Network Appliance Revenues Up 72% in First Fiscal Quarter
SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 18, 1998--Network Appliance, Inc. (NASDAQ:NTAP) today reported revenues of $57.4 million for the fiscal first quarter ended July 31, 1998, an increase of 72% compared to revenues of $33.4 million for the same period last year.
Net income for the quarter was $7.1 million, or $.19 per share, compared to net income of $4.2 million, or $.12 per share, for the same period a year ago.
Revenues increased on a sequential basis by 14% over the $50.4 million reported in the fourth quarter of fiscal 1998 and net income was up 12.6% from the $6.3 million or $.17 per share reported in the fourth quarter of fiscal 1998. All earnings-per-share amounts represent diluted earnings per share as defined within Statement of Financial Accounting Standards No. 128. Earnings per share and the number of shares used in the per-share calculation for all periods presented reflect the two-for-one stock split that became effective December 18, 1997.
Commenting on the quarter, President and Chief Executive Officer Dan Warmenhoven said, "We are pleased with results of the quarter just ended during which we added many new accounts in North America and Europe. Customers have responded enthusiastically to new features such as the fibre-channel support in our latest offerings, particularly those products aimed at large data centers. Such technology enhances the expandability and ease-of-use of our higher-end servers in enterprise environments.
"We are also pleased this week to announce the release of our latest line of file servers, the F700 family of filers, which represents our fifth generation of advanced file-serving architecture. The F700 significantly enhances the price-performance value proposition of our product offerings."
Except for the historical information, the discussion in this press release contains certain forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those discussed here. Factors that could cause or contribute to such differences include those discussed in the sub-section entitled "Other Factors Affecting the Company" in the Company's Annual Report on Form 10-K.
Network Appliance develops and markets file servers known as filers that deliver shared file service for UNIX, Windows and the World Wide Web. These devices deliver fast, simple, reliable, and cost-effective access to data stored in the network. 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 filers are based on the Company's innovative data access software known as Data ONTAP and standards-compliant hardware. More information is available at www.netapp.com. -0- *T
Network Appliance Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
Quarter Ended
July 31, 1998 July 25, 1997
(Unaudited)
NET SALES $ 57,375 $ 33,420 COST OF SALES 23,239 13,570 GROSS MARGIN 34,136 19,850
OPERATING EXPENSES: Sales and marketing 14,935 8,493
Research and development 6,081 3,415
General and administrative 1,885 1,356
Total operating expenses 22,901 13,264
INCOME FROM OPERATIONS 11,235 6,586
OTHER INCOME, net 121 168
INCOME BEFORE INCOME TAXES 11,356 6,754
PROVISION FOR INCOME TAXES 4,259 2,533
NET INCOME $ 7,097 $ 4,221
NET INCOME PER SHARE (1): BASIC $ 0.21 $ 0.13
DILUTED $ 0.19 $ 0.12
SHARES USED IN PER SHARE CALCULATION(1): BASIC 33,548 31,884
DILUTED 37,271 35,139
(1) Share and per share amounts have been adjusted to reflect the two-for-one stock split that was effective December 18, 1997 and the adoption of SFAS 128.
Network Appliance Inc.
Condensed Consolidated Balance Sheets
(In thousands)
July 31, 1998 April 24, 1998
(Unaudited)
ASSETS
CURRENT ASSETS: Cash and cash equivalents $ 31,476 $ 37,315
Short-term investments 14,930 10,800
Accounts receivable, net 35,960 34,313
Inventories 9,732 8,707
Prepaid expenses and other 1,928 2,524
Deferred taxes 5,497 5,280
Total current assets 99,523 98,939
PROPERTY AND EQUIPMENT, net 12,661 12,217 DEPOSITS 9,500 - OTHER ASSETS 4,389 4,580
$ 126,073 $ 115,736
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES: Accounts payable $ 7,538 $ 10,041
Income taxes payable 3,485 1,782
Accrued compensation
and related benefits 5,259 8,485
Other accrued liabilities 4,327 4,201
Deferred revenue 5,788 4,799
Total current liabilities 26,397 29,308
LONG-TERM OBLIGATIONS 157 163
SHAREHOLDERS' EQUITY 99,519 86,265
$ 126,073 $ 115,736 *T
CONTACT:
Network Appliance
Jeffry R. Allen, 408/367-3212
Vice President, Finance and Operations
jallen@netapp.com
or
Stan DeVaughn, 408/367-3203
Director, Corporate Communications
stand@netapp.com |
