Network Appliance Announces Revenues Up 124% and Pro Forma Net Income Up 140% i
SUNNYVALE, Calif.(BUSINESS WIRE)--Aug. 14, 2000--Network Appliance, Inc.
(NASDAQ: NTAP), today reported revenues of $231.2 million for the first fiscal
quarter ended July 28, 2000, an increase of 124% compared to revenues of $103.3
million for the same period a year ago.
Pro forma net income for the quarter, which excludes in-process research and
development and amortization of intangible assets increased 140% to $32.3
million, or $0.09 per share, compared to net income of $13.5 million, or $0.04
per share for the same period a year ago. Pro forma net income was up 32% from
the $24.5 million reported in the fourth quarter of fiscal year 2000.
During the first quarter of fiscal 2001, the Company completed the acquisition
of Orca Systems, Inc. and incurred in-process research and development charges
and amortization of intangible assets of $27.3 million, or $0.08 per share.
Actual net income for the quarter was $5.0 million, or $0.01 per share compared
with $13.5 million, or $0.04 per share for the same period a year ago.
"Revenue for the quarter was driven by the overall growth of the external
storage market, as customer demand for high-end, scalable systems and data
management software expanded through the quarter," said Dan Warmenhoven, CEO of
Network Appliance. "Storage is becoming the most critical element of IT
infrastructures for today's content-centric global businesses and Network
Appliance is very well positioned as a leader in network-attached storage and
content delivery solutions."
Quarterly Highlights
During the quarter, Network Appliance acquired Orca Systems, a Waltham,
Massachusetts-based developer of Virtual Interface (VI) Architecture software
for clustering UNIX(R) and Windows NT(R) enterprise-class systems.
NetApp participated with 35 other leading companies in the rollout of two major
industry technology initiatives, Open Storage Networking (OSN), and the Direct
Access File System Collaborative (The DAFS Collaborative), both supporting
NetApp's strategy to address new and expanding segments of the storage systems
market.
A product milestone was achieved when Network Appliance began shipping the
NetCache(TM) C1100, designed for enterprise customers and Internet Service
Providers (ISPs). The C1100 is the industry's first ultra-thin, rack-mountable
streaming media solution that supports the widest array of streaming media
formats and Internet protocols.
Also during the quarter, Network Appliance increased membership in its Powered
By Network Appliance program to over 70 Internet and e-business companies. Major
customer wins announced for NetApp(R) filer and NetCache solutions included
Geoquest, Fujitsu Siemens, BT OpenWorld, Discovery.com and NetLedger.
Earnings per share and the number of shares used in the per-share calculation of
all periods presented reflect the two-for-one stock splits that were effective
December 20, 1999 and March 22, 2000.
About Network Appliance
Network Appliance, a veteran in network file serving and caching, 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 ISPs, including Lycos, Yahoo!,
Citicorp Securities, Siemens, Lockheed, Cisco, Motorola, and Texas Instruments
have deployed NetApp(R) solutions. NetApp Internet caching solutions
(NetCache(TM) appliances) and file servers (filers) deliver fast, simple,
reliable, and cost-effective access to network-stored data and enable
simultaneous shared file services for UNIX(R), Windows NT(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 innovative data access software known as the Data ONTAP(TM) operating
system and standards-compliant hardware.
Note to Editors: NetApp is a registered trademark in the U.S. and Network
Appliance, Data ONTAP and NetCache 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.
Safe Harbor/Forward-looking Statement
This press release may be deemed to contain forward-looking statements. 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 BALANCE SHEETS
(In thousands)
(Unaudited)
July 28, April 30,
2000 2000
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $331,749 $279,014
Short-term investments 105,203 74,477
Accounts receivable, net 138,201 108,902
Inventories 22,866 20,434
Prepaid expenses and other 14,927 27,958
Deferred income taxes 16,850 22,215
---------- ----------
Total current assets 629,796 533,000
PROPERTY AND EQUIPMENT, net 65,787 47,949
INTANGIBLE ASSETS, net 23,909 389
OTHER ASSETS 9,660 10,895
----------- ----------
$729,152 $592,233
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 49,967 $ 34,061
Accrued compensation and
related benefits 33,456 34,902
Other accrued liabilities 32,961 21,288
Deferred revenue 31,648 23,182
---------- ----------
Total current liabilities 148,032 113,433
--------- ---------
LONG-TERM OBLIGATIONS 54 54
------------- -------------
SHAREHOLDERS' EQUITY 581,066 478,746
--------- ---------
$729,152 $592,233
======== ========
NETWORK APPLIANCE, INC.
PRO FORMA (1) CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)
Quarter Ended
-------------
July 28, July 30,
2000 1999
---- ----
NET SALES $231,159 $103,279
COST OF SALES 89,457 42,539
---------- ----------
GROSS MARGIN 141,702 60,740
--------- ----------
OPERATING EXPENSES:
Sales and marketing 64,059 26,884
Research and development 23,705 11,220
General and administrative 9,035 3,818
----------- -----------
Total operating expenses 96,799 41,922
---------- ----------
INCOME FROM OPERATIONS 44,903 18,818
OTHER INCOME, net 4,380 2,063
----------- ---------
INCOME BEFORE INCOME TAXES 49,283 20,881
PROVISION FOR INCOME TAXES 17,003 7,413
---------- -----------
NET INCOME $ 32,280 $ 13,468
========= =========
NET INCOME PER SHARE (2):
BASIC $ 0.10 $ 0.05
=========== ===========
DILUTED $ 0.09 $ 0.04
=========== ===========
SHARES USED IN PER SHARE CALCULATION (2):
BASIC 313,559 292,376
========= =========
DILUTED 359,778 333,596
========= =========
(1) Net Income excludes in-process research and development and
amortization of intangible assets.
(2) Share and per share amounts have been adjusted to reflect the
two-for-one stock splits which were effective December 20, 1999 and
March 22, 2000.
NETWORK APPLIANCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)
Quarter Ended
-------------
July 28, July 30,
2000 1999
---- ----
NET SALES $231,159 $103,279
COST OF SALES 89,457 42,539
---------- ----------
GROSS MARGIN 141,702 60,740
--------- ----------
OPERATING EXPENSES:
Sales and marketing 64,059 26,884
Research and development 23,705 11,220
General and administrative 8,985 3,768
Amortization of intangible assets 666 50
In-process research and development 26,688 --
---------- -----------
Total operating expenses 124,103 41,922
--------- ----------
INCOME FROM OPERATIONS 17,599 18,818
OTHER INCOME, net 4,380 2,063
----------- -----------
INCOME BEFORE INCOME TAXES 21,979 20,881
PROVISION FOR INCOME TAXES 17,003 7,413
---------- -----------
NET INCOME $ 4,976 $ 13,468
========== =========
NET INCOME PER SHARE (1):
BASIC $ 0.02 $ 0.05
=========== ===========
DILUTED $ 0.01 $ 0.04
=========== ===========
SHARES USED IN PER SHARE CALCULATION (1):
BASIC 313,559 292,376
========= =========
DILUTED 359,778 333,596
========= =========
(1) Share and per share amounts have been adjusted to reflect the
two-for-one stock splits which were effective December 20, 1999 and
March 22, 2000.
CONTACT: Network Appliance, Inc.
Adam Trunkey, 408/822-6314 (Press)
atrunkey@netapp.com
Billie Fagenstrom, 408/822-6428 (Investors)
billief@netapp.com |
