(2¢) Network Appliance Announces Results for Fourth Fiscal Quarter and Achieves $1 Billion in Revenue for Fiscal Year 2001
SUNNYVALE, Calif.--(BUSINESS WIRE)--May 15, 2001--Network Appliance (Nasdaq:NTAP - news) today announced results for the fourth quarter and fiscal year 2001. Revenues for the fourth fiscal quarter were $225.8 million, an increase of 13% compared to revenues of $200.0 million for the same period a year ago.
Pro forma net income for the quarter was $7.9 million, or $0.02 per share, compared with $24.9 million, or $0.07 per share for the same period a year ago. Actual net income for the quarter was $0.5 million, or break-even per share, compared with $24.5 million or $0.07 per share for the same period a year ago.
Revenues for the fiscal year 2001 totaled $1.0 billion, an increase of 74% compared to revenue of $579.3 million for the fiscal year 2000. For fiscal year 2001, pro forma net income increased 56% to $116.4 million, or $0.32 per share, compared to pro forma net income of $74.8 million, or $0.22 per share for the fiscal year 2000. Pro forma net income per share for the fiscal year 2001 increased approximately 49% from the fiscal year 2000. Actual net income for the fiscal year 2001 was $74.8 million, or $0.21 per share, compared with $73.8 million, or $0.21 for the same period a year ago.
``Reaching the $1 billion annual revenue mark is an important accomplishment for Network Appliance. It is a validation of our appliance business strategy, innovative technology and our vision for the revolution of storage networking. While the fourth quarter was challenging, Network Appliance is strategically positioned for consistent, long term future growth,'' said Dan Warmenhoven, CEO of Network Appliance. ``As economic conditions improve, we believe information storage will lead the rebound in IT spending. We are poised to take advantage of the strong growth opportunities in both the enterprise storage and content delivery markets. Because our high performance enterprise solutions have been proven to lower a customer's total cost of ownership by up to 75%, they can help customers derive greater value and improve manageability of their storage infrastructure.''
Quarterly Highlights
In addition to reaching the $1 billion revenue mark, Network Appliance continued to lead the adoption of next generation network storage and content delivery solutions for key enterprise business applications. During the quarter, NetApp established new and expanded global partnerships with Fujitsu Siemens, IBM Global Services, Intel, OpenWave, Oracle, Rational, RealNetworks and SAP.
NetApp completed the expansion of its worldwide customer support infrastructure with the launch of its Asia-Pacific facility in Singapore and added Support Center Practices (SCP) certification of U.S. and European support operations.
This quarter, Gartner Group Dataquest reported that Network Appliance continued as the No. 1 market leader in Network Attached Storage (NAS) in 2000. In another research report from Gartner Group, Network Appliance jumped to No. 6 in revenues of storage management software in the first year of eligibility.
Product highlights of the fourth quarter featured new NetApp filer and NetCache content delivery solutions designed to span an IT enterprise, and optimize the global access and delivery of information from data centers and regional offices, to remote locations anywhere.
The growing storage and content delivery systems launched in Q4 include the F820, F820c and F85 filers, and the C3100 content delivery network (CDN) hardware platform. NetApp also released new software: including DataONTAP(TM) 6.1, the company's flagship micro-kernel operating system; NetCache(TM) 5.1, for deploying enterprise CDNs; and Content Director(TM) 2.1, with expanded support for multiprotocol streaming media and single-point management of CDNs.
``NetApp expects to lead the next global market shift to a more sophisticated network storage and content delivery model that allows customers to deploy the most scalable IT architectures for their business,'' said Dan Warmenhoven. ``We're making solid progress with the acceptance of our NetApp center-to-edge(TM) data management and content delivery systems for Fortune 2000 enterprise business applications.''
Pro forma results exclude the impact of in-process research and development, amortization of intangible assets, stock compensation expense and the related income tax effect.
Earnings per share represents the diluted number of shares for all periods presented.
About Network Appliance
Network Appliance, Inc., a leader in network 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 Lycos, Yahoo!, Citicorp Securities, Siemens, Lockheed, Cisco, Motorola, and Texas Instruments have deployed NetApp 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 product portfolio utilizes the company's innovative data access software, known as the Data ONTAP operating system, as well as standards-compliant hardware. It also offers multiprotocol support and transparent integration for UNIX® and Windows® environments.
NetApp is a registered trademark in the U.S. and Network Appliance, Data ONTAP, NetCache, ContentDirector and center-to-edge 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'' Statement under U.S. Private Securities Litigation Reform Act of 1995
The statements regarding expected revenue and earnings per share for the fourth quarter of fiscal year 2001 and fiscal year 2002 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, 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. |
