Painters use the same brush for most of their paintings.
We can all recognize a Van Gogh
Gilder's WAN/oPtical bias means he will apply the same thought process to storage. If dumb is what he wants then he should champion holographic storage with WDM right to the hologram. I'll take Ed Frymoyer on this subject. Gonna keep these FC seats for a few more years. Those Intelliband PDFs don't talk about dumb anything, but they
do talk about switched fabric.
Don't think those holograms will be here
Will NTAP be getting some serious upgrades?...........
Network Appliance Announces Revenues Up 90%, Net Income Up 92% in Second Fiscal Quarter; Company Announces 2-For-1 Stock Split
SUNNYVALE, Calif.--(BUSINESS WIRE)--Nov. 16, 1999--Network
Appliance, Inc. (NASDAQ: NTAP), the leading provider of
network-attached data access and management solutions, today reported
revenues of $124.7 million for the second fiscal quarter ended October
29, 1999, an increase of 90% compared to revenues of $65.6 million for
the same period a year ago.
Net income for the quarter increased 92% to $16.0 million or
$0.19 per share, compared to net income of $8.4 million, or $0.11 per
share, for the same period a year ago.
Revenues for the first six months of the current fiscal year
totaled $228.0 million, an increase of 85% compared to revenue of
$123.0 million for the first six months of the prior fiscal year. For
the first six months of the current fiscal year, net income increased
91% to $29.5 million, or $0.35 per share, compared to net income of
$15.5 million, or $0.20 per share for the first six months of the
prior fiscal year. Earnings per share for the first six months of the
current fiscal year increased approximately 75% from the first six
months of the prior fiscal year.
"The Internet is pacing the growth of the global economy and
Network Appliance continues to benefit from our market leadership
position in storage appliances and web caching," said Dan Warmenhoven,
President and CEO of Network Appliance, Inc. "During the second
quarter, demand for our filer and NetCache(TM) products accelerated
across each of our geographic areas. We are especially pleased with
the growing customer acceptance of our software products, which have
become an increasing percentage of our business over the past year."
The Company also announced a two-for-one stock split of the
Company's common stock to be distributed on or about December 20, 1999
to holders of record on December 10, 1999. After the split, the
Company will have approximately 149,300,000 shares of its common stock
outstanding based on shares outstanding at October 29, 1999.
About Network Appliance
Network Appliance, a veteran in network file serving and caching,
has been providing data access solutions for over six years. Major
corporations and ISPs, including Bear Stearns, Yahoo!, Siemens,
Lockheed-Martin, Cisco, Motorola and Texas Instruments have deployed
NetApp(R) solutions. NetApp file servers (called "filers") and
Internet caching solutions (NetCache appliances) deliver fast,
simple, reliable and cost-effective access to network-stored data and
enable simultaneous shared file services for UNIX(R), Windows(R) and
the World Wide Web. The company pioneered the concept of the "network
appliance," an extension of the industry trend toward dedicated,
specialized products that perform a single function. Network
Appliance(TM) filers and NetCache appliances are based on the
company's patented data access solutions including Data ONTAP(TM)
software and standards-compliant hardware.
Note to Editors: NetApp is a registered trademark in the U.S. and
other countries and Network Appliance, Data ONTAP and NetCache are
trademarks of Network Appliance, Inc. All other brands or products are
trademarks or registered trademarks of their respective holders and
should be treated as such.
Safe Harbor/Forward-looking Statement
This press release may be deemed to contain forward-looking
information. Any forward-looking statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements, including without limitation, any
statements as to future events or future financial results of Network
Appliance, Inc., may be significantly and materially impacted by risks
and uncertainties. In evaluating such statements, readers should
specifically consider various factors that could cause actual events
or results to differ materially from those indicated, including
without limitation, factors 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.
NETWORK APPLIANCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Quarter Six Months
Ended Ended
Oct. 29, Oct. 30, Oct. 29, Oct. 30,
1999 1998 1999 1998
---- ---- ---- ----
NET SALES $124,712 $ 65,625 $ 227,991 $ 123,000
COST OF SALES 51,516 26,881 94,055 50,120
-------- -------- -------- --------
GROSS MARGIN 73,196 38,744 133,936 72,880
-------- -------- -------- --------
OPERATING EXPENSES:
Sales and marketing 32,548 17,064 59,432 31,999
Research and
development 13,462 6,722 24,682 12,803
General and
administrative 4,487 2,552 8,305 4,437
-------- -------- -------- --------
Total operating
expenses 50,497 26,338 92,419 49,239
-------- -------- -------- --------
INCOME FROM OPERATIONS 22,699 12,406 41,517 23,641
OTHER INCOME, net 2,181 995 4,244 1,116
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES 24,880 13,401 45,761 24,757
PROVISION FOR INCOME TAXES 8,832 5,025 16,245 9,284
-------- -------- -------- --------
NET INCOME $ 16,048 $ 8,376 $ 29,516 $ 15,473
NET INCOME PER SHARE:
BASIC $ 0.22 $ 0.12 $ 0.40 $ 0.23
DILUTED $ 0.19 $ 0.11 $ 0.35 $ 0.20
SHARES USED IN PER SHARE
CALCULATION:
BASIC 74,122 67,878 73,607 67,468
DILUTED 84,492 76,112 83,832 75,544
NETWORK APPLIANCE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
Oct. 29, April 30,
1999 1998
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $220,828 $221,284
Short-term investments 51,673 5,800
Accounts receivable, net 78,747 57,163
Inventories 17,542 13,581
Prepaid expenses and other 6,290 7,384
assets
Deferred taxes 20,134 10,134
Total current assets 395,214 315,346
PROPERTY AND EQUIPMENT, net 27,080 19,271
DEPOSITS 7,170 7,000
OTHER ASSETS 4,840 4,730
$434,304 $346,347
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 27,358 $ 15,126
Income taxes payable 460 1,108
Accrued compensation and
related benefits 18,986 15,189
Other accrued liabilities 8,611 7,633
Deferred revenue 13,223 11,474
Total current liabilities 68,638 50,530
LONG-TERM OBLIGATIONS 52 93
SHAREHOLDERS' EQUITY 365,614 295,724
$434,304 $346,347
CONTACT:
Network Appliance, Inc.
Billie Fagenstrom, 408/822-6284 (IR)
billief@netapp.com
Adam Trunkey, 408/822-6314 (PR)
atrunkey@netapp.com
KEYWORD: CALIFORNIA
BW0539 NOV 16,1999
13:09 PACIFIC
16:09 EASTERN |
