optimism, as we further increase our market opportunity with a new ultra high-end product and launch our next-generation operating system."
Outlook
Network Appliance estimates that growth in revenue for the first quarter of fiscal year 2007 will be in the range of 2% to 4%, which translates to 36% to 39% growth year-over-year.
Including the implementation of SFAS 123R and with current information and assumptions, the company expects first quarter GAAP earnings per share to finish between $0.13 and $0.16 per share. Network Appliance expects first quarter non-GAAP earnings per share to be in the range of $0.23 to $0.24 per share.
For the full fiscal year 2007, Network Appliance estimates that revenues will finish in the range of 28% to 30% higher than fiscal year 2006.
The company expects GAAP earnings per share for fiscal year 2007 to be in the target range of $0.62 and $0.72 per share. Network Appliance estimates full-year non-GAAP earnings per share to be in the range of $0.99 to $1.04 per share.
Quarterly Highlights
During the fourth quarter of fiscal year 2006, Network Appliance further expanded its breadth of disk-to-disk backup and security solutions, enhanced its Fibre Channel data management offerings, and continued its leadership position in the iSCSI and network-attached storage (NAS) markets.
Earlier in the quarter, NetApp introduced an array of products, technologies, and services that highlight the broad range of NetApp® disk-to-disk backup and security solutions which simplify data backup procedures, improve recoverability, and lower backup infrastructure expenses. The new products included a significant expansion of the NetApp disk-to-disk backup family, including two offerings in the new NearStore® Virtual Tape Library (VTL) family, new Decru DataFort(TM) E-Series functionality for unified NAS-iSCSI protocol support, and enhanced capabilities for NetApp customers to protect their remote office/branch office (ROBO) data as well as that in their data centers. Complementary new services announced this quarter included a VTL Design and Implementation Service, a Disaster Recovery Design and Implementation Service, and a Backup and Recovery Design and Implementation Service.
NetApp SnapManager® for Microsoft® Exchange software achieved Microsoft Simple SAN designation for Microsoft Windows® Server Backup/Quick Restore. Achieving the Microsoft Simple SAN Component designation demonstrates to the market that NetApp and Microsoft are providing solutions for quick recovery of Exchange Server 2003 SP2.
This quarter, the company introduced its SnapSearch and Recovery software, the industry's first solution for search and recovery of online backup data. The new software enables customers to quickly and efficiently recover specific files from backup and archive data in minutes.
In other product news, NetApp announced its storage solutions will now support 4Gb Fibre Channel (FC). 4Gb FC combined with NetApp unified storage systems and leading-edge data management software gives customers a compelling and powerful solution for managing large and ever-growing amounts of data. NetApp 4Gb FC will allow customers to increase the performance and availability of critical data and applications, while simplifying complex data management environments, improving productivity in application administration, and lowering storage costs.
This quarter, NetApp announced that according to IDC's Worldwide Quarterly Disk Storage Systems Tracker Q4 2005(3) (as of December 2005), it maintained its position as the market leader in iSCSI in both revenue and capacity for the prior 11 quarters and continued its leadership in capacity market share in NAS. NetApp demonstrated continued leadership in the iSCSI storage market, with number-one market share in capacity shipped (34.6%) and revenue (32.0%) for the full year 2005. In FC SAN, NetApp nearly doubled its year-end 2005 revenue market share to 1.6%, up from 0.9% in 2004, doubled its unit share to 2.2% from 1.1%, and grew capacity shipped by 230%. Finally, NetApp maintained leadership in its core NAS market, with a 42.6% capacity market share, and grew capacity shipped by 56% from year end 2004.
Also this quarter, NetApp extended its position in the NAS and unified storage market according to Gartner's report "Market Share: NAS/Unified Storage, Worldwide, 2000-2005."(4) The total NAS and unified storage market grew 16.1% in 2005 and NetApp grew more quickly than the market, posting annual revenue growth of 22.4%. According to Gartner, the company increased its market share from 52.4% in 2004 to 55.2% in 2005. NetApp leads in both the high-end and midrange parts of the market, with 88.9% market share and 70.5% market share by revenue respectively.
On the partner front, NetApp unveiled several new solution enhancements and partner offerings with BakBone, Bocada, LogLogic, Microsoft, Syncsort and Topio to address a variety of data concerns, including data protection, compliance, data management, backup and recovery, and data replication.
In corporate news, NetApp debuted at number 929 on the FORTUNE 1000 list, the magazine's annual ranking of America's largest corporations determined by revenue. This quarter NetApp also announced the 2005 NetApp Innovation Award winners. The NetApp Innovation Awards recognize customers and partners who have implemented NetApp solutions in an innovative way to positively impact their business.
Internationally, NetApp inaugurated its new development center facility, the only one outside of the United States, at Golf Links Software Parks, Bangalore. The facility currently has the capacity to seat up to 750 people and will be a strategic center for research and product development, creating technologies that enable the largest enterprises to store, move, and manage data more effectively. A large number of Fortune 500 enterprises are global customers of NetApp, and in India the enterprise customer base is over 250 strong. |
