– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
Net revenues for the fourth quarter grew 8% year-over-year to $1.68 billion; Net revenues for fiscal year 2022 grew 10% to $6.32 billion
Q4 billings1 were $2.02 billion, an increase of 16% year-over-year
Q4 product revenue grew 6% year-over-year to $894 million, the fifth consecutive quarter of year-over-year growth
NetApp™ Public Cloud annualized revenue run rate (ARR)2 increased 68% year-over-year to $505 million
All-flash array annualized net revenue run rate3 increased 12% year-over-year to $3.2 billion
$1.05 billion returned to shareholders in fiscal year 2022, 86% of cash from operations; 106% of free cash flow
SAN JOSE, Calif.--(BUSINESS WIRE)--NetApp (NASDAQ: NTAP) today reported financial results for the fourth quarter and fiscal year 2022, which ended on April 29, 2022.
“Our solid fourth quarter results cap off a strong year. We made sustained progress against our strategic goals: gaining share in enterprise storage, expanding our public cloud business, and, most notably, delivering record levels of gross margin dollars, operating income, and earnings per share,” said George Kurian, chief executive officer. “The strong fundamentals of our business, including our alignment to customer priorities, strong balance sheet, and prudent operational management put NetApp in a position of strength as we scale our Public Cloud services while continuing to drive growth in our Hybrid Cloud solutions.”
Fourth quarter of fiscal year 2022 financial results
Fiscal year 2022 financial results
First quarter of fiscal year 2023 financial outlook
The Company provided the following financial guidance for the first quarter of fiscal year 2023:
Net revenues are expected to be in the range of: |
$1.475 billion to $1.625 billion |
|
|
GAAP |
Non-GAAP |
Earnings per share is expected to be in the range of: |
$0.72 - $0.82 |
$1.05 - $1.15 |
Full fiscal year 2023 financial outlook
The Company provided the following financial guidance for the full fiscal year 2023:
Net revenues are expected to grow in the range of: |
6% to 8% |
|
Public Cloud ARR is expected to exit the fiscal year in the range of: |
$780 million to $820 million |
|
|
GAAP |
Non-GAAP |
Consolidated gross margins are expected to be in the range of: |
65% - 66% |
66% - 67% |
Operating margins are expected to be in the range of: |
18% - 19% |
23% - 24% |
Effective tax rate is expected to be in the range of: |
24% - 25% |
21% - 22% |
Earnings per share is expected to be in the range of: |
$3.96 - $4.16 |
$5.40 - $5.60 |
The next cash dividend of $0.50 per share is to be paid on July 27, 2022, to shareholders of record as of the close of business on July 8, 2022.
Fourth quarter of fiscal year 2022 business highlights
Leading product innovation
NetApp Awards and Recognition
Webcast and conference call information
NetApp will host a conference call to discuss these results today at 2:30 p.m. Pacific Time. To access the live webcast of this event, go to the NetApp Investor Relations website at investors.netapp.com. In addition, this press release, historical supplemental data tables, and other information related to the call will be posted on the Investor Relations website. An audio replay will be available on the website after 4:30 p.m. Pacific Time today.
“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, but are not limited to, all of the statements made in the First Quarter of Fiscal Year 2023 Financial Outlook section and Full Fiscal Year 2023 Financial Outlook section and statements about the strong fundamentals of our business and resulting position of strength, and our ability to scale our Public Cloud services while driving growth in our Hybrid Cloud solutions. Actual results may differ materially from these statements for a variety of reasons, including, without limitation, customer demand for and acceptance of our products and services, our ability to successfully execute on our data fabric strategy to generate profitable growth and stockholder return, our ability to successfully execute new business models, general global political, macroeconomic and market conditions, changes in U.S. government spending, revenue seasonality, our ability to manage our gross profit margins, the impact of the COVID-19 pandemic on our business operations, including supply chain disruptions, our financial performance and results of operations, and our ability to expand our total available market and grow our portfolio of products. These and other equally important factors are described in reports and documents we file from time to time with the Securities and Exchange Commission, including the factors described under the section titled “Risk Factors” in our most recently submitted reports on Forms 10-Q and 10-K. We disclaim any obligation to update information contained in this press release whether as a result of new information, future events, or otherwise.
NetApp, the NetApp logo, and the marks listed at http://www.netapp.com/TM are trademarks of NetApp, Inc. All other marks are the property of their respective owners.
1Refer to the NetApp Usage of Non-GAAP Financial Information section below for an explanation of billings. 2Public Cloud annualized revenue run rate (ARR) is calculated as the annualized value of all Public Cloud customer commitments with the assumption that any commitment expiring during the next 12 months will be renewed with its existing terms. 3All-flash array annualized net revenue run rate is determined by products and services revenue for the current quarter, multiplied by 4. 4Non-GAAP net income excludes, when applicable, (a) amortization of intangible assets, (b) stock-based compensation expenses, (c) litigation settlements, (d) acquisition-related expenses, (e) restructuring charges, (f) asset impairments, (g) gains/losses on the sale or derecognition of assets, (h) gains/losses on the sale of investments in equity securities, (i) debt extinguishment costs, and (j) our GAAP tax provision, but includes a non-GAAP tax provision based upon our projected annual non-GAAP effective tax rate for the first three quarters of the fiscal year and an actual non-GAAP tax provision for the fourth quarter of the fiscal year. NetApp makes additional adjustments to the non-GAAP tax provision for certain tax matters as described below. A detailed reconciliation of our non-GAAP to GAAP results can be found at http://investors.netapp.com. NetApp’s management uses these non-GAAP measures in making operating decisions because it believes that the measurements provide meaningful supplemental information regarding NetApp’s ongoing operational performance. 5GAAP net income per share and non-GAAP net income per share are calculated using the diluted number of shares. 6Newsweek, “America’s Most Trustworthy Companies, 2022,” Nancy Cooper, May 9, 2022. America's Most Trustworthy Companies 2022 - All Winners (newsweek.com). 7GigaOm, “GigaOm Radar for Cloud Platforms for Hybrid Integration and Automation,” Enrico Signoretti, Max Mortillaro, Arjan Timmerman, April 4, 2022. GigaOm Radar for High-Performance Object Storage - Gigaom. 8Business Intelligence Group, “Winners of the 2022 Excellence in Customer Service Awards,” April 12, 2022. Here are the 85 Names Leading the Way in Customer Service in 2022 — Business Intelligence Group (bintelligence.com). 9Business Intelligence Group, “Honoring Achievements in Artificial Intelligence,” March 22, 2022. 6 People, 26 Companies, and 65 Products Awarded for Excellence in Artificial Intelligence — Business Intelligence Group (bintelligence.com). 10CRN’s Storage 100 list, “2022 Storage 100: Who’s Got Your Backup, 2022,” Joseph F. Kovar, April 11, 2022. 2022 Storage 100: Who’s Got Your Backup? (crn.com).
NetApp usage of non-GAAP financial information
To supplement NetApp’s condensed consolidated financial statement information presented in accordance with generally accepted accounting principles in the United States (GAAP), NetApp provides investors with certain non-GAAP measures, including, but not limited to, historical non-GAAP operating results, non-GAAP net income, non-GAAP effective tax rate, free cash flow, billings, and historical and projected non-GAAP earnings per diluted share. NetApp also presents the hardware and software components of our GAAP product revenues. Because our revenue recognition policy under GAAP defines a configured storage system, inclusive of the operating system software essential to its functionality, as a single performance obligation, hardware and software components of our product revenues are considered non-GAAP measures. The hardware and software components of our product revenues are derived from an estimated fair value allocation of the transaction price of our contracts with customers, down to the level of the product hardware and software components. This allocation is primarily based on the contractual prices at which NetApp has historically billed customers for such respective components.
NetApp believes that the presentation of non-GAAP net income, non-GAAP effective tax rates, and non-GAAP earnings per share data, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations.
