NetApp have reported results for the second fiscal quarter of 2009. Revenues for the second fiscal quarter of 2009 were $912 million, an increase of 15% compared to revenues of $792 million for the same period a year ago.
For the second fiscal quarter of 2009, GAAP net income was $49 million, or $0.15 per share (1) compared to GAAP net income of $84 million, or $0.23 per share for the same period in the prior year. Non-GAAP (2) net income for the second fiscal quarter of 2009 was $92 million, or $0.28 per share, compared to non-GAAP net income of $116 million, or $0.32 per share for the same period a year ago.
Revenues for the first six months of the current fiscal year totaled $1.78 billion, compared to revenues of $1.48 billion for the first six months of the prior year, an increase of 20% year over year.
GAAP net income for the first six months of the current fiscal year totaled $87 million, or $0.26 per share, compared to GAAP net income of $118 million, or $0.32 per share for the first six months of the prior fiscal year.
Non-GAAP net income for the first six months of the current fiscal year totaled $168 million, or $0.50 per share, compared to non-GAAP net income of $192 million, or $0.52 per share for the first six months of the prior fiscal year.
Given the reduced visibility caused by the recent changes in the macroeconomic environment, NetApp will not be providing formal revenue guidance for the third quarter of fiscal year 2009.
NetApp estimates non-GAAP gross margins for the third quarter of fiscal year 2009 to be substantially the same level as reported in the second quarter of fiscal year 2009.
NetApp estimates non-GAAP operating expenses for the third quarter of fiscal year 2009 to be roughly flat from the operating expenses reported in the second quarter of fiscal year 2009.
In the second quarter of fiscal year 2009, NetApp introduced new solutions that continue to help customers transform their data centre architectures through higher efficiencies and asset utilisation, greater power and space savings and innovative data management techniques. NetApp also received many industry awards for quality, innovation and service in the storage market.
NetApp have launched a global programme that offers customers the assurance (3) that they will use 50% less storage in their virtual environments with NetApp compared to traditional storage. NetApp want to assure customers who choose NetApp and leverage its storage efficiency technologies, that they will reduce their overall storage usage while improving performance.
During the second quarter, NetApp announced that they will offer native Fibre Channel over Ethernet (FCoE) SAN storage solutions. FCoE support extends NetApp's unified storage architecture, enabling customers to address changing business needs and opportunities with flexible data access across all protocols.
NetApp also announced the availability of deduplication on NetApp Virtual Tape Library (VTL) systems, enabling customers to lower the disk capacity required to back up any storage system, including EMC and HP, up to 95%.(4)
During the quarter, NetApp unveiled the NetApp GetSuccessful Partner Enablement Programme to help partners maximise strategic opportunities and distinguish themselves with their customers. The programme is a new benefit of NetApp’s current VIP Partner Programme and complements the Authorised Professional Service Provider and the Virtualization Specialisation programmes announced earlier this year.
During the quarter, NetApp received the following awards:
- Diogenes Labs' Storage Magazine Quality Awards for the Enterprise Arrays category (Storage)
- 2008 InformationWeek 500 (InformationWeek)
- Penton Media's Windows IT Pro 2008 Community Choice Awards (Windows IT Pro)
- Service Management Achievement Award for Executive Stewardship (Aberdeen Group)
- 2008 Rising Star Award (Global Technology Distribution Council), Learning in Practice Awards (Chief Learning Officer magazine)
- "Best Places to Work" in Research Triangle Park 2008 (Triangle Business Journal)
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, prior acquisition related costs, net gain or loss on investments, 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 The description of the guarantee programme in this press release is a summary and does not purport to be complete.
4 Based on NetApp internal testing, October 2008.