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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): May 21, 2008
______________

NetApp, Inc.
(Exact name of Registrant as specified in its charter)

Delaware

0-27130

77-0307520

(State or other jurisdiction of

incorporation or organization)

(Commission

File Number)

(I.R.S. Employer

Identification Number)

495 East Java Drive
Sunnyvale, CA  94089

(Address of principal executive offices) (Zip Code)

(408) 822-6000
(Registrant’s telephone number, including area code)

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:

⃞ 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 May 21, 2008, NetApp, Inc. issued a press release announcing its earnings for the fourth quarter and fiscal year 2008. The press release is attached as an exhibit to this Form 8-K, and the information set forth therein is hereby incorporated by reference into this Item 2.02.

Item 9.01     Financial Statements and Exhibits

(d) Exhibits.

NetApp, Inc.’s May 21, 2008 press release is hereby furnished as Exhibit 99.1 to this Form 8-K in connection with the disclosures under Item 2.02 of this Form 8-K.


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, thereunto duly authorized.

 

 

May 21, 2008

By:

/s/ Steven Gomo

 

Steven J. Gomo

Chief Financial Officer

Index to Exhibits

Exhibit

 

Description

99.1

Press release of NetApp, Inc. issued on May 21, 2008.

Exhibit 99.1

NetApp Announces Results for Fourth Quarter and Fiscal Year 2008

Q4 Revenues $938 Million, Up 17% Year over Year;
Forecasts 23% – 27% Year over Year Revenue Growth for Q1 FY2009

SUNNYVALE, Calif.--(BUSINESS WIRE)--NetApp (NASDAQ:NTAP), today reported results for the fourth quarter of fiscal year 2008. Revenues for the fourth fiscal quarter were $938 million, an increase of 17% compared to revenues of $801 million for the same period a year ago and an increase of 6% compared to $884 million in the prior quarter.

For the fourth fiscal quarter, GAAP net income was $90 million, or $0.26 per share1 compared to GAAP net income of $90 million, or $0.23 per share for the same period in the prior year. Non-GAAP2 net income for the fourth fiscal quarter was $131 million, or $0.38 per share, compared to non-GAAP net income of $114 million, or $0.30 per share for the same period a year ago.

Revenues for fiscal year 2008 totaled $3.3 billion, an increase of 18% compared to revenues of $2.8 billion for fiscal year 2007. For fiscal year 2008, GAAP net income increased 4% to $310 million, or $0.86 per share, compared to GAAP net income of $298 million, or $0.77 per share for fiscal year 2007. Non-GAAP net income for fiscal year 2008 increased 6% to $455 million, or $1.26 per share, compared to non-GAAP net income of $431 million, or $1.11 per share for fiscal year 2007.

“NetApp posted a strong finish to the fiscal year, ending the fourth quarter with 17% growth in revenue and 23% growth in storage systems,” said Dan Warmenhoven, chairman and chief executive officer. “With solid performance from most areas around the world, customers continue to validate that NetApp provides them with comprehensive storage and data management solutions at the lowest cost of ownership in the industry.”

Outlook

Quarterly Highlights

In the fourth quarter of fiscal year 2008, NetApp launched a new brand identity that makes a bold statement about NetApp's strength in the marketplace and is designed to drive greater understanding of NetApp. NetApp also continued to help customers transform their data center architectures through higher efficiencies and asset utilization, greater power, space savings, and innovative data center design and data management techniques.

During the fourth quarter, NetApp unveiled the NetApp® Kilo Client, a large testing environment that is designed to exceed the most scalable and extreme performance conditions that most enterprises experience in their data centers.

Also during the quarter, NetApp introduced new products and capabilities as part of the NetApp Manageability Software Family. These new products (SnapManager® for Virtual Infrastructure, SnapManager Compatibility with VMware® Virtualization Software, and Provisioning Manager) enable customers to transform their data center architectures. NetApp is providing customers a proven storage platform for virtualized environments to achieve increased service levels, higher asset utilization, and greater data center power, space, and cooling efficiencies.

NetApp was recognized for its green initiatives with three separate awards for its innovative data center design and its advanced data management techniques to reduce power consumption. IDG's Computerworld, the "Voice of IT Management," selected NetApp as one of the top Green-IT Companies for 2008. IDG's InfoWorld, the leading integrated media brand for IT decision makers, named NetApp a winner in InfoWorld’s inaugural Green 15 awards. NetApp was also named a winner of the prestigious 2008 Green Enterprise IT Award from the Uptime Institute, a leading research-based think-tank and corporate advisory on the business and technology issues related to critical computing environment reliability and energy efficiency.

NetApp continued to gain momentum in the storage software market, growing the fastest among the top five leading storage software providers in 2007. According to IDC's Worldwide Quarterly Storage Software Tracker Q4 20073, NetApp grew more than three times faster than the storage software market in 2007 and gained share in each market segment in which it provides offerings. This marks the fifth consecutive year that NetApp grew faster than both the storage software market and the market leader.

During this quarter, Gartner, Inc., positioned NetApp in the "Leaders" quadrant for Enterprise NAS. In a recently released research note, "Magic Quadrant for Midrange and High-End NAS Solutions, 1H08,"4 Gartner asserts, "An enterprise NAS storage vendor in the Leaders quadrant has the market share, credibility, and marketing and sales capabilities needed to drive the acceptance of new technologies. It demonstrates understanding of market needs, is an innovator and thought leader, and has well-articulated plans that customers and prospects can use when designing their storage infrastructures and strategies."

NetApp unveiled a new brand identity and changed the official name of the company from Network Appliance to NetApp. The new brand identity was designed to achieve a broader and deeper awareness of the company and to communicate a consistent promise on a global basis to customers, partners, and employees. The NetApp brand is strongly grounded in NetApp's "create a model company" spirit which is based on the core values of the company, including trust and integrity, leadership, simplicity, teamwork and synergy, and going beyond.

Webcast and Conference Call Information

About NetApp

NetApp creates innovative storage and data management solutions that accelerate business breakthroughs and deliver outstanding cost efficiency. Discover NetApp’s passion for helping companies around the world go further, faster at 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 all of the statements under the Outlook section relating to our forecasted operating results and metrics for the first quarter fiscal year 2009 and for fiscal year 2009, and statements regarding the performance and breadth of our product and service offerings, relative to our competitors’ product and service offerings. These forward-looking statements involve risks and uncertainties, and actual results could vary. Important factors that could cause actual results to differ materially from those in the forward-looking statements include our ability to build non-deferred backlog to levels consistent with our past results and to increase our revenue over the next several quarters; general economic and industry conditions, including expenditure trends for storage-related products; risks associated with the anticipated growth in network storage and content delivery markets; our ability to deliver new product architectures and enterprise service offerings; competition risks, including our ability to design products and services that compete effectively from a price and performance perspective; risks with new product introductions; our reliance on a limited number of suppliers; our ability to accurately forecast demand for our products and successfully manage our relationships with our contract manufacturers; our ability to expand our direct sales operations and reseller distribution channels; our ability to develop, maintain, and strengthen our relationships and product offerings with strategic partners; risks associated with international operations; our ability to successfully acquire and integrate complementary businesses and technologies; foreign currency exchange rate fluctuations; and other important factors as described in NetApp reports and documents filed from time to time with the Securities and Exchange Commission, including the factors described under the sections captioned “Risk Factors” in our most recently submitted 10-K and 10-Q. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

1 Earnings per share is calculated using the diluted number of shares for all periods presented.

2 Non-GAAP results of operations exclude amortization of intangible assets, stock-based compensation expenses, acquisition-related retention costs, net gain on sale of investments, gain of sale on assets, restructuring charges/recoveries, prior acquisition-related costs, and the related effects on income taxes as well as certain discrete GAAP provisions for income tax matters recognized ratably for non-GAAP purposes.

3 IDC Worldwide Quarterly Storage Software Tracker Q4 2007.

4 Gartner Magic Quadrant for Midrange and High-End NAS Solutions, 1H08.

NetApp, the NetApp logo, Go further, faster, and SnapManager are trademarks or registered trademarks of NetApp, Inc. in the United States and other countries. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.

NetApp Usage of Non-GAAP Financials

The Company refers to the non-GAAP financial measures cited above in making operating decisions because they provide meaningful supplemental information regarding the Company's operational performance. These non-GAAP results of operations exclude amortization of intangible assets, stock-based compensation expenses, acquisition-related retention costs, net gain on sale of investments, gain on sale of assets, restructuring charges/recoveries, prior acquisition-related costs, and the related effects on income taxes as well as certain discrete GAAP provisions for income tax matters recognized ratably for non-GAAP purposes. We have excluded these items in order to enhance investors’ understanding of our ongoing operations. The use of these non-GAAP financial measures has material limitations because they should not be used to evaluate our company without reference to their corresponding GAAP financial measures. As such, we compensate for these material limitations by using these non-GAAP financial measures in conjunction with GAAP financial measures.

These non-GAAP financial measures facilitate management's internal comparisons to the Company's historical operating results and comparisons to competitors' operating results. We include these non-GAAP financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making, such as employee compensation planning. In addition, we have historically reported similar non-GAAP financial measures to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting at this time.

NETAPP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
  April 25, 2008   April 27, 2007
 
ASSETS
 
CURRENT ASSETS:
Cash and cash equivalents $ 936,479 $ 489,079
Short-term investments 227,911 819,702
Accounts receivable, net 582,110 548,249
Inventories 70,222 54,880
Prepaid expenses and other assets 120,561 99,840
Short-term restricted cash and investments 2,953 118,312
Short-term deferred income taxes   127,197   110,741
Total current assets 2,067,433 2,240,803
 
PROPERTY AND EQUIPMENT, net 693,792 603,523
 
GOODWILL 680,054 601,056
INTANGIBLE ASSETS, net 90,075 83,009
LONG-TERM INVESTMENTS AND RESTRICTED CASH 331,105 12,572
LONG-TERM DEFERRED INCOME TAXES AND OTHER ASSETS   283,801   117,515
$ 4,146,260 $ 3,658,478
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Current portion of long-term debt - $ 85,110
Accounts payable 178,233 144,112
Income taxes payable 6,245 53,371
Accrued compensation and related benefits 202,929 177,327
Other accrued liabilities 154,331 97,017
Deferred revenue   872,364   630,610
Total current liabilities   1,414,102   1,187,547
 
LONG-TERM DEBT 172,600 -
OTHER LONG-TERM OBLIGATIONS 146,058 9,487
LONG-TERM DEFERRED REVENUE   637,889   472,423
  2,370,649   1,669,457
 
STOCKHOLDERS' EQUITY   1,775,611   1,989,021
$ 4,146,260 $ 3,658,478
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except net income per share amounts)
(Unaudited)
 
 
  Quarters Ended   Years Ended
April 25, 2008   April 27, 2007

April 25, 2008

 

April 27, 2007

 
REVENUES:
Product $ 629,610 $ 588,121 $ 2,242,474 $ 2,085,898
Software entitlements and maintenance 136,268 99,206 486,896 341,258
Service   171,854     113,866     573,797     377,126  
Total revenues   937,732     801,193     3,303,167     2,804,282  
 
COST OF REVENUES:
Cost of product 256,860 230,491 911,434 815,928
Cost of software entitlements and maintenance 2,014 2,752 8,572 10,210
Cost of service   105,986     81,936     369,785     273,644  
Total cost of revenues   364,860     315,179     1,289,791     1,099,782  
GROSS MARGIN   572,872     486,014     2,013,376     1,704,500  
 
OPERATING EXPENSES:
Sales and marketing 296,457 259,599 1,075,588 895,813
Research and development 124,968 108,802 452,205 385,357
General and administrative 47,793 42,164 171,536 147,501
Restructuring charges (recoveries) 447 - 447 (74 )
Gain on sale of assets   -     -     -     (25,339 )
Total operating expenses   469,665     410,565     1,699,776     1,403,258  
 
INCOME FROM OPERATIONS 103,207 75,449 313,600 301,242
 
OTHER INCOME (EXPENSES), net:
Interest income 14,316 17,617 64,610 68,837
Interest expense (1,860 ) (265 ) (7,990 ) (11,642 )
Net gain (loss) on investments - (422 ) 12,614 (1,538 )
Other income (expense), net   (578 )   (362 )   (135 )   2,829  
Total other income, net   11,878     16,568     69,099     58,486  
 
INCOME BEFORE INCOME TAXES 115,085 92,017 382,699 359,728
 
PROVISION FOR INCOME TAXES   25,264     2,397     72,961     61,993  
 
NET INCOME $ 89,821   $ 89,620   $ 309,738   $ 297,735  
 
NET INCOME PER SHARE:
BASIC $ 0.26   $ 0.24   $ 0.88   $ 0.80  
 
DILUTED $ 0.26   $ 0.23   $ 0.86   $ 0.77  
 
SHARES USED IN PER SHARE CALCULATION:
BASIC   342,308     369,002     351,676     371,204  
 
DILUTED   348,492     385,151     361,090     388,454  
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
 
          Quarters Ended   Years Ended
April 25, 2008   April 27, 2007 April 25, 2008   April 27, 2007
Cash Flows from Operating Activities:
Net income $ 89,821 $ 89,620 $ 309,738 $ 297,735

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation 31,329 25,075 115,250 87,391
Amortization of intangible assets and patents 8,503 6,986 28,934 23,442
Stock-based compensation 34,886 38,354 147,964 163,033
Net (gain) loss on investments - 422 (12,614 ) 1,538
Gain on sale of assets - - - (25,339 )
Net loss on disposal of equipment 1,013 87 1,841 773
Allowance for doubtful accounts 463 742 818 928
Deferred income taxes (48,465 ) (57,506 ) (139,803 ) (145,989 )
Deferred rent 3,280 54 3,912 1,033
Income tax benefit from stock-based compensation 26,477 42,577 123,467 175,036
Excess tax benefit from stock-based compensation (73,556 ) (19,696 ) (120,663 ) (63,159 )
Changes in assets and liabilities:
Accounts receivable (114,249 ) (152,234 ) (27,741 ) (175,231 )
Inventories (10,198 ) 6,413 (15,382 ) 9,908
Prepaid expenses and other assets 59,746 (5,385 ) 79,222 (6,366 )
Accounts payable 53,897 32,143 20,032 36,589
Income taxes payable (6,286 ) 13,963 (47,300 ) 1,556
Accrued compensation and related benefits 23,776 26,742 18,754 43,612
Other accrued liabilities (855 ) 4,171 3,974 16,903
Other liabilities 49,722 340 117,469 (265 )
Deferred revenue   163,998     157,879     401,014     421,328  
Net cash provided by operating activities   293,302     210,747     1,008,886     864,456  
Cash Flows from Investing Activities:
 
Net redemptions of investments 126,823 55,086 335,541 187,857
Decrease (increase) in restricted cash 607 (43 ) (793 ) 290
Proceeds from sale of assets - - - 23,914
Proceeds from sales of nonmarketable securities - 1,039 898 2,813
Proceeds from sales of marketable securities - - 18,256 -
Purchases of property and equipment (63,433 ) (53,417 ) (188,280 ) (165,828 )
Purchases of nonmarketable securities - (250 ) (4,235 ) (1,583 )
Purchase of business, net of cash acquired   (99,601 )   -     (99,390 )   (131,241 )
Net cash (used in) provided by investing activities   (35,604 )   2,415     61,997     (83,778 )
Cash Flows from Financing Activities:

Proceeds from sale of common stock related to employee stock transactions

14,510 38,028 114,697 215,453
Tax withholding payments reimbursed by restricted stock (169 ) (580 ) (6,020 ) (5,272 )
Excess tax benefit from stock-based compensation 73,556 19,696 120,663 63,159
Change on revolving credit facility (77,400 ) - 172,354 -
Repayment of debt (28,790 ) (66,021 ) (85,110 ) (214,890 )
Repurchases of common stock   (59,453 )   (200,000 )   (903,704 )   (805,708 )
Net cash used in financing activities   (77,746 )   (208,877 )   (587,120 )   (747,258 )
 
Effect of Exchange Rate Changes on Cash (19,832 ) (5,422 ) (36,363 ) (5,597 )
 
Net Increase (decrease) in Cash and Cash Equivalents 160,120 (1,137 ) 447,400 27,823
Cash and Cash Equivalents:
Beginning of period   776,359     490,216     489,079     461,256  
End of period $ 936,479   $ 489,079   $ 936,479   $ 489,079  
 
NETAPP, INC.
SUPPLEMENTAL INFORMATION
(In thousands)
(Unaudited)
 
  QUARTER ENDED APRIL 25, 2008
             
Amortization of Intangible Assets  

Stock-based

Compensation Expenses

  Acquisition-Related Retention Cost   Prior Acquisition-related Costs   Restructuring Charges (Recoveries)   Gain on Sale of Assets   Net Gain on Investments   Total
 
Cost of product revenues $6,748 $870 - - - - - $7,618
Cost of service revenues - 2,653 - - - - - 2,653
Sales and marketing expense 1,259 15,971 - - - - - 17,230
Research and development expense - 10,309 - - - - - 10,309
General and administrative expense - 5,083 - - - - - 5,083
Restructuring charges (recoveries) - - - - 447 - - 447
Net gain on investments - - - - - - - -
                             
Effect on pre-tax income $8,007 $34,886 - - $447 - - $43,340
 
 
 
YEAR ENDED APRIL 25, 2008
 
Amortization of Intangible Assets  

Stock-based

Compensation Expenses

  Acquisition-Related Retention Cost   Prior Acquisition-related Costs   Restructuring Charges (Recoveries)   Gain on Sale of Assets   Net Gain on Investments   Total
 
Cost of product revenues $22,582 $3,384 - - - - - $25,966
Cost of service revenues - 10,442 - - - - - 10,442
Sales and marketing expense 4,170 65,399 3,086 - - - - 72,655
Research and development expense - 46,632 - - - - - 46,632

General and administrative expense

200 22,107 - 2,800 - - - 25,107
Restructuring charges (recoveries) - - - - 447 - - 447
Net gain on investments - - - - - - (12,614 ) (12,614 )
                             
Effect on pre-tax income $26,952 $147,964 $3,086 $2,800 $447 - ($12,614 ) $168,635
 
 
 
QUARTER ENDED APRIL 27, 2007
 
Amortization of Intangible Assets  

Stock-based

Compensation Expenses

  Acquisition-Related Retention Cost   Prior Acquisition-related Costs   Restructuring Charges (Recoveries) Gain on Sale of Assets Net Loss on Investments Total
 
Cost of product revenues $5,278 $1,059 - - - - - $6,337
Cost of service revenues - 2,431 - - - - - 2,431
Sales and marketing expense 974 16,955 1,162 - - - - 19,091
Research and development expense - 12,157 - - - - - 12,157
General and administrative expense 238 5,752 - - - - - 5,990
Restructuring charges (recoveries) - - - - - - - -
Gain on sale of assets - - - - - - - -
Net loss on investments - - - - - - 422 422
                       
Effect on pre-tax income $6,490 $38,354 $1,162 - - - $422 $46,428
 
 
 
YEAR ENDED APRIL 27, 2007
 
Amortization of Intangible Assets  

Stock-based

Compensation Expenses

  Acquisition-Related Retention Cost   Prior Acquisition-related Costs   Restructuring Charges (Recoveries)   Gain on Sale of Assets   Net Loss on Investments   Total
 
Cost of product revenues $17,580 $3,720 - - - - - $21,300
Cost of service revenues - 10,088 - - - - - 10,088
Sales and marketing expense 2,930 71,701 1,743 - - - - 76,374
Research and development expense - 51,323 - - - - - 51,323
General and administrative expense 950 26,201 - - - - - 27,151
Restructuring charges (recoveries) - - - - (74 ) - - (74 )
Gain on sale of assets - - - - - (25,339 ) - (25,339 )
Net loss on investments - - - - - - 1,538 1,538
                             
Effect on pre-tax income $21,460 $163,033 $1,743 - ($74 ) ($25,339 ) $1,538 $162,361
 
 
 
NETAPP, INC.
RECONCILIATION OF NON-GAAP AND GAAP
IN THE CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except net income per share amounts)
(Unaudited)
 
  Quarters Ended   Year Ended
April 25, 2008   April 27, 2007 April 25, 2008   April 27, 2007
 

SUMMARY RECONCILIATION OF NET INCOME

NET INCOME $ 89,821 $ 89,620 $ 309,738 $ 297,735
 
Adjustments:
Amortization of intangible assets 8,007 6,490 26,952 21,460
Stock-based compensation expenses 34,886 38,354 147,964 163,033
Acquisition-related retention cost - 1,162 3,086 1,743
Prior acquisition-related costs - - 2,800 -
Restructuring charges (recoveries) 447 - 447 (74 )
Gain on sale of assets - - - (25,339 )
Net (gain) loss on investments - 422 (12,614 ) 1,538
Tax effect on sale of investments - - 5,477 -

Discrete GAAP tax provision items ratably for non-GAAP purposes

- (3,024 ) - (2,767 )
Tax effect on sale of assets - (2,012 ) - 2,993
Discrete GAAP tax provision items 17,669 1,924 17,044 (571 )
Income tax effect (20,129 ) (18,719 ) (46,044 ) (29,028 )
       
NON-GAAP NET INCOME $ 130,701   $ 114,217   $ 454,850   $ 430,723  
 
 
NET INCOME PER SHARE $ 0.258 $ 0.233 $ 0.858 $ 0.766
 
Adjustments:
Amortization of intangible assets 0.023 0.017 0.075 0.055
Stock-based compensation expenses 0.100 0.100 0.410 0.420
Acquisition-related retention cost - 0.003 0.009 0.004
Prior acquisition-related costs - - 0.008 -
Restructuring charges (recoveries) 0.001 - 0.001 -
Gain on sale of assets - - - (0.065 )
Net (gain) loss on investments - 0.001 (0.035 ) 0.004
Tax effect on sale of investments - - 0.015 -

Discrete GAAP tax provision items ratably for non-GAAP purposes

- (0.008 ) - (0.007 )
Tax effect on sale of assets - (0.005 ) - 0.008
Discrete GAAP tax provision items 0.051 0.005 0.047 (0.001 )
Income tax effect (0.058 ) (0.049 ) (0.128 ) (0.075 )
       
NON-GAAP NET INCOME PER SHARE $ 0.375   $ 0.297   $ 1.260   $ 1.109  

NETAPP, INC.

RECONCILIATION OF NON GAAP GUIDANCE TO GAAP
EXPRESSED AS EARNINGS PER SHARE
FIRST QUARTER AND FULL YEAR 2009
(Unaudited)
 
  First Quarter   Fiscal Year
2009 2009
 
Non-GAAP Guidance $0.20 - $0.23 $1.40 - $1.46
 
 

Adjustments of Specific Items to Earnings Per Share for the First Quarter and Full Year 2009:

 
Amortization of intangible assets (0.02 ) (0.10 )
Stock based compensation expense ($0.10 - $0.11 ) (0.47 )
Income tax effect 0.02   0.09  
Total Adjustments ($0.10 - $0.11 ) (0.48 )
 
GAAP Guidance - Earnings Per Share $0.09 - $0.13 $0.92 - $0.98

CONTACT:
NetApp
Jodi Baumann, 408-822-3974 (Press)
Jodi.Baumann@netapp.com
Tara Dhillon, 408-822-6909 (Investors)
tara@netapp.com
Billie Fagenstrom, 408-822-6428 (Investors)
billief@netapp.com