NetApp
NetApp, Inc. (Form: 8-K, Received: 02/15/2017 16:26:31)

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):   February 15, 2017

 

 

 

NetApp, Inc.

(Exact name of Registrant as specified in its charter)

 

Delaware

 

0-27130

 

77-0307520

(State or other jurisdiction of

incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

495 East Java Drive

Sunnyvale, CA 94089

(Address of principal executive offices) (Zip Code)

 

(408) 822-6000

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

  


 


 

 

Item 2.02     Results of Operations and Financial Condition.

 

On February 15, 2017, NetApp, Inc. (“NetApp” or the “Company”) issued a press release reporting financial results for the third quarter ended January 27, 2017. The press release is furnished herewith as Exhibit 99.1, and is incorporated herein by reference. 

The information contained herein and in the accompanying exhibits shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing. The information in this report, including the exhibits hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

 

 

 

Item 9.01     Financial Statements and Exhibits.

 

  (d) Exhibits.

 

Exhibit No.

Description

 

 

99.1

Press release, dated February 15, 2017, reporting earnings for the fiscal quarter ended January 27, 2017.

 

 

 

 

 


 

 


 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

  NETAPP, INC.

 

  (Registrant)

 

 

 

February 15, 2017

By:

/s/ Matthew K. Fawcett

 

 

Matthew K. Fawcett

 

 

Senior Vice President, General Counsel and Corporate Secretary

 

 

 

 

 


 

 


 

 

 

Exhibit Index

 

Exhibit No.

Description

99.1

Press release, dated February 15, 2017, reporting earnings for the fiscal quarter ended January 27, 2017

 

 

 

 

 

Exhibit 99.1

 

 

NETAPP REPORTS THIRD QUARTER FISCAL YEAR 2017 RESULTS

 

Net Revenues of $1.40 Billion; Up 5% Quarter-over-Quarter and 1% Year-over-Year;

GAAP EPS of $0.52 and Non-GAAP EPS of $0.82

 

All-flash array annualized net revenue run rate almost $1.40 billion, up 160% year-over-year.

Nearly 300 petabytes of flash shipped.

Clustered Data ONTAP™ managing 50% of installed base capacity.

$336 million returned to shareholders in share repurchases and a cash dividend.

 

Sunnyvale, Calif.—February 15, 2017— NetApp (NASDAQ: NTAP) today reported financial results for the third quarter of fiscal year 2017, ended January 27, 2017.

 

Third Quarter Financial Results

Net revenues for the third quarter of fiscal year 2017 were $1.40 billion. GAAP net income for the third quarter of fiscal year 2017 was $146 million, or $0.52 per share, 1 compared to GAAP net income of $153 million, or $0.52 per share, for the comparable period of the prior year. Non-GAAP net income for the third quarter of fiscal year 2017 was $231 million, or $0.82 per share, 2 compared to non-GAAP net income of $206 million, or $0.70 per share, for the comparable period of the prior year .

 

Cash, Cash Equivalents and Investments

NetApp ended the third quarter of fiscal year 2017 with $4.6 billion in total cash, cash equivalents and investments. During the third quarter of fiscal year 2017, the Company generated $235 million in cash from operations and returned $336 million to shareholders through share repurchases and a cash dividend.

 

The Company announced the next cash dividend of $0.19 per share. The quarterly dividend will be paid on April 26, 2017 to shareholders of record as of the close of business on April 7, 2017.

 


“Q3 marked another quarter of strong execution by NetApp,” said George Kurian, chief executive officer. “The transformation of NetApp is yielding solid results and has changed the trajectory of our business. With our industry-leading portfolio of solutions and Data Fabric strategy, NetApp is well positioned to lead in the next era of IT.”

 

Q4 Fiscal Year 2017 Outlook

The Company provided the following financial guidance for the fourth quarter of fiscal year 2017:

Net revenues are expected to be in the range of $1.365 billion to $1.515 billion.

GAAP earnings per share is expected to be in the range of $0.60 to $0.65 per share.

Non-GAAP earnings per share is expected to be in the range of $0.79 to $0.84 per share.

 

Business Highlights

NetApp Expands Cloud Data Management and All-Flash Offerings 

 

-

NetApp Improves Control, Simplifies Movement of Data in the Hybrid Cloud. New Data Fabric solutions and services speed data access and visibility, enhance data protection and security, and help customers extract value from their data from anywhere in the hybrid cloud.

 

-

NetApp Expands All-Flash Portfolio with New Entry-Level Array. The NetApp TM All Flash FAS (AFF) A200 expands the market opportunity for the world’s fastest and most efficient cloud-connected enterprise storage portfolio. The entry-level system delivers enterprise-grade flash performance at a very attractive price point and is ideal for midsize businesses that are making the move to all flash.

