Network Appliance Announces Results for First Quarter Fiscal Year 2002
SUNNYVALE, Calif.--Aug. 14, 2001--Network Appliance, Inc. (Nasdaq:NTAP - news) today announced results for the first quarter of fiscal year 2002. Revenues for the first fiscal quarter were $200.4 million, compared to revenues of $231.2 million for the same period a year ago.
Pro forma net income for the quarter was $4.7 million, or $0.01 per share, compared with $32.6 million, or $0.09 per share for the same period a year ago. For the first quarter, on an as-reported basis with adjustments for acquisitions and stock-based compensation, the net loss for the quarter was $0.5 million, or break-even per share, compared with $5.0 million, or $0.01 per share for the same period in the prior year.
Network Appliance also announced a workforce reduction affecting approximately 200 employees worldwide. The action is required to properly align and manage the business commensurate with current revenue levels of the company. The company anticipates it will take a restructuring charge in the range of $6 million to $8 million during the second quarter.
``Network Appliance is successfully building new enterprise business opportunities and penetrating key vertical markets including energy, financial services, and telecommunications services. We are pleased with the adoption of our Center-to-Edge(TM) platform by customers, as it becomes the IT infrastructure blueprint for their global data management and content delivery strategy,'' said Dan Warmenhoven, CEO of Network Appliance. ``As we have in the past, Network Appliance will continue to conservatively manage the business in response to the slowdown in our customer's IT spending patterns in this challenging global economic environment.''
Quarterly Highlights
During the quarter, Network Appliance made significant progress on its business and marketing initiatives, reflecting further success in its strategy to become the market leader in enterprise network storage and content delivery.
Our Center-to-Edge global data management platform allows companies to achieve significant total cost of ownership (TCO) reductions and return on investment (ROI) advantages for their businesses.
This quarter, key customers who chose NetApp® solutions in the enterprise included TotalFinaElf USA, NASA, Globix, Churchill Insurance (U.K), and General Bandwidth.
To strengthen strategic partnerships with applications vendors, NetApp demonstrated the first Direct Access File System (DAFS) solution with Oracle at Oracle Open World in Germany. The company collaborated with Cisco on the first in a series of reference white papers for building and deploying high availability storage network infrastructures. NetApp also received ``Runs with Lotus Domino'' certification from Lotus Development Corp.
In fiscal Q1, Network Appliance announced new products that deliver higher performance and simplify management of NetApp systems. NetApp shipped DataFabric(TM) Manager 1.0, a software tool that enables storage management of multiple NetApp filers and NetCache® appliances in enterprise environments. NetApp also released DiskShelf 14, a new Fibre Channel disk shelf that supports a single-shelf capacity of one terabyte, resulting in a 50% footprint reduction from our previous generation solution.
Additional introductions during the quarter included Fibre Channel (FC) SAN backup solutions and capabilities for NetApp filers, highlighted by the joint announcement of eight certified FC SAN backup configurations from industry-leading vendors including Brocade, BakBone, CommVault, Legato, Quadratec, Quantum/ATL, StorageTek, and Syncsort.
Finally, NetApp released SnapManager(TM) 1.1 for Microsoft® Exchange 5.5 environments and SecureShare® Quota Manager 2.0.
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 represent the diluted number of shares for all periods presented.
The company will host a conference call on Tuesday, August 14 at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time, to discuss its results. The conference call will be broadcast live via the Internet from the investor relations section of Network Appliance's Web site at www.netapp.com. The conference call will also be available live in a listen-only format at 1 (800) 640-7899 in the United States, and 1 (212) 346-0297 outside the United States. A replay will be available by dialing 1 (800) 633-8284, replay code 19473780.
About Network Appliance
Network Appliance, Inc., a leader in network file 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(TM) product portfolio utilizes the company's innovative data access software, known as the Data ONTAP(TM) operating system, as well as standards-compliant hardware. It also offers multiprotocol support and transparent integration for UNIX® and Windows® environments.
NetApp, NetCache, and SecureShare are registered trademarks and Network Appliance, Center-to-Edge, DataFabric, SnapManager, and Data ONTAP are trademarks of Network Appliance, Inc. in the U.S. and other countries. UNIX is a registered trademark of The Open Group. Windows is a registered trademark of Microsoft Corporation. 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 Center-to-Edge adoption, economic trends, expected revenue and earnings per share for the 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, customer acceptance of product architectures, 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. |