NetApp believes that the presentation of free cash flow, which it defines as the net cash provided by operating activities less cash used to acquire property and equipment, to be a liquidity measure that provides useful information to management and investors because it reflects cash that can be used to, among other things, invest in its business, make strategic acquisitions, repurchase common stock, and pay dividends on its common stock. As free cash flow is not a measure of liquidity calculated in accordance with GAAP, free cash flow should be considered in addition to, but not as a substitute for, the analysis provided in the statement of cash flows.
NetApp believes that the presentation of the software and hardware components of our product revenues is meaningful to investors and management as it illustrates the significance of the Company’s software and provides improved visibility into the value created by our software innovation and R&D investment.
NetApp approximates billings by adding net revenues as reported on our Condensed Consolidated Statements of Operations for the period to the change in total deferred revenue and financed unearned services revenue as reported on our Condensed Consolidated Statements of Cash Flows for the same period. Billings is a performance measure that NetApp believes provides useful information to management and investors because it approximates the amounts under purchase orders received by us during a given period that have been billed.
NetApp’s management uses these non-GAAP measures in making operating decisions because it believes the measurements provide meaningful supplemental information regarding NetApp’s ongoing operational performance. These non-GAAP financial measures are used to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors’ operating results and (3) allow greater transparency with respect to information used by management in financial and operational decision making.
NetApp excludes the following items from its non-GAAP measures when applicable:
A. Amortization of intangible assets. NetApp records amortization of intangible assets that were acquired in connection with its business combinations. The amortization of intangible assets varies depending on the level of acquisition activity. Management finds it useful to exclude these charges to assess the appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods and in measuring operational performance.
B. Stock-based compensation expenses. NetApp excludes stock-based compensation expenses from its non-GAAP measures primarily because the amount can fluctuate based on variables unrelated to the performance of the underlying business. While management views stock-based compensation as a key element of our employee retention and long-term incentives, we do not view it as an expense to be used in evaluating operational performance in any given period.
C. Litigation settlements. NetApp may periodically incur charges or benefits related to litigation settlements. NetApp excludes these charges and benefits, when significant, because it does not believe they are reflective of ongoing business and operating results.
D. Acquisition-related expenses. NetApp excludes acquisition-related expenses, including (a) due diligence, legal and other one-time integration charges and (b) write down of assets acquired that NetApp does not intend to use in its ongoing business, from its non-GAAP measures, primarily because they are not related to our ongoing business or cost base and, therefore, are less useful for future planning and forecasting.
E. Restructuring charges. These charges consist of restructuring charges that are incurred based on the particular facts and circumstances of restructuring decisions, including employment and contractual settlement terms, and other related charges, and can vary in size and frequency. We therefore exclude them in our assessment of operational performance.
F. Asset impairments. These are non-cash charges to write down assets when there is an indication that the asset has become impaired. Management finds it useful to exclude these non-cash charges due to the unpredictability of these events in its assessment of operational performance.
G. Gains/losses on the sale or derecognition of assets. These are gains/losses from the sale of our properties and other transactions in which we transfer control of assets to a fourth party. Management believes that these transactions do not reflect the results of our underlying, on-going business and, therefore, are less useful for future planning and forecasting.
H. Gains/losses on the sale of investments in equity securities. These are gains/losses from the sale of our investment in certain equity securities. Typically, such investments are sold as a result of a change in control of the underlying businesses. Management believes that these transactions do not reflect the results of our underlying, on-going business and, therefore, are less useful for future planning and forecasting.
I. Debt extinguishment costs. NetApp excludes certain non-recurring expenses incurred as a result of the early extinguishment of debt. Management believes such nonrecurring costs do not reflect the results of its underlying, on-going business and, therefore, are less useful for future planning and forecasting.
J. Income tax adjustments. NetApp’s non-GAAP tax provision is based upon a projected annual non-GAAP effective tax rate for the first three quarters of the fiscal year and an actual non-GAAP tax provision for the fourth quarter of the fiscal year. The non-GAAP tax provision also excludes, when applicable, (a) tax charges or benefits in the current period that relate to one or more prior fiscal periods that are a result of events such as changes in tax legislation, authoritative guidance, income tax audit settlements, statute lapses and/or court decisions, (b) tax charges or benefits that are attributable to unusual or non-recurring book and/or tax accounting method changes, (c) tax charges that are a result of a non-routine foreign cash repatriation, (d) tax charges or benefits that are a result of infrequent restructuring of the Company’s tax structure, (e) tax charges or benefits that are a result of a change in valuation allowance, and (f) tax charges resulting from the integration of intellectual property from acquisitions. Management believes that the use of non-GAAP tax provisions provides a more meaningful measure of the Company’s operational performance.
These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. NetApp believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. NetApp management compensates for these limitations by analyzing current and projected results on a GAAP basis as well as a non-GAAP basis. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States. The non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, GAAP financial measures.