Customers Team with NetApp to Accelerate Performance and Responsiveness

 

-

Carrenza Supports Rapidly Evolving Customer Application and Infrastructure Demands with NetApp SolidFire. Global cloud service company Carrenza leverages NetApp SolidFire TM all-flash storage to enable customers to scale and accelerate business performance, increase infrastructure agility and responsiveness, and reduce storage maintenance time and administration effort.

 

-

Cologne Broadcasting Center ( CBC) Upgrades TV Production and Delivery Services with NetApp. A new production storage and disaster recovery infrastructure has improved


 

CBC broadcast service offerings throughout Germany with solutions deli vered by NetApp and partner Pixi t Media.

 

-

Wirestorm Delivers DevOps in the Cloud with NetApp ONTAP Cloud for Amazon Web Services (AWS). To accelerate and automate its DevOps process, Wirestorm deployed NetApp ONTAP TM Cloud. This Data Fabric solution delivers everything that the company needs for DevOps in the cloud—without a single physical array—enabling Wirestorm to use only laptops. The framework that it created with NetApp has enabled Wirestorm to automate so efficiently that it can implement an end-to-end solution all the way to AWS in less than a minute.

 

Webcast and Conference Call Information

NetApp will host a conference call to discuss these results today at 2:30 p.m. Pacific Time. To access the live webcast of this event, visit the NetApp Investor Relations website at investors.netapp.com . In addition, this press release, historical supplemental data tables, and other information related to the call will be posted on the Investor Relations website. An audio replay will also be available on the website after 4:30 p.m. Pacific Time today.

 

About NetApp

Leading organizations worldwide count on NetApp for software, systems and services to manage and store data. We help customers capitalize on the value of their data in the hybrid cloud through our Data Fabric strategy, data management expertise, portfolio and ecosystem. To learn more, visit  www.netapp.com .

 

“Safe Harbor” Statement Under U.S. Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, all of the statements made under the Q4 Fiscal Year 2017 Outlook section and statements made about the trajectory of our business and our ability to lead in the digital era . All of these forward-looking statements involve risk and uncertainty. Actual results may differ materially from these statements for a variety of reasons, including, without limitation, general global political, macroeconomic and market conditions, changes in U.S. government spending, revenue


seasonality and matters specific to our business, such as our ability to understand, and effectively respond to changes affecting our market environment, product, technologies and customer requirements, including the impact of the cloud, customer demand for and acceptance of our products and services, our ability to reduce our cost structure, streamline the business and improve efficiency, our ability to effectively integrate the SolidFire acquisition, and our ability to manage our gross profit margins. These and other equally important factors are described in reports and documents we file from time to time with the Securities and Exchange Commission, including the factors described under the section titled “Risk Factors” in our most recently submitted Annual Report on Form 10-K. We disclaim any obligation to update information contained in this press release whether as a result of new information, future events, or otherwise.

###

NetApp and the NetApp logo and the marks listed at http://www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.

 

1 GAAP earnings per share is calculated using the diluted number of shares.

2 Non-GAAP net income excludes, when applicable, (a) amortization of intangible assets, (b) stock-based compensation expenses, (c) acquisition-related expenses, (d) restructuring and other charges, (e) asset impairments, (f) gains/losses on the sale of properties, and (g) our GAAP tax provision, but includes a non-GAAP tax provision based upon our projected annual non-GAAP effective tax rate for the first three quarters of the fiscal year and an actual non-GAAP tax provision for the fourth quarter of the fiscal year. NetApp makes additional adjustments to the non-GAAP tax provision for certain tax matters as described below. Non-GAAP earnings per share is calculated using the diluted number of shares for all periods presented. A detailed reconciliation of our non-GAAP to GAAP results can be found at http://investors.netapp.com . NetApp’s management uses these non-GAAP measures in making operating decisions because it believes the measurements provide meaningful supplemental information regarding NetApp’s ongoing operational performance.

 

 


NetApp Usage of Non-GAAP Financial Information

To supplement NetApp’s condensed consolidated financial statement information presented in accordance with generally accepted accounting principles in the United States (GAAP), NetApp provides investors with certain non-GAAP measures, including, but not limited to, historical non-GAAP operating results, non-GAAP net income, non-GAAP effective tax rate, and free cash flow, and historical and projected non-GAAP earnings per diluted share.

