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Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (8945)	8/14/2001 4:10:06 PM
From: SecularBull	Respond to of 10934

NETWORK APPLIANCE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) July 27, April 30, 2001 2001 ---- ---- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 239,287 $ 271,931 Short-term investments 129,378 92,094 Accounts receivable, net 155,166 186,956 Inventories 23,764 22,504 Prepaid expenses and other 28,096 25,745 Deferred income taxes 35,737 36,287 ------------ ------------ Total current assets 611,428 635,517 RESTRICTED CASH 199,983 193,747 PROPERTY AND EQUIPMENT, net 100,789 103,238 INTANGIBLE ASSETS, net 74,284 79,510 OTHER ASSETS 23,675 24,240 ------------ ------------ $1,010,159 $1,036,252 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 48,208 $ 64,892 Income taxes payable 16,050 21,844 Accrued compensation and related benefits 26,217 50,523 Other accrued liabilities 29,682 23,198 Deferred revenue 54,284 58,316 ------------ ------------ Total current liabilities 174,441 218,773 LONG TERM DEFERRED REVENUE 16,772 12,882 LONG TERM OBLIGATIONS 137 149 ------------ ------------ 191,350 231,804 SHAREHOLDERS' EQUITY 818,809 804,448 ------------ ------------ $1,010,159 $1,036,252 ============ ============ NETWORK APPLIANCE, INC. PRO FORMA (1) CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share data) (Unaudited) Quarter Ended ------------- July 27, July 28, 2001 2000 ---- ---- NET SALES $200,426 $231,159 COST OF SALES 88,077 89,457 ------------ ------------ GROSS MARGIN 112,349 141,702 ------------ ------------ OPERATING EXPENSES: Sales and marketing 71,642 63,818 Research and development 29,083 23,623 General and administrative 10,262 8,879 ------------ ------------ Total operating expenses 110,987 96,320 ------------ ------------ INCOME FROM OPERATIONS 1,362 45,382 OTHER INCOME, net 5,494 4,380 ------------ ------------ INCOME BEFORE INCOME TAXES 6,856 49,762 PROVISION FOR INCOME TAXES 2,125 17,168 ------------ ------------ NET INCOME $ 4,731 $ 32,594 ============ ============ NET INCOME PER SHARE (1): BASIC $ 0.01 $ 0.10 ============ ============ DILUTED $ 0.01 $ 0.09 ============ ============ SHARES USED IN PER SHARE CALCULATION: BASIC 329,336 313,559 ============ ============ DILUTED 349,667 359,778 ============ ============ (1) Net income excludes in-process research and development, amortization of intangible assets, stock compensation expense and the related income tax effect. NETWORK APPLIANCE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) (Unaudited) Quarter Ended ------------- July 27, July 28, 2001 2000 ---- ---- NET SALES $200,426 $231,159 COST OF SALES 88,077 89,457 ------------ ------------ GROSS MARGIN 112,349 141,702 ------------ ------------ OPERATING EXPENSES: Sales and marketing 71,642 63,818 Research and development 29,083 23,623 General and administrative 10,262 8,879 Amortization of intangible assets 5,226 666 In-process research and development -- 26,688 Stock compensation 2,699 429 ------------ ------------ Total operating expenses 118,912 124,103 ------------ ------------ INCOME (LOSS) FROM OPERATIONS (6,563) 17,599 OTHER INCOME, net 5,494 4,380 ------------ ------------ INCOME (LOSS) BEFORE INCOME TAXES (1,069) 21,979 PROVISION (BENEFIT) FOR INCOME TAXES (556) 17,003 ------------ ------------ NET INCOME (LOSS) $ (513) $ 4,976 ============ ============ NET INCOME (LOSS) PER SHARE: BASIC $ (0.00) $ 0.02 ============ ============ DILUTED $ (0.00) $ 0.01 ============ ============ SHARES USED IN PER SHARE CALCULATION: BASIC 329,336 313,559 ============ ============ DILUTED 329,336 359,778 ============ ============

To: SecularBull who wrote (8945)	8/14/2001 8:37:47 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 10934

CC notes: at a bottom, but not at an upturn. We get a sense from our customers that they are locking their budgets in, and won't be cutting it in the way they did for the first half of this year. for Q2, expect 0-5% revenue growth, with internet down, enterprise sales up; proforma EPS .01-.02 at the end of the quarter, we saw an uptick in demand, but we aren't ready to call this the beginning of a trend. IT budgets have stopped going down; internet and technology customers are weakest, others are mixed; expect a slow recovery gross margins 56%, flat with 4Q, due to cost-cutting; GM more likely to moderate than go up; we've seen our competitors, especially EMC, give big price discounts to be competitive; we are not going to lose anything on price, and our sales force understands that; I see price pressures continuing customer mix, by % of revenues: 20% internet 25% total for 4 targetted enterprise verticals (financial services, oil and gas, manufacturers, telcos) Europe weak, Asia solid (not sure if I got this right) BTB slightly above 1:1 this quarter We like our current strategy, we don't intend to "push terabytes in order to sell software later"

To: SecularBull who wrote (8945)	8/15/2001 12:18:22 PM
From: JakeStraw	Read Replies (2) \| Respond to of 10934

RESEARCH ALERT-Goldman cuts Network Appliance view biz.yahoo.com NEW YORK, Aug 15 (Reuters) - Goldman Sachs lowered its earnings estimates for Network Appliance Inc. (NasdaqNM:NTAP - news) on Wednesday after the computer storage maker reported a sharp drop in quarterly operating income. In a research note, Goldman said it cut its 2001 earnings estimate to 7 cents per share from 9 cents and the 2002 estimate to 15 cents per share from 31 cents. ``We are making substantial cuts in our NTAP estimates given a large first-quarter revenue miss and our assumption that NTAP's forward revenue improvements will mostly be tied to an economic recovery, which we expect to be shallow and gradual,'' the note said. ``At the same time, NTAP's customer mix continues to show considerable progress, although this is only partly reflected in current results, with this offering potential for eventual revenue upside.''

To: SecularBull who wrote (8945)	8/15/2001 9:41:09 PM
From: Crystal ball	Respond to of 10934

NTAP the key point is VISIBILITY, Warmenhoven said on CNBC this morning that the bottom is behind us, that deferred or delayed orders were now again actually ordered, orders are picking up and this means of course that NTAP will soon return to prior GROWTH and EARNINGS, Warmenhoven even said that he believes that STORAGE WILL LEAD THE TECHS out of the earnings recession into the recovery. This is just what I have been saying, and I was very pleased to see that NTAP met earnings estimates as predicted. NTAP will completely recover, that is the good news I think we can take from this quarterly report, and apply it to other tech stocks soon also. I am, Truly your$, -Crystal Ball