NetApp Reports Third Quarter Fiscal Year 2019 Results

NetApp reported financial results for the third quarter of fiscal year 2019, which ended January 25, 2019.

“Although I am disappointed that revenue came in at the low-end of our guidance range, we continue to demonstrate discipline in how we manage the business. We are playing into the big market transitions from a position of strength and are focused on execution to maximize our opportunity in an uncertain macroeconomic environment,” said George Kurian, chief executive officer. “Our flash, hybrid cloud infrastructure, and AI solutions are serving as pillars of customers’ new architectures and we are seeing adoption of our cloud offerings as part of our customers’ foundation for moving applications and data to the cloud. We have conviction in our strategy to drive long-term growth.”

Third Quarter Fiscal Year 2019 Financial Results

• Net Revenues: $1.56 billion, increased 2% year-over-year from $1.54 billion* in the third quarter of fiscal 2018
• Net Income: GAAP net income of $249 million, compared to GAAP net loss of $479 million*1 in the third quarter of fiscal 2018; non-GAAP net income2 of $305 million, compared to non-GAAP net income of $289 million* in the third quarter of fiscal 2018
• Earnings per Share: GAAP net income per share3 of $0.98 compared to GAAP net loss per share4 of $1.79*1 in the third quarter of fiscal 2018; non-GAAP net income per share of $1.20, compared to non-GAAP net income per share of $1.05* in the third quarter of fiscal 2018
• Cash, Cash Equivalents and Investments: $4.0 billion at the end of the third quarter of fiscal 2019
• Cash from Operations: $451 million, compared to $420 million in the third quarter of fiscal 2018
• Share Repurchase and Dividend: Returned $649 million to shareholders through share repurchases and cash dividends

In the first quarter of fiscal 2019, NetApp adopted Revenue from Contracts with Customers (ASC 606) using the full retrospective method of adoption. Accordingly, NetApp’s condensed consolidated balance sheet as of April 27, 2018, condensed consolidated statements of operations and cash flows for all fiscal 2018 periods presented, and all related financial statement metrics included herein, have been restated to conform to the new rules.