NetApp believes that the presentation of non-GAAP net income, non-GAAP effective tax rates, and non-GAAP earnings per share data when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations. NetApp believes that the presentation of free cash flow, which it defines as the net cash provided by operating activities less cash used to acquire property and equipment, to be a liquidity measure that provides useful information to management and investors because it reflects cash that can be used to, among other things, invest in its business, make strategic acquisitions, repurchase common stock, and pay dividends on its common stock, after deducting capital expenditures. As free cash flow is not a measure of liquidity calculated in accordance with GAAP, free cash flow should be considered in addition to, but not as a substitute for, the analysis provided in the statement of cash flows.

NetApp’s management uses these non-GAAP measures in making operating decisions because it believes the measurements provide meaningful supplemental information regarding NetApp’s ongoing operational performance. These non-GAAP financial measures are used to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors’ operating results and (3) allow greater transparency with respect to information used by management in financial and operational decision making. In addition, these non-GAAP financial measures are used to measure company performance for the purposes of determining employee incentive plan compensation. 

NetApp excludes the following items from its non-GAAP measures when applicable:

A. Amortization of intangible assets. NetApp records amortization of intangible assets that were acquired in connection with its business combinations. The amortization of intangible assets varies depending on the level of acquisition activity. Management finds it useful to


exclude these charges to assess the appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods and in measuring operational performance.

B. Stock-based compensation expenses. NetApp excludes stock-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses. While management views stock-based compensation as a key element of our employee retention and long-term incentives, we do not view it as an expense to be used in evaluating operational performance in any given period.

C. Acquisition-related expenses. NetApp excludes acquisition-related expenses, including (a) due diligence, legal and other one-time integration charges and (b) write down of assets acquired that NetApp does not intend to use in its ongoing business, from its non-GAAP measures, primarily because they are not related to our ongoing business or cost base and, therefore, cannot be relied upon for future planning and forecasting.

D. Restructuring and other charges. These charges include restructuring charges that are incurred based on the particular facts and circumstances of restructuring decisions, including employment and contractual settlement terms, and other related charges, and can vary in size and frequency. These items are not ordinarily included in our annual operating plan and related budget due to the unpredictability of the timing and size of these events. We therefore exclude them in our assessment of operational performance. 

E. Asset impairments. These are non-cash charges to write down assets when there is an indication that the asset has become impaired. Management finds it useful to exclude these non-cash charges due to the unpredictability of these events in its assessment of operational performance.

F. Gains/losses on the sale of properties. These are gains/losses from the sale of our properties. Management believes that these transactions do not reflect the results of our underlying, on-going business and, therefore, cannot be relied upon for future planning or forecasting.

 G. Income tax adjustments . NetApp’s non-GAAP tax provision is based upon a projected annual non-GAAP effective tax rate for the first three quarters of the fiscal year and an actual non-GAAP tax provision for the fourth quarter of the fiscal year. The non-GAAP tax provision also excludes, when applicable, (a) tax charges or benefits in the current period that relate to one or more prior fiscal periods that are a result of events such as changes in tax legislation,


authoritative guidance, income tax audit settlements and/or court decisions, (b) tax charges or benefits that are attributable to unusual or non-recurring book and/or tax accounting method changes, (c) tax charges that are a result of a non-routine foreign cash repatriation, (d) tax charges or benefits that are a result of infrequent restructuring of the Company’s tax structure, (e) tax charges or benefits that are a result of a change in valuation allowance, and (f) tax charges resulting from the integration of intellectual properties from acquisitions. Management believes that the use of non-GAAP tax provisions provides a more meaningful measure of the Company’s operational performance.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. NetApp believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. NetApp management compensates for these limitations by analyzing current and projected results on a GAAP basis as well as a non-GAAP basis. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States. The non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, GAAP financial measures.

 

 

 

 

 


 

NETAPP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 

 

 

January 27,

2017

 

 

April 29,

2016

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash, cash equivalents and investments

 

$

4,639

 

 

$

5,303

 

Accounts receivable

 

 

605

 

 

 

813

 

Inventories

 

 

125

 

 

 

98

 

Other current assets

 

 

277

 

 

 

234

 

Total current assets

 

 

5,646

 

 

 

6,448

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

892

 

 

 

937

 

Goodwill and purchased intangible assets, net

 

 

1,821

 

 

 

1,856

 

Other non-current assets

 

 

696

 

 

 

796

 

Total assets

 

$

9,055

 

 

$

10,037

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

258

 

 

$

254

 

Accrued expenses

 

 

747

 

 

 

765

 

Commercial paper notes

 

 

392

 

 

 

 

Short-term loan

 

 

 

 

 

849

 

Current portion of long-term debt

 

 

748

 

 

 

 

Short-term deferred revenue and financed unearned services revenue

 

 

1,699

 