In a world full of generalists, NetApp is a specialist. We’re focused on one thing, helping your business get the most out of your data. NetApp brings the enterprise-grade data services you rely on into the cloud, and the simple flexibility of cloud into the data center. Our industry-leading solutions work across diverse customer environments and the world’s biggest public clouds. As a cloud-led, data-centric software company, only NetApp can help build your unique data fabric, simplify and connect your cloud, and securely deliver the right data, services, and applications to the right people—anytime, anywhere.
NETAPP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) |
||||||||
|
|
April 29,
|
|
|
April 30,
|
|
||
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash, cash equivalents and investments |
|
$ |
4,134 |
|
|
$ |
4,596 |
|
Accounts receivable |
|
|
1,230 |
|
|
|
945 |
|
Inventories |
|
|
204 |
|
|
|
114 |
|
Other current assets |
|
|
377 |
|
|
|
346 |
|
Total current assets |
|
|
5,945 |
|
|
|
6,001 |
|
|
|
|
|
|
|
|
||
Property and equipment, net |
|
|
602 |
|
|
|
525 |
|
Goodwill and purchased intangible assets, net |
|
|
2,488 |
|
|
|
2,140 |
|
Other non-current assets |
|
|
991 |
|
|
|
694 |
|
Total assets |
|
$ |
10,026 |
|
|
$ |
9,360 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
607 |
|
|
$ |
420 |
|
Accrued expenses |
|
|
925 |
|
|
|
970 |
|
Current portion of long-term debt |
|
|
250 |
|
|
|
— |
|
Short-term deferred revenue and financed unearned services revenue |
|
|
2,171 |
|
|
|
2,062 |
|
Total current liabilities |
|
|
3,953 |
|
|
|
3,452 |
|
Long-term debt |
|
|
2,386 |
|
|
|
2,632 |
|
Other long-term liabilities |
|
|
788 |
|
|
|
650 |
|
Long-term deferred revenue and financed unearned services revenue |
|
|
2,061 |
|
|
|
1,941 |
|
Total liabilities |
|
|
9,188 |
|
|
|
8,675 |
|
|
|
|
|
|
|
|
||
Stockholders' equity |
|
|
838 |
|
|
|
685 |
|
Total liabilities and stockholders' equity |
|
$ |
10,026 |
|
|
$ |
9,360 |
|
NETAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
April 29, 2022 |
|
|
April 30, 2021 |
|
|
April 29, 2022 |
|
|
April 30, 2021 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product |
|
$ |
894 |
|
|
$ |
840 |
|
|
$ |
3,284 |
|
|
$ |
2,991 |
|
Services |
|
|
786 |
|
|
|
715 |
|
|
|
3,034 |
|
|
|
2,753 |
|
Net revenues |
|
|
1,680 |
|
|
|
1,555 |
|
|
|
6,318 |
|
|
|
5,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of product |
|
|
446 |
|
|
|
387 |
|
|
|
1,554 |
|
|
|
1,432 |
|
Cost of services |
|
|
145 |
|
|
|
133 |
|
|
|
544 |
|
|
|
497 |
|
Total cost of revenues |
|
|
591 |
|
|
|
520 |
|
|
|
2,098 |
|
|
|
1,929 |
|
Gross profit |
|
|
1,089 |
|
|
|
1,035 |
|
|
|
4,220 |
|
|
|
3,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing |
|
|
480 |
|
|
|
447 |
|
|
|
1,857 |
|
|
|
1,744 |
|
Research and development |
|
|
235 |
|
|
|
221 |
|
|
|
881 |
|
|
|
881 |
|
General and administrative |
|
|
72 |
|
|
|
66 |
|
|
|
279 |
|
|
|
257 |
|
Restructuring charges |
|
|
4 |
|
|
|
— |
|
|
|
33 |
|
|
|
42 |
|
Acquisition-related expense |
|
|
5 |
|
|
|
2 |
|
|
|
13 |
|
|
|
16 |
|
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
|
|
(156 |
) |
Total operating expenses |
|
|
796 |
|
|
|
580 |
|
|
|
3,063 |
|
|
|
2,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from operations |
|
|
293 |
|
|
|
455 |
|
|
|
1,157 |
|
|
|
1,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other expense, net |
|
|
(21 |
) |
|
|
(19 |
) |
|
|
(62 |
) |
|
|
(69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
|
272 |
|
|
|
436 |
|
|
|
1,095 |
|
|
|
962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision for income taxes |
|
|
13 |
|
|
|
102 |
|
|
|
158 |
|
|
|
232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
259 |
|
|
$ |
334 |
|
|
$ |
937 |
|
|
$ |
730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.17 |
|
|
$ |
1.50 |
|
|
$ |
4.20 |
|
|
$ |
3.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted |
|
$ |
1.14 |
|
|
$ |
1.46 |
|
|
$ |
4.09 |
|
|
$ |
3.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shares used in net income per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
222 |
|
|
|
222 |
|
|
|
223 |
|
|
|
222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted |
|
|
228 |
|
|
|
229 |
|
|
|
229 |
|
|
|
226 |
|
NETAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
April 29, 2022 |
|
|
April 30, 2021 |
|
|
April 29, 2022 |
|
|
April 30, 2021 |
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
259 |
|
|
$ |
334 |
|
|
$ |
937 |
|
|
$ |
730 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
51 |
|
|
|
48 |
|
|
|
194 |
|
|
|
207 |
|
Non-cash operating lease cost |
|
|
15 |
|
|
|
14 |
|
|
|
55 |
|
|
|
52 |
|
Stock-based compensation |
|
|
66 |
|
|
|
48 |
|
|
|
245 |
|
|
|
197 |
|
Deferred income taxes |
|
|
(78 |
) |
|
|
(5 |
) |
|
|
(144 |
) |
|
|
(6 |
) |
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
|
|
(156 |
) |
Other items, net |
|
|
(19 |
) |
|
|
(11 |
) |
|
|
(54 |
) |
|
|
24 |
|
Changes in assets and liabilities, net of acquisitions of businesses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
(450 |
) |
|
|
(146 |
) |
|
|
(313 |
) |
|
|
62 |
|
Inventories |
|
|
(37 |
) |
|
|
(8 |
) |
|
|
(90 |
) |
|
|
31 |
|
Accounts payable |
|
|
171 |
|
|
|
81 |
|
|
|
181 |
|
|
|
(11 |
) |
Accrued expenses |
|
|
96 |
|
|
|
195 |
|
|
|
(111 |
) |
|
|
134 |
|
Deferred revenue and financed unearned services revenue |
|
|
338 |
|
|
|
183 |
|
|
|
384 |
|
|
|
193 |
|
Long-term taxes payable |
|
|
21 |
|
|
|
(6 |
) |
|
|
(45 |
) |
|
|
(57 |
) |
Changes in other operating assets and liabilities, net |
|
|
(22 |
) |
|
|
(12 |
) |
|
|
(28 |
) |
|
|
(67 |
) |
Net cash provided by operating activities |
|
|
411 |
|
|
|
559 |
|
|
|
1,211 |
|
|
|
1,333 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Redemptions of investments, net |
|
|
9 |
|
|
|
20 |
|
|
|
45 |
|
|
|
160 |
|
Purchases of property and equipment |
|
|
(68 |
) |
|
|
(38 |
) |
|
|
(226 |
) |
|
|
(162 |
) |
Proceeds from sale of properties |
|
|
— |
|
|
|
365 |
|
|
|
— |
|
|
|
371 |
|
Acquisitions of businesses, net of cash acquired |
|
|
(21 |
) |
|
|
— |
|
|
|
(380 |
) |
|
|
(350 |
) |
Other investing activities, net |
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
2 |
|
Net cash (used in) provided by investing activities |
|
|
(80 |
) |
|
|
341 |
|
|
|
(561 |
) |
|
|
21 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Proceeds from issuance of common stock under employee stock award plans |
|
|
— |
|
|
|
6 |
|
|
|
105 |
|
|
|
98 |
|
Payments for taxes related to net share settlement of stock awards |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(74 |
) |
|
|
(42 |
) |
Repurchase of common stock |
|
|
(250 |
) |
|
|
(75 |
) |
|
|
(600 |
) |
|
|
(125 |
) |
Repayments of commercial paper notes, original maturities of three months or less, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(420 |
) |
Issuances of debt, net of issuance costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,057 |
|
Repayments and extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(689 |
) |
Dividends paid |
|
|
(111 |
) |
|
|
(106 |
) |
|
|
(446 |
) |
|
|
(427 |
) |
Other financing activities, net |
|
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
Net cash (used in) provided by financing activities |
|
|
(366 |
) |
|
|
(180 |
) |
|
|
(1,017 |
) |
|
|
444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(23 |
) |
|
|
1 |
|
|
|
(49 |
) |
|
|
71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net change in cash, cash equivalents and restricted cash |
|
|
(58 |
) |
|
|
721 |
|
|
|
(416 |
) |
|
|
1,869 |
|
Cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Beginning of period |
|
|
4,177 |
|
|
|
3,814 |
|
|
|
4,535 |
|
|
|
2,666 |
|
End of period |
|
$ |
4,119 |
|
|
$ |
4,535 |
|
|
$ |
4,119 |
|
|
$ |
4,535 |
|
NETAPP, INC. SUPPLEMENTAL DATA (In millions except net income per share, percentages, DSO, DPO and Inventory Turns) (Unaudited) |
||||||||||||||||||||
|
||||||||||||||||||||
In the first quarter of fiscal year 2022, the Company introduced two segments for financial reporting purposes: Hybrid Cloud and Public Cloud. Prior period disclosures have been revised for comparability. |
||||||||||||||||||||
|
||||||||||||||||||||
Revenues by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Product |
|
$ |
894 |
|
|
$ |
846 |
|
|
$ |
840 |
|
|
$ |
3,284 |
|
|
$ |
2,991 |
|
Support |
|
|
590 |
|
|
|
586 |
|
|
|
576 |
|
|
|
2,344 |
|
|
|
2,277 |
|
Professional and Other Services |
|
|
76 |
|
|
|
72 |
|
|
|
73 |
|
|
|
294 |
|
|
|
277 |
|
Hybrid Cloud Segment Net Revenues |
|
|
1,560 |
|
|
|
1,504 |
|
|
|
1,489 |
|
|
|
5,922 |
|
|
|
5,545 |
|
Public Cloud Segment Net Revenues |
|
|
120 |
|
|
|
110 |
|
|
|
66 |
|
|
|
396 |
|
|
|
199 |
|
Net Revenues |
|
$ |
1,680 |
|
|
$ |
1,614 |
|
|
$ |
1,555 |
|
|
$ |
6,318 |
|
|
$ |
5,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross Profit by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Product |
|
$ |
452 |
|
|
$ |
442 |
|
|
$ |
456 |
|
|
$ |
1,743 |
|
|
$ |
1,589 |
|
Support |
|
|
547 |
|
|
|
541 |
|
|
|
525 |
|
|
|
2,160 |
|
|
|
2,076 |
|
Professional and Other Services |
|
|
22 |
|
|
|
26 |
|
|
|
18 |
|
|
|
89 |
|
|
|
71 |
|
Hybrid Cloud Segment Gross Profit |
|
|
1,021 |
|
|
|
1,009 |
|
|
|
999 |
|
|
|
3,992 |
|
|
|
3,736 |
|
Public Cloud Segment Gross Profit |
|
|
82 |
|
|
|
78 |
|
|
|
47 |
|
|
|
278 |
|
|
|
134 |
|
Total Segments Gross Profit |
|
|
1,103 |
|
|
|
1,087 |
|
|
|
1,046 |
|
|
|
4,270 |
|
|
|
3,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of Intangible Assets |
|
|
(10 |
) |
|
|
(9 |
) |
|
|
(7 |
) |
|
|
(33 |
) |
|
|
(41 |
) |
Stock-based Compensation |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(17 |
) |
|
|
(14 |
) |
Unallocated Cost of Revenues |
|
|
(14 |
) |
|
|
(14 |
) |
|
|
(11 |
) |
|
|
(50 |
) |
|
|
(55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross Profit |
|
$ |
1,089 |
|
|
$ |
1,073 |
|
|
$ |
1,035 |
|
|
$ |
4,220 |
|
|
$ |
3,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross Margin by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Product |
|
|
50.6 |
% |
|
|
52.2 |
% |
|
|
54.3 |
% |
|
|
53.1 |
% |
|
|
53.1 |
% |
Support |
|
|
92.7 |
% |
|
|
92.3 |
% |
|
|
91.1 |
% |
|
|
92.2 |
% |
|
|
91.2 |
% |
Professional and Other Services |
|
|
28.9 |
% |
|
|
36.1 |
% |
|
|
24.7 |
% |
|
|
30.3 |
% |
|
|
25.6 |
% |
Hybrid Cloud Segment Gross Margin |
|
|
65.4 |
% |
|
|
67.1 |
% |
|
|
67.1 |
% |
|
|
67.4 |
% |
|
|
67.4 |
% |
Public Cloud Segment Gross Margin |
|
|
68.3 |
% |
|
|
70.9 |
% |
|
|
71.2 |
% |
|
|
70.2 |
% |
|
|
67.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Product Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Total |
|
$ |
894 |
|
|
$ |
846 |
|
|
$ |
840 |
|
|
$ |
3,284 |
|
|
$ |
2,991 |
|
Software* |
|
$ |
530 |
|
|
$ |
507 |
|
|
$ |
480 |
|
|
$ |
1,926 |
|
|
$ |
1,636 |
|
Hardware* |
|
$ |
364 |
|
|
$ |
339 |
|
|
$ |
360 |
|
|
$ |
1,358 |
|
|
$ |
1,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Software and recurring support and public cloud revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Product - Software |
|
$ |
530 |
|
|
$ |
507 |
|
|
$ |
480 |
|
|
$ |
1,926 |
|
|
$ |
1,636 |
|
Support |
|
|
590 |
|
|
|
586 |
|
|
|
576 |
|
|
|
2,344 |
|
|
|
2,277 |
|
Public Cloud |
|
|
120 |
|
|
|
110 |
|
|
|
66 |
|
|
|
396 |
|
|
|
199 |
|
Software and recurring support and public cloud revenue* |
|
$ |
1,240 |
|
|
$ |
1,203 |
|
|
$ |
1,122 |
|
|
$ |
4,666 |
|
|
$ |
4,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Software and recurring support and public cloud revenue as a percentage of net revenues |
|
|
74 |
% |
|
|
75 |
% |
|
|
72 |
% |
|
|
74 |
% |
|
|
72 |
% |
|
||||||||||||||||||||
* Our revenue recognition policy under GAAP defines a configured storage system, inclusive of the operating system software essential to its functionality, as a single performance obligation. We have provided a breakdown of our GAAP product revenues into the software and hardware components, which are considered non-GAAP measures, to display the significance of software included in total product revenues. Software and recurring support and public cloud revenue is a non-GAAP measure because it includes the software component of our product revenues, but not the hardware component. |
||||||||||||||||||||
|
||||||||||||||||||||
Geographic Mix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
% of Q4 FY'22 |
|
|
% of Q3 FY'22 |
|
|
% of Q4 FY'21 |
|
|
% of FY 2022 |
|
|
% of FY 2021 |
|
|||||
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|||||
Americas |
|
|
54 |
% |
|
|
56 |
% |
|
|
53 |
% |
|
|
55 |
% |
|
|
54 |
% |
Americas Commercial |
|
|
45 |
% |
|
|
47 |
% |
|
|
44 |
% |
|
|
45 |
% |
|
|
43 |
% |
U.S. Public Sector |
|
|
9 |
% |
|
|
9 |
% |
|
|
9 |
% |
|
|
10 |
% |
|
|
11 |
% |
EMEA |
|
|
32 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
31 |
% |
|
|
31 |
% |
Asia Pacific |
|
|
14 |
% |
|
|
12 |
% |
|
|
15 |
% |
|
|
14 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pathways Mix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
% of Q4 FY'22 |
|
|
% of Q3 FY'22 |
|
|
% of Q4 FY'21 |
|
|
% of FY 2022 |
|
|
% of FY 2021 |
|
|||||
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|||||
Direct |
|
|
24 |
% |
|
|
21 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
23 |
% |
Indirect |
|
|
76 |
% |
|
|
79 |
% |
|
|
77 |
% |
|
|
77 |
% |
|
|
77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-GAAP Income from Operations, Income before Income Taxes & Effective Tax Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Non-GAAP Income from Operations |
|
$ |
382 |
|
|
$ |
404 |
|
|
$ |
358 |
|
|
$ |
1,496 |
|
|
$ |
1,184 |
|
% of Net Revenues |
|
|
22.7 |
% |
|
|
25.0 |
% |
|
|
23.0 |
% |
|
|
23.7 |
% |
|
|
20.6 |
% |
Non-GAAP Income before Income Taxes |
|
$ |
361 |
|
|
$ |
389 |
|
|
$ |
339 |
|
|
$ |
1,434 |
|
|
$ |
1,123 |
|
Non-GAAP Effective Tax Rate |
|
|
10.2 |
% |
|
|
15.2 |
% |
|
|
20.9 |
% |
|
|
15.7 |
% |
|
|
18.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-GAAP Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Non-GAAP Net Income |
|
$ |
324 |
|
|
$ |
330 |
|
|
$ |
268 |
|
|
$ |
1,209 |
|
|
$ |
917 |
|
Non-GAAP Weighted Average Common Shares Outstanding, Diluted |
|
|
228 |
|
|
|
229 |
|
|
|
229 |
|
|
|
229 |
|
|
|
226 |
|
Non-GAAP Net Income per Share, Diluted |
|
$ |
1.42 |
|
|
$ |
1.44 |
|
|
$ |
1.17 |
|
|
$ |
5.28 |
|
|
$ |
4.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Select Balance Sheet Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
|
|||||||||
Deferred Revenue and Financed Unearned Services Revenue |
|
$ |
4,232 |
|
|
$ |
3,969 |
|
|
$ |
4,003 |
|
|
|
||||||
DSO (days) |
|
|
67 |
|
|
|
45 |
|
|
|
55 |
|
|
|
||||||
DPO (days) |
|
|
93 |
|
|
|
73 |
|
|
|
74 |
|
|
|
||||||
Inventory Turns |
|
|
12 |
|
|
|
13 |
|
|
|
18 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Days sales outstanding (DSO) is defined as accounts receivable divided by net revenues, multiplied by the number of days in the quarter. |
||||||||||||||||||||
Days payables outstanding (DPO) is defined as accounts payable divided by cost of revenues, multiplied by the number of days in the quarter. |
||||||||||||||||||||
Inventory turns is defined as annualized cost of revenues divided by net inventories. |
||||||||||||||||||||
|
||||||||||||||||||||
Select Cash Flow Statement Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Net Cash Provided by Operating Activities |
|
$ |
411 |
|
|
$ |
260 |
|
|
$ |
559 |
|
|
$ |
1,211 |
|
|
$ |
1,333 |
|
Purchases of Property and Equipment |
|
$ |
68 |
|
|
$ |
61 |
|
|
$ |
38 |
|
|
$ |
226 |
|
|
$ |
162 |
|
Free Cash Flow |
|
$ |
343 |
|
|
$ |
199 |
|
|
$ |
521 |
|
|
$ |
985 |
|
|
$ |
1,171 |
|
Free Cash Flow as % of Net Revenues |
|
|
20.4 |
% |
|
|
12.3 |
% |
|
|
33.5 |
% |
|
|
15.6 |
% |
|
|
20.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities less purchases of property and equipment. |
||||||||||||||||||||
NETAPP, INC. RECONCILIATION OF NON-GAAP TO GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
NET INCOME |
|
$ |
259 |
|
|
$ |
252 |
|
|
$ |
334 |
|
|
$ |
937 |
|
|
$ |
730 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
14 |
|
|
|
13 |
|
|
|
9 |
|
|
|
46 |
|
|
|
49 |
|
Stock-based compensation |
|
|
66 |
|
|
|
64 |
|
|
|
48 |
|
|
|
245 |
|
|
|
197 |
|
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
5 |
|
Restructuring charges |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
42 |
|
Acquisition-related expense |
|
|
5 |
|
|
|
6 |
|
|
|
2 |
|
|
|
13 |
|
|
|
16 |
|
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
|
|
(156 |
) |
Gain on sale of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
Debt extinguishment costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
Income tax effects |
|
|
(24 |
) |
|
|
(5 |
) |
|
|
18 |
|
|
|
(68 |
) |
|
|
(20 |
) |
Income tax expenses from integration of acquired companies |
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
1 |
|
|
|
46 |
|
NON-GAAP NET INCOME |
|
$ |
324 |
|
|
$ |
330 |
|
|
$ |
268 |
|
|
$ |
1,209 |
|
|
$ |
917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
COST OF REVENUES |
|
$ |
591 |
|
|
$ |
541 |
|
|
$ |
520 |
|
|
$ |
2,098 |
|
|
$ |
1,929 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(10 |
) |
|
|
(9 |
) |
|
|
(7 |
) |
|
|
(33 |
) |
|
|
(41 |
) |
Stock-based compensation |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(17 |
) |
|
|
(14 |
) |
NON-GAAP COST OF REVENUES |
|
$ |
577 |
|
|
$ |
527 |
|
|
$ |
509 |
|
|
$ |
2,048 |
|
|
$ |
1,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
COST OF PRODUCT REVENUES |
|
$ |
446 |
|
|
$ |
407 |
|
|
$ |
387 |
|
|
$ |
1,554 |
|
|
$ |
1,432 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(26 |
) |
Stock-based compensation |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
NON-GAAP COST OF PRODUCT REVENUES |
|
$ |
442 |
|
|
$ |
404 |
|
|
$ |
384 |
|
|
$ |
1,541 |
|
|
$ |
1,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
COST OF SERVICES REVENUES |
|
$ |
145 |
|
|
$ |
134 |
|
|
$ |
133 |
|
|
$ |
544 |
|
|
$ |
497 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(5 |
) |
|
|
(24 |
) |
|
|
(15 |
) |
Stock-based compensation |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
(13 |
) |
|
(10 |
) |
||
NON-GAAP COST OF SERVICES REVENUES |
|
$ |
135 |
|
|
$ |
123 |
|
|
$ |
125 |
|
|
$ |
507 |
|
|
$ |
472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GROSS PROFIT |
|
$ |
1,089 |
|
|
$ |
1,073 |
|
|
$ |
1,035 |
|
|
$ |
4,220 |
|
|
$ |
3,815 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
10 |
|
|
|
9 |
|
|
|
7 |
|
|
|
33 |
|
|
|
41 |
|
Stock-based compensation |
|
|
4 |
|
|
|
5 |
|
|
|
4 |
|
|
|
17 |
|
|
|
14 |
|
NON-GAAP GROSS PROFIT |
|
$ |
1,103 |
|
|
$ |
1,087 |
|
|
$ |
1,046 |
|
|
$ |
4,270 |
|
|
$ |
3,870 |
|
NETAPP, INC. RECONCILIATION OF NON-GAAP TO GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
SALES AND MARKETING EXPENSES |
|
$ |
480 |
|
|
$ |
461 |
|
|
$ |
447 |
|
|
$ |
1,857 |
|
|
$ |
1,744 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
(8 |
) |
Stock-based compensation |
|
|
(30 |
) |
|
|
(30 |
) |
|
|
(22 |
) |
|
|
(115 |
) |
|
|
(92 |
) |
NON-GAAP SALES AND MARKETING EXPENSES |
|
$ |
446 |
|
|
$ |
427 |
|
|
$ |
423 |
|
|
$ |
1,729 |
|
|
$ |
1,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
RESEARCH AND DEVELOPMENT EXPENSES |
|
$ |
235 |
|
|
$ |
220 |
|
|
$ |
221 |
|
|
$ |
881 |
|
|
$ |
881 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stock-based compensation |
|
|
(22 |
) |
|
|
(19 |
) |
|
|
(15 |
) |
|
|
(75 |
) |
|
|
(64 |
) |
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES |
|
$ |
213 |
|
|
$ |
201 |
|
|
$ |
206 |
|
|
$ |
806 |
|
|
$ |
817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GENERAL AND ADMINISTRATIVE EXPENSES |
|
$ |
72 |
|
|
$ |
65 |
|
|
$ |
66 |
|
|
$ |
279 |
|
|
$ |
257 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stock-based compensation |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(7 |
) |
|
|
(38 |
) |
|
|
(27 |
) |
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(5 |
) |
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES |
|
$ |
62 |
|
|
$ |
55 |
|
|
$ |
59 |
|
|
$ |
239 |
|
|
$ |
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
RESTRUCTURING CHARGES |
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
33 |
|
|
$ |
42 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restructuring charges |
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(33 |
) |
|
|
(42 |
) |
NON-GAAP RESTRUCTURING CHARGES |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
ACQUISITION-RELATED EXPENSE |
|
$ |
5 |
|
|
$ |
6 |
|
|
$ |
2 |
|
|
$ |
13 |
|
|
$ |
16 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisition-related expense |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
(16 |
) |
NON-GAAP ACQUISITION-RELATED EXPENSE |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAIN ON SALE OR DERECOGNITION OF ASSETS |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(156 |
) |
|
$ |
— |
|
|
$ |
(156 |
) |
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
156 |
|
|
|
— |
|
|
|
156 |
|
NON-GAAP GAIN ON SALE OR DERECOGNITION OF ASSETS |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
OPERATING EXPENSES |
|
$ |
796 |
|
|
$ |
752 |
|
|
$ |
580 |
|
|
$ |
3,063 |
|
|
$ |
2,784 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
(8 |
) |
Stock-based compensation |
|
|
(62 |
) |
|
|
(59 |
) |
|
|
(44 |
) |
|
|
(228 |
) |
|
|
(183 |
) |
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(5 |
) |
Restructuring charges |
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(33 |
) |
|
|
(42 |
) |
Acquisition-related expense |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
(16 |
) |
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
156 |
|
|
|
— |
|
|
|
156 |
|
NON-GAAP OPERATING EXPENSES |
|
$ |
721 |
|
|
$ |
683 |
|
|
$ |
688 |
|
|
$ |
2,774 |
|
|
$ |
2,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NETAPP, INC. RECONCILIATION OF NON-GAAP TO GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
INCOME FROM OPERATIONS |
|
$ |
293 |
|
|
$ |
321 |
|
|
$ |
455 |
|
|
$ |
1,157 |
|
|
$ |
1,031 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
14 |
|
|
|
13 |
|
|
|
9 |
|
|
|
46 |
|
|
|
49 |
|
Stock-based compensation |
|
|
66 |
|
|
|
64 |
|
|
|
48 |
|
|
|
245 |
|
|
|
197 |
|
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
5 |
|
Restructuring charges |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
42 |
|
Acquisition-related expense |
|
|
5 |
|
|
|
6 |
|
|
|
2 |
|
|
|
13 |
|
|
|
16 |
|
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
|
|
(156 |
) |
NON-GAAP INCOME FROM OPERATIONS |
|
$ |
382 |
|
|
$ |
404 |
|
|
$ |
358 |
|
|
$ |
1,496 |
|
|
$ |
1,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
OTHER EXPENSE, NET |
|
$ |
(21 |
) |
|
$ |
(15 |
) |
|
$ |
(19 |
) |
|
$ |
(62 |
) |
|
$ |
(69 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Debt extinguishment costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
Gain on sale of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
NON-GAAP OTHER EXPENSE, NET |
|
$ |
(21 |
) |
|
$ |
(15 |
) |
|
$ |
(19 |
) |
|
$ |
(62 |
) |
|
$ |
(61 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
INCOME BEFORE INCOME TAXES |
|
$ |
272 |
|
|
$ |
306 |
|
|
$ |
436 |
|
|
$ |
1,095 |
|
|
$ |
962 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
14 |
|
|
|
13 |
|
|
|
9 |
|
|
|
46 |
|
|
|
49 |
|
Stock-based compensation |
|
|
66 |
|
|
|
64 |
|
|
|
48 |
|
|
|
245 |
|
|
|
197 |
|
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
5 |
|
Restructuring charges |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
42 |
|
Acquisition-related expense |
|
|
5 |
|
|
|
6 |
|
|
|
2 |
|
|
|
13 |
|
|
|
16 |
|
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
|
|
(156 |
) |
Debt extinguishment costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
Gain on sale of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
NON-GAAP INCOME BEFORE INCOME TAXES |
|
$ |
361 |
|
|
$ |
389 |
|
|
$ |
339 |
|
|
$ |
1,434 |
|
|
$ |
1,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
PROVISION FOR INCOME TAXES |
|
$ |
13 |
|
|
$ |
54 |
|
|
$ |
102 |
|
|
$ |
158 |
|
|
$ |
232 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax effects |
|
|
24 |
|
|
|
5 |
|
|
|
(18 |
) |
|
|
68 |
|
|
|
20 |
|
Income tax expenses from integration of acquired companies |
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
|
|
(1 |
) |
|
|
(46 |
) |
NON-GAAP PROVISION FOR INCOME TAXES |
|
$ |
37 |
|
|
$ |
59 |
|
|
$ |
71 |
|
|
$ |
225 |
|
|
$ |
206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NET INCOME PER SHARE |
|
$ |
1.14 |
|
|
$ |
1.10 |
|
|
$ |
1.46 |
|
|
$ |
4.09 |
|
|
$ |
3.23 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
0.06 |
|
|
|
0.06 |
|
|
|
0.04 |
|
|
|
0.20 |
|
|
|
0.22 |
|
Stock-based compensation |
|
|
0.29 |
|
|
|
0.28 |
|
|
|
0.21 |
|
|
|
1.07 |
|
|
|
0.87 |
|
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
Restructuring charges |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
0.14 |
|
|
|
0.19 |
|
Acquisition-related expense |
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.06 |
|
|
|
0.07 |
|
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
(0.68 |
) |
|
|
— |
|
|
|
(0.69 |
) |
Debt extinguishment costs |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|||
Gain on sale of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
Income tax effects |
|
|
(0.11 |
) |
|
|
(0.02 |
) |
|
|
0.08 |
|
|
|
(0.30 |
) |
|
|
(0.09 |
) |
Income tax expenses from integration of acquired companies |
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.20 |
|
NON-GAAP NET INCOME PER SHARE |
|
$ |
1.42 |
|
|
$ |
1.44 |
|
|
$ |
1.17 |
|
|
$ |
5.28 |
|
|
$ |
4.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
RECONCILIATION OF NON-GAAP TO GAAP GROSS MARGIN ($ in millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Gross margin-GAAP |
|
|
64.8 |
% |
|
|
66.5 |
% |
|
|
66.6 |
% |
|
|
66.8 |
% |
|
|
66.4 |
% |
Cost of revenues adjustments |
|
|
0.8 |
% |
|
|
0.9 |
% |
|
|
0.7 |
% |
|
|
0.8 |
% |
|
|
1.0 |
% |
Gross margin-Non-GAAP |
|
|
65.7 |
% |
|
|
67.3 |
% |
|
|
67.3 |
% |
|
|
67.6 |
% |
|
|
67.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP cost of revenues |
|
$ |
591 |
|
|
$ |
541 |
|
|
$ |
520 |
|
|
$ |
2,098 |
|
|
$ |
1,929 |
|
Cost of revenues adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(10 |
) |
|
|
(9 |
) |
|
|
(7 |
) |
|
|
(33 |
) |
|
|
(41 |
) |
Stock-based compensation |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(17 |
) |
|
|
(14 |
) |
Non-GAAP cost of revenues |
|
$ |
577 |
|
|
$ |
527 |
|
|
$ |
509 |
|
|
$ |
2,048 |
|
|
$ |
1,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net revenues |
|
$ |
1,680 |
|
|
$ |
1,614 |
|
|
$ |
1,555 |
|
|
$ |
6,318 |
|
|
$ |
5,744 |
|
RECONCILIATION OF NON-GAAP TO GAAP PRODUCT GROSS MARGIN ($ in millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Product gross margin-GAAP |
|
|
50.1 |
% |
|
|
51.9 |
% |
|
|
53.9 |
% |
|
|
52.7 |
% |
|
|
52.1 |
% |
Cost of product revenues adjustments |
|
|
0.4 |
% |
|
|
0.4 |
% |
|
|
0.4 |
% |
|
|
0.4 |
% |
|
|
1.0 |
% |
Product gross margin-Non-GAAP |
|
|
50.6 |
% |
|
|
52.2 |
% |
|
|
54.3 |
% |
|
|
53.1 |
% |
|
|
53.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP cost of product revenues |
|
$ |
446 |
|
|
$ |
407 |
|
|
$ |
387 |
|
|
$ |
1,554 |
|
|
$ |
1,432 |
|
Cost of product revenues adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(26 |
) |
Stock-based compensation |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
Non-GAAP cost of product revenues |
|
$ |
442 |
|
|
$ |
404 |
|
|
$ |
384 |
|
|
$ |
1,541 |
|
|
$ |
1,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Product revenues |
|
$ |
894 |
|
|
$ |
846 |
|
|
$ |
840 |
|
|
$ |
3,284 |
|
|
$ |
2,991 |
|
RECONCILIATION OF NON-GAAP TO GAAP SERVICES GROSS MARGIN ($ in millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Services gross margin-GAAP |
|
|
81.6 |
% |
|
|
82.6 |
% |
|
|
81.4 |
% |
|
|
82.1 |
% |
|
|
81.9 |
% |
Cost of services revenues adjustments |
|
|
1.3 |
% |
|
|
1.4 |
% |
|
|
1.1 |
% |
|
|
1.2 |
% |
|
|
1.0 |
% |
Services gross margin-Non-GAAP |
|
|
82.8 |
% |
|
|
84.0 |
% |
|
|
82.5 |
% |
|
|
83.3 |
% |
|
|
82.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP cost of services revenues |
|
$ |
145 |
|
|
$ |
134 |
|
|
$ |
133 |
|
|
$ |
544 |
|
|
$ |
497 |
|
Cost of services revenues adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(5 |
) |
|
|
(24 |
) |
|
|
(15 |
) |
Stock-based compensation |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(13 |
) |
|
|
(10 |
) |
Non-GAAP cost of services revenues |
|
$ |
135 |
|
|
$ |
123 |
|
|
$ |
125 |
|
|
$ |
507 |
|
|
$ |
472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Services revenues |
|
$ |
786 |
|
|
$ |
768 |
|
|
$ |
715 |
|
|
$ |
3,034 |
|
|
$ |
2,753 |
|
RECONCILIATION OF NON-GAAP TO GAAP EFFECTIVE TAX RATE |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
GAAP effective tax rate |
|
|
4.8 |
% |
|
|
17.6 |
% |
|
|
23.4 |
% |
|
|
14.4 |
% |
|
|
24.1 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax effects |
|
|
5.5 |
% |
|
|
(2.5 |
)% |
|
|
0.5 |
% |
|
|
1.4 |
% |
|
|
(1.0 |
)% |
Income tax expenses from integration of acquired companies |
|
|
— |
% |
|
|
— |
% |
|
|
(3.0 |
)% |
|
|
(0.1 |
)% |
|
|
(4.8 |
)% |
Non-GAAP effective tax rate |
|
|
10.2 |
% |
|
|
15.2 |
% |
|
|
20.9 |
% |
|
|
15.7 |
% |
|
|
18.3 |
% |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (NON-GAAP) (In millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Net cash provided by operating activities |
|
$ |
411 |
|
|
$ |
260 |
|
|
$ |
559 |
|
|
$ |
1,211 |
|
|
$ |
1,333 |
|
Purchases of property and equipment |
|
|
(68 |
) |
|
|
(61 |
) |
|
|
(38 |
) |
|
|
(226 |
) |
|
|
(162 |
) |
Free cash flow |
|
$ |
343 |
|
|
$ |
199 |
|
|
$ |
521 |
|
|
$ |
985 |
|
|
$ |
1,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
||||||||||||||||||||
RECONCILIATION OF NET REVENUES TO BILLINGS (NON-GAAP) (In millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Net revenues |
|
$ |
1,680 |
|
|
$ |
1,614 |
|
|
$ |
1,555 |
|
|
$ |
6,318 |
|
|
$ |
5,744 |
|
Change in deferred revenue and financed unearned services revenue* |
|
|
338 |
|
|
|
143 |
|
|
|
183 |
|
|
|
384 |
|
|
|
193 |
|
Billings |
|
$ |
2,018 |
|
|
$ |
1,757 |
|
|
$ |
1,738 |
|
|
$ |
6,702 |
|
|
$ |
5,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
* As reported on our Condensed Consolidated Statements of Cash Flows |
|
|||||||||||||||||||
| NETAPP, INC.
RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP EXPRESSED AS EARNINGS PER SHARE FIRST QUARTER FISCAL 2023 |
||
|
||
|
|
First Quarter |
|
|
Fiscal 2023 |
|
|
|
Non-GAAP Guidance - Net Income Per Share |
|
$1.05 - $1.15 |
|
|
|
Adjustments of Specific Items to Net Income |
|
|
Per Share for the First Quarter Fiscal 2023: |
|
|
Amortization of intangible assets |
|
($0.08) |
Stock-based compensation expense |
|
($0.30) |
Income tax effects |
|
$0.05 |
Total Adjustments |
|
($0.33) |
|
|
|
GAAP Guidance - Net Income Per Share |
|
$0.72 - $0.82 |
Some items may not add or recalculate due to rounding. |
||
NETAPP, INC. RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP FISCAL 2023 (Unaudited) |
||
|
||
|
|
Fiscal 2023 |
|
|
|
Gross Margin - Non-GAAP Guidance |
|
66% - 67% |
Adjustment: |
|
|
Cost of revenues adjustments |
|
(1)% |
Gross Margin - GAAP Guidance |
|
65% - 66% |
|
|
|
|
|
Fiscal 2023 |
|
|
|
Operating Margin - Non-GAAP Guidance |
|
23% - 24% |
Adjustments: |
|
|
Amortization of intangible assets |
|
(1)% |
Stock-based compensation expense |
|
(4)% |
Operating Margin - GAAP Guidance |
|
18% - 19% |
|
|
|
|
|
Fiscal 2023 |
|
|
|
Effective Tax Rate - Non-GAAP Guidance |
|
21% - 22% |
Adjustment: |
|
|
Income tax effects |
|
3% |
Effective Tax Rate - GAAP Guidance |
|
24% - 25% |
|
|
|
Some items may not add or recalculate due to rounding. |
||
NETAPP, INC. RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP EXPRESSED AS EARNINGS PER SHARE FISCAL 2023 |
||
|
||
|
|
Fiscal 2023 |
|
|
|
Non-GAAP Guidance - Net Income Per Share |
|
$5.40 - $5.60 |
|
|
|
Adjustments of Specific Items to Net Income |
|
|
Per Share for Fiscal 2023: |
|
|
Amortization of intangible assets |
|
($0.30) |
Stock-based compensation expense |
|
($1.33) |
Income tax effects |
|
$0.19 |
Total Adjustments |
|
($1.44) |
|
|
|
GAAP Guidance - Net Income Per Share |
|
$3.96 - $4.16 |
|
|
|
Some items may not add or recalculate due to rounding. |
||
Чистая выручка за четвертый квартал выросла на 8% в годовом исчислении до $1,68 млрд.; Чистая выручка за 2022 финансовый год выросла на 10% до $6,32 млрд.
Счета за 4 квартал1 составили 2,02 миллиарда долларов, увеличившись на 16% в годовом исчислении.
Выручка от продаж продукции в 4 квартале выросла на 6% в годовом исчислении до 894 миллионов долларов, что является пятым кварталом подряд роста по сравнению с аналогичным периодом прошлого года
Годовой доход от публичного облака NetApp™ (ARR)2 увеличился на 68% по сравнению с аналогичным периодом прошлого года и составил 505 миллионов долларов.
Чистая выручка All-flash array в годовом исчислении3 увеличилась на 12% по сравнению с аналогичным периодом прошлого года и составила 3,2 миллиарда долларов
В 2022 финансовом году акционерам было возвращено 1,05 миллиарда долларов, 86% денежных средств от операционной деятельности; 106% свободного денежного потока
САН-ХОСЕ, Калифорния.--(BUSINESS WIRE)--NetApp (NASDAQ: NTAP) сегодня сообщила о финансовых результатах за четвертый квартал и 2022 финансовый год, который закончился 29 апреля 2022 года.
“Наши солидные результаты за четвертый квартал завершают успешный год. Мы добились устойчивого прогресса в достижении наших стратегических целей: завоевания доли в корпоративных хранилищах, расширения нашего бизнеса в области общедоступных облаков и, что особенно важно, достижения рекордных уровней валовой прибыли в долларах, операционной прибыли и прибыли на акцию”, - сказал Джордж Куриан, главный исполнительный директор. “Прочные основы нашего бизнеса, в том числе соответствие приоритетам клиентов, надежный баланс и разумное операционное управление, ставят NetApp в выгодное положение, поскольку мы масштабируем наши общедоступные облачные сервисы, продолжая стимулировать рост наших гибридных облачных решений”.
Финансовые результаты четвертого квартала 2022 финансового года
Финансовые результаты 2022 финансового года
Финансовый прогноз на первый квартал 2023 финансового года
Компания представила следующие финансовые рекомендации на первый квартал 2023 финансового года:
Net revenues are expected to be in the range of: |
$1.475 billion to $1.625 billion |
|
|
GAAP |
Non-GAAP |
Earnings per share is expected to be in the range of: |
$0.72 - $0.82 |
$1.05 - $1.15 |
Финансовый прогноз на весь 2023 финансовый год
Компания представила следующие финансовые рекомендации на весь 2023 финансовый год:
Net revenues are expected to grow in the range of: |
6% to 8% |
|
Public Cloud ARR is expected to exit the fiscal year in the range of: |
$780 million to $820 million |
|
|
GAAP |
Non-GAAP |
Consolidated gross margins are expected to be in the range of: |
65% - 66% |
66% - 67% |
Operating margins are expected to be in the range of: |
18% - 19% |
23% - 24% |
Effective tax rate is expected to be in the range of: |
24% - 25% |
21% - 22% |
Earnings per share is expected to be in the range of: |
$3.96 - $4.16 |
$5.40 - $5.60 |
Следующий денежный дивиденд в размере 0,50 доллара на акцию должен быть выплачен 27 июля 2022 года акционерам record по состоянию на закрытие бизнеса 8 июля 2022 года.
Основные бизнес-показатели четвертого квартала 2022 финансового года
Ведущая инновационная продукция
NetApp Награды и признание
Информация о веб-трансляции и конференц-звонках
NetApp проведет селекторное совещание для обсуждения этих результатов сегодня в 14:30 по тихоокеанскому времени. Чтобы получить доступ к прямой трансляции этого мероприятия, перейдите на веб-сайт по связям с инвесторами NetApp по адресу investors.NetApp.com . Кроме того, этот пресс-релиз, исторические таблицы дополнительных данных и другая информация, связанная с призывом, будут размещены на веб-сайте по связям с инвесторами. Аудиозапись будет доступна на веб-сайте сегодня после 4:30 вечера по тихоокеанскому времени.
Заявление о ”безопасной гавани" в соответствии с Законом США о реформе судебных разбирательств по частным ценным бумагам 1995 года
Настоящий пресс-релиз содержит прогнозные заявления по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года. Эти заявления включают, но не ограничиваются ими, все заявления, сделанные в разделе "Финансовые перспективы на первый квартал 2023 финансового года" и в разделе "Финансовые перспективы на весь 2023 финансовый год", а также заявления о сильных фундаментальных основах нашего бизнеса и, как следствие, сильной позиции, а также о нашей способности масштабировать наши общедоступные облачные сервисы, управляя рост наших гибридных облачных решений. Фактические результаты могут существенно отличаться от этих заявлений по целому ряду причин, включая, помимо прочего, спрос клиентов на наши продукты и услуги и их принятие, нашу способность успешно реализовывать нашу стратегию data fabric для обеспечения прибыльного роста и прибыли акционеров, нашу способность успешно внедрять новые бизнес-модели, общую глобальную политическую, макроэкономические и рыночные условия, изменения в государственных расходах США, сезонность доходов, наша способность управлять нашей валовой прибылью, влияние пандемии COVID-19 на наши бизнес-операции, включая сбои в цепочках поставок, наши финансовые показатели и результаты операций, а также наша способность расширять наш общий доступный рынок и расширяйте наш ассортимент продукции. Эти и другие не менее важные факторы описаны в отчетах и документах, которые мы время от времени подаем в Комиссию по ценным бумагам и биржам, включая факторы, описанные в разделе “Факторы риска” в наших последних представленных отчетах по формам 10-Q и 10-K. Мы отказываемся от каких-либо обязательств по обновлению информации, содержащейся в этом пресс-релизе, будь то в результате новой информации, будущих событий или иным образом.
NetApp, логотип NetApp и знаки, перечисленные на http://www .NetApp.com/TM являются товарными знаками NetApp, Inc. Все остальные знаки являются собственностью их соответствующих владельцев.
1 Обратитесь к разделу NetApp Использование финансовой информации, не относящейся к GAAP, ниже для пояснения выставления счетов. 2Public Cloud annualized revenue run rate (ARR) рассчитывается как годовая стоимость всех обязательств клиентов Public Cloud при условии, что любое обязательство, срок действия которого истекает в течение следующих 12 месяцев, будет продлено на существующих условиях. 3All-flash array годовой показатель чистой выручки определяется выручкой от продуктов и услуг за текущий квартал, умноженной на 4. Чистая прибыль 4Non-GAAP исключает, когда применимо, (a) амортизацию нематериальных активов, (b) расходы на компенсацию на основе акций, (c) урегулирование судебных споров, (d) расходы, связанные с приобретением, (e) расходы на реструктуризацию, (f) обесценение активов, (g) прибыли/убытки от продажи или прекращения признания активов, (h) прибыли/убытки от продажи инвестиций в долевые ценные бумаги, (i) расходы на погашение долга и (j) наш налоговый резерв по GAAP, но включает налоговый резерв, не соответствующий GAAP, основанный на нашей прогнозируемой годовой эффективной ставке налога, не соответствующей GAAP, для первого три квартала финансового года и фактический налоговый резерв, не относящийся к GAAP, за четвертый квартал финансового года. NetApp вносит дополнительные корректировки в налоговое положение, не относящееся к GAAP, для определенных налоговых вопросов, как описано ниже. Подробную сверку наших результатов, не относящихся к GAAP, с результатами GAAP можно найти по адресу http://investors .NetApp.com . Руководство NetApp использует эти показатели, не относящиеся к GAAP, при принятии операционных решений, поскольку считает, что измерения предоставляют значимую дополнительную информацию о текущих операционных показателях NetApp. Чистая прибыль на акцию по ОПБУ 5GAAP и чистая прибыль на акцию, не соответствующая ОПБУ, рассчитываются с использованием разводненного количества акций. 6Newsweek, “Самые надежные компании Америки, 2022 год”, Нэнси Купер, 9 мая 2022 года. Самые надежные компании Америки 2022 - Все победители (newsweek.com ). 7GigaOm, “GigaOm Radar для облачных платформ для гибридной интеграции и автоматизации”, Энрико Синьоретти, Макс Мортилларо, Арьян Тиммерман, 4 апреля 2022 года. Радар GigaOm для высокопроизводительного хранения объектов - Gigaom. 8Business Intelligence Group, “Победители премии за выдающиеся достижения в области обслуживания клиентов 2022 года”, 12 апреля 2022 года. Вот 85 имен, лидирующих в области обслуживания клиентов в 2022 году — Business Intelligence Group (bintelligence.com ). 9Business Intelligence Group, “В честь достижений в области искусственного интеллекта”, 22 марта 2022 г. 6 человек, 26 компаний и 65 продуктов Награждены за выдающиеся достижения в области искусственного интеллекта — Business Intelligence Group (bintelligence.com ). Список хранилища 100 от 10CRN, “Хранилище 100 2022 года: У кого Ваша резервная копия, 2022 Год”, Джозеф Ф. Ковар, 11 апреля 2022 года. Хранилище 100 2022 года: У кого Ваша резервная копия? (crn.com ).
NetApp использование финансовой информации, не относящейся к ОПБУ
В дополнение к информации сокращенной консолидированной финансовой отчетности NetApp, представленной в соответствии с общепринятыми принципами бухгалтерского учета в Соединенных Штатах (GAAP), NetApp предоставляет инвесторам определенные показатели, не относящиеся к GAAP, включая, но не ограничиваясь ими, исторические операционные результаты, не относящиеся к GAAP, чистую прибыль, не относящуюся к GAAP, эффективный налог, не относящийся к GAAP. ставка, свободный денежный поток, выставленные счета, а также историческая и прогнозируемая прибыль на разводненную акцию без учета GAAP. NetApp также представляет аппаратные и программные компоненты наших доходов от продуктов GAAP. Поскольку наша политика признания выручки в соответствии с GAAP определяет настроенную систему хранения данных, включая программное обеспечение операционной системы, необходимое для ее функциональности, как единое обязательство по производительности, аппаратные и программные компоненты доходов от наших продуктов считаются показателями, не относящимися к GAAP. Доходы от аппаратных и программных компонентов нашего продукта определяются исходя из предполагаемого распределения справедливой стоимости цены сделки по нашим контрактам с клиентами, вплоть до уровня аппаратных и программных компонентов продукта. Это распределение в основном основано на договорных ценах, по которым NetApp исторически выставлял счета клиентам за такие соответствующие компоненты.
NetApp считает, что представление данных о чистой прибыли не по GAAP, эффективных налоговых ставках не по GAAP и прибыли на акцию, не по GAAP, в сочетании с соответствующими показателями GAAP, предоставляет инвесторам и руководству полезную информацию о финансовых и бизