NetApp: Fiscal 1Q11 Financial Results

NetApp reported results for the first quarter of fiscal year 2011, which ended July 30, 2010.

Revenues for the first fiscal quarter of 2011 totaled $1.14 billion compared to revenues of $838 million for the same period a year ago.

For the first fiscal quarter of fiscal year 2011, GAAP net income was $142 million or $0.38 per share1compared to GAAP net income of $52 million, or $0.15 per share for the same period in the prior year. Non-GAAP net income for the first fiscal quarter of fiscal year 2011 was $183 million, or $0.49 per share, compared to non-GAAP net income of $76 million, or $0.22 per share for the same period a year ago.

"With total revenue growth for the quarter of 36% and product revenue growth of 51% year over year, NetApp has begun our fiscal year with great momentum," said Tom Georgens, president and CEO. "The NetApp value proposition allows customers to implement more flexible and efficient storage infrastructures at a lower cost. Our results indicate we are achieving clear customer preference as IT organizations transform their data centers."
 
Outlook
NetApp estimates revenue for the second quarter of fiscal year 2011 to be in the range of $1.16 billion to $1.21 billion.
NetApp estimates share count for the second quarter of fiscal year 2011 to increase by about 6 million shares.
NetApp estimates that the second quarter of fiscal year 2011 GAAP earnings per share will be approximately $0.35 to $0.38 per share. NetApp estimates that the second quarter fiscal year 2011 non-GAAP earnings per share will be approximately $0.47 to $0.50 per share.
 
Business Highlights
In the first quarter of fiscal year 2011, NetApp expanded its strategic relationships with Microsoft and other partners to help customers and service providers make the transition to a cloud computing environment. NetApp, VMware, and Cisco also strengthened their trilateral collaboration by unveiling new solutions to increase data center efficiencies for customers. In addition, NetApp achieved several milestones and earned several awards during the quarter related to customer adoption of key technologies and its unique corporate culture. Key business highlights included the following:
 
NetApp Strengthens Relationship with Microsoft

• NetApp and Microsoft streamline data center management and accelerate cloud computing. NetApp announced closer integration with Microsoft technology to help joint customers and service providers more easily manage their virtualized environments and build internal and public clouds. This tighter integration will allow customers to make their data centers more efficient, agile, and dynamic.
• NetApp integrates with Microsoft toolkit to help service providers take small and medium-sized businesses (SMBs) to the cloud. While enterprise-class data protection has historically been too expensive for most SMBs, NetApp’s integration with the Microsoft Dynamic Data Center Toolkit for Hosters enables service providers to make data protection a reality for their SMB customers.
• NetApp unveils solutions for Microsoft SharePoint Server 2010 environments. NetApp SnapManager 6.0 for Microsoft SharePoint 2010 and other new storage solutions enable customers to make a smooth transition to SharePoint 2010. As storage demands continue to increase for SharePoint 2010, SnapManager 6.0 will help customers improve scalability, optimize storage resources, and reduce costs.

NetApp and Partners Enable Flexible IT

• NetApp, Cisco, and VMware unveil end-to-end Fibre Channel over Ethernet (FCoE) solution for the dynamic data center. These three partners delivered the industry’s first certified end-to-end FCoE solution for VMware virtual environments. With NetApp FCoE solutions and Cisco data center switches now validated to support VMware virtualized environments, this significant milestone helps customers achieve greater data center efficiencies and progress on their journey to the cloud.
• NetApp increases focus on service providers to help customers move to cloud computing. NetApp’s integration of service providers into its 2010–2011 NetApp Partner Program tightens the relationship between NetApp, its key service provider partners, and its value-added reseller partners, allowing them to more effectively work together to help customers make the transition to a cloud environment.

Milestones and Awards

• NetApp exceeds exabyte barrier with storage efficiency technologies. NetApp became the first storage vendor to achieve more than an exabyte of storage with deduped storage-system deployments. As a leader in primary storage deduplication, NetApp has deployed more than 87,000 deduped storage systems while more than 12,000 customers have benefitted from its portfolio of storage efficiency products.
• NetApp customers have purchased more than a petabyte of Flash Cache. Since its introduction in September 2009, NetApp Flash Cache has helped customers improve storage efficiency and performance. NetApp’s incorporating flash memory as intelligent cache in its unified storage systems allows NetApp customers to optimize performance while decreasing both capital and operating expenses.
• NetApp ranked #3 in best place to work in D.C. area list. The Washington Business Journal named NetApp #3 in the Large Company category (with nonlocal headquarters) on its Best Places to Work list in the D.C. area for 2010. The honor marks the second consecutive year that NetApp has finished in the top five in this ranking and is further testament to NetApp’s strong corporate culture.
• NetApp ranked #1 in Switzerland by the Great Place to Work Institute. NetApp was recognized as the Best Employer in Switzerland by the Great Place to Work Institute for 2010. NetApp now ranks in the top 20 in 10 different regions, including #7 in the United States.
• NetApp RTP data center earns EPA’s ENERGY STAR. The NetApp RTP dynamic data center became the first ever data center to earn the U.S. Environmental Protection Agency’s (EPA’s) prestigious ENERGY STAR for its superior energy efficiency. Achieving a near- perfect score of 99 out of 100, the unique RTP data center has reduced CO2 emissions for NetApp by approximately 95,000 tons per year, which is equivalent to removing 16,000 cars per year from the road.
• NetApp recognizes cutting-edge customers with NetApp Innovation Awards. NetApp held its sixth annual Innovation Awards to honor cutting-edge customers from around the world who leveraged NetApp solutions in an innovative way to improve their business. Winning organizations included Microsoft, Weta Digital, BT Global Services, WNS Global Services, T-Systems, and the Pennsylvania Office of the Attorney General.