 

 

1,794

 

Total current liabilities

 

 

3,844

 

 

 

3,662

 

Long-term debt

 

 

744

 

 

 

1,490

 

Other long-term liabilities

 

 

238

 

 

 

413

 

Long-term deferred revenue and financed unearned services revenue

 

 

1,535

 

 

 

1,591

 

Total liabilities

 

 

6,361

 

 

 

7,156

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

2,694

 

 

 

2,881

 

Total liabilities and stockholders' equity

 

$

9,055

 

 

$

10,037

 

 

 

 


 

NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)

(Unaudited)

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

January 27,

2017

 

 

January 29,

2016

 

 

January 27,

2017

 

 

January 29,

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

784

 

 

$

750

 

 

$

2,154

 

 

$

2,229

 

Software maintenance

 

 

240

 

 

 

234

 

 

 

723

 

 

 

715

 

Hardware maintenance and other services

 

 

380

 

 

 

402

 

 

 

1,161

 

 

 

1,222

 

Net revenues

 

 

1,404

 

 

 

1,386

 

 

 

4,038

 

 

 

4,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product

 

 

435

 

 

 

381

 

 

 

1,170

 

 

 

1,134

 

Cost of software maintenance

 

 

7

 

 

 

9

 

 

 

22

 

 

 

28

 

Cost of hardware maintenance and other services

 

 

111

 

 

 

141

 

 

 

369

 

 

 

449

 

Total cost of revenues

 

 

553

 

 

 

531

 

 

 

1,561

 

 

 

1,611

 

Gross profit

 

 

851

 

 

 

855

 

 

 

2,477

 

 

 

2,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

381

 

 

 

418

 

 

 

1,228

 

 

 

1,358

 

Research and development

 

 

181

 

 

 

200

 

 

 

588

 

 

 

660

 

General and administrative

 

 

64

 

 

 

70

 

 

 

201

 

 

 

223

 

Restructuring and other charges

 

 

52

 

 

 

 

 

 

52

 

 

 

28

 

Acquisition-related expense

 

 

 

 

 

2

 

 

 

 

 

 

2

 

Gain on sale of properties

 

 

(10

)

 

 

 

 

 

(10

)

 

 

 

Total operating expenses

 

 

668

 

 

 

690

 

 

 

2,059

 

 

 

2,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

183

 

 

 

165

 

 

 

418

 

 

 

284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

 

 

 

(2

)

 

 

(1

)

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

183

 

 

 

163

 

 

 

417

 

 

 

285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

37

 

 

 

10

 

 

 

98

 

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

146

 

 

$

153

 

 

$

319

 

 

$

237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.53

 

 

$

0.52

 

 

$

1.15

 

 

$

0.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

0.52

 

 

$

0.52

 

 

$

1.13

 

 

$

0.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in net income per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

274

 

 

 

293

 

 

 

277

 

 

 

297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

281

 

 

 

296

 

 

 

282

 

 

 

300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

$

0.190

 

 

$

0.180

 

 

$

0.570

 

 

$

0.540

 

 

 

 


 

NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

January 27,

2017

 

 

January 29,

2016

 

 

January 27,

2017

 

 

January 29,

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

146

 

 

$

153

 

 

$

319

 

 

$

237

 

Adjustments to reconcile net income to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

56

 

 

 

66

 

 

 

173

 

 

 

202

 

Stock-based compensation

 

 

46

 

 

 

63

 

 

 

149

 

 

 

199

 

Gain on sale of properties

 

 

(10

)

 

 

 

 

 

(10

)

 

 

 

Other items, net

 

 

52

 

 

 

(22

)

 

 

65

 

 

 

(74

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(56

)

 

 

1

 

 

 

208

 

 

 

190

 

Inventories

 

 

(28

)

 

 

23

 

 

 

(27

)

 

 

44

 

Accounts payable

 

 

26

 

 

 

(53

)

 

 

13

 

 

 

(113

)

Accrued expenses

 

 

17

 

 

 

10

 

 

 

(121

)

 

 

(78

)

Deferred revenue and financed unearned services

  revenue

 

 

31

 

 

 

85

 

 

 

(148

)

 

 

(52

)

Changes in other operating assets and liabilities, net

 

 

(45

)

 

 

29

 

 

 

 

 

 

74

 

Net cash provided by operating activities

 

 

235

 

 

 

355

 

 

 

621

 

 

 

629

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemptions (purchases) of investments, net

 

 

(188

)

 

 

91

 

 

 

2

 

 

 

879

 

Purchases of property and equipment

 

 

(45

)

 

 

(41

)

 

 

(137

)

 

 

(125

)

