NetApp: Fiscal 2Q20 Financial Results

NetApp, Inc. reported financial results for 2FQ20, which ended on October 25, 2019.

“Our 2FQ20 results reflect the strength of our business model and value of our innovation. We delivered gross margin, operating margin, and EPS all solidly ahead of our guidance ranges. We are delivering real business value to customers’ hybrid multicloud environments increasing our strategic relevance and enabling us to reach new buyers, address new workloads and expand our presence with existing customers,” said George Kurian, CEO. “We continue to be disciplined in our spending and have a strong financial model with growing gross margins and operating margins that enable us to return cash to shareholders and invest in the long-term health of our business.”

2FQ20 Financial Results
• Net Revenues: $1.37 billion, compared to $1.52 billion in 2FQ19
• Net Income: GAAP net income of $243 million, compared to GAAP net income of $241 million in 2FQ19; non-GAAP net income of $257 million, compared to non-GAAP net income of $280 million in 2FQ19
• Earnings per Share: GAAP net income per share of $1.03 compared to GAAP net income per share of $0.91 in 2FQ19; non-GAAP net income per share of $1.09, compared to non-GAAP net income per share of $1.06 in 2FQ19
• Cash, Cash Equivalents and Investments: $3.0 billion at the end of 2FQ19
• Cash Provided By (Used In) Operations: $(53) million, compared to $165 million in 2FQ19
• Share Repurchase and Dividend: Returned $611 million to shareholders through share repurchases and cash dividends

3FQ20 Outlook
Net revenues in the range of $1.390 billion to $1.540 billion
 
FY20 Outlook
Net revenues to decline approximately 8% Y/Y

Note: * In 1FQ20 the company made changes to the products and solutions contained in each of the Strategic and Mature product groupings. Strategic now includes All-flash FAS products, including all related add-on hardware and OS software, private cloud solutions, enterprise software license agreements and other optional add-on software products. Mature now includes Hybrid FAS products, including all related add-on hardware and OS software, OEM products, and branded E-Series. Prior to this change, Hybrid FAS and branded E-Series were included in Strategic, while all add-on hardware and OS software were included in Mature. For comparability, Strategic and Mature revenues presented for the prior year period have been recast based on the revised groupings.