Other investing activities, net

 

 

3

 

 

 

(1

)

 

 

2

 

 

 

(1

)

Net cash provided by (used in) investing activities

 

 

(230

)

 

 

49

 

 

 

(133

)

 

 

753

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under employee stock award

  plans

 

 

45

 

 

 

45

 

 

 

70

 

 

 

70

 

Repurchase of common stock

 

 

(284

)

 

 

(85

)

 

 

(576

)

 

 

(698

)

Changes in commercial paper notes, net

 

 

392

 

 

 

 

 

 

392

 

 

 

 

Repayment of short-term loan

 

 

 

 

 

 

 

 

(850

)

 

 

 

Dividends paid

 

 

(52

)

 

 

(52

)

 

 

(157

)

 

 

(159

)

Other financing activities, net

 

 

(4

)

 

 

(4

)

 

 

(7

)

 

 

(3

)

Net cash provided by (used in) financing activities

 

 

97

 

 

 

(96

)

 

 

(1,128

)

 

 

(790

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(2

)

 

 

(11

)

 

 

(15

)

 

 

(19

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

100

 

 

 

297

 

 

 

(655

)

 

 

573

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

 

2,113

 

 

 

2,198

 

 

 

2,868

 

 

 

1,922

 

End of period

 

$

2,213

 

 

$

2,495

 

 

$

2,213

 

 

$

2,495

 

 

 

 

 

 


 

NETAPP, INC.

 

SUPPLEMENTAL DATA

 

(In millions except net income per share, percentages, DSO, DIO, DPO, CCC and Inventory Turns)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 FY'17

 

 

Q2 FY'17

 

 

Q3 FY'16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Product (1)

 

$

784

 

 

$

710

 

 

$

750

 

Strategic

 

$

512

 

 

$

452

 

 

$

419

 

Mature

 

$

272

 

 

$

258

 

 

$

331

 

Software Maintenance

 

$

240

 

 

$

242

 

 

$

234

 

Hardware Maintenance and Other Services:

 

$

380

 

 

$

388

 

 

$

402

 

Hardware Maintenance Support Contracts

 

$

313

 

 

$

316

 

 

$

326

 

Professional and Other Services

 

$

67

 

 

$

72

 

 

$

76

 

Net Revenues

 

$

1,404

 

 

$

1,340

 

 

$

1,386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Geographic Mix

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Q3

FY'17

Revenue

 

 

% of Q2

FY'17

Revenue

 

 

% of Q3

FY'16

Revenue

 

Americas

 

 

55

%

 

 

57

%

 

 

54

%

Americas Commercial

 

 

44

%

 

 

42

%

 

 

44

%

U.S. Public Sector

 

 

10

%

 

 

16

%

 

 

10

%

EMEA

 

 

33

%

 

 

30

%

 

 

33

%

Asia Pacific

 

 

13

%

 

 

13

%

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pathways Mix

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Q3

FY'17

Revenue

 

 

% of Q2

FY'17

Revenue

 

 

% of Q3

FY'16

Revenue

 

Direct

 

 

21

%

 

 

22

%

 

 

22

%

Indirect

 

 

79

%

 

 

78

%

 

 

78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Gross Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 FY'17

 

 

Q2 FY'17

 

 

Q3 FY'16

 

Non-GAAP Gross Margin

 

 

61.5

%

 

 

62.7

%

 

 

63.1

%

Product

 

 

45.7

%

 

 

48.2

%

 

 

51.1

%

Software Maintenance

 

 

97.1

%

 

 

97.1

%

 

 

96.2

%

Hardware Maintenance and Other Services

 

 

71.6

%

 

 

67.8

%

 

 

66.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Income from Operations, Income before Income Taxes & Effective Tax Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 FY'17

 

 

Q2 FY'17

 

 

Q3 FY'16

 

Non-GAAP Income from Operations

 

$

284

 

 

$

204

 

 

$

244

 

% of Net Revenues

 

 

20.2

%

 

 

15.2

%

 

 

17.6

%

Non-GAAP Income before Income Taxes

 

$

284

 

 

$

204

 

 

$

242

 

Non-GAAP Effective Tax Rate

 

 

18.6

%

 

 

17.3

%

 

 

14.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Non-GAAP Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 FY'17

 

 

Q2 FY'17

 

 

Q3 FY'16

 

Non-GAAP Net Income

 

$

231

 

 

$

169

 

 

$

206

 

Non-GAAP Weighted Average Common Shares Outstanding, Diluted

 

 

281

 

 

 

284

 

 

 

296

 

Non-GAAP Income per Share, Diluted

 

$

0.82

 

 

$

0.60

 

 

$

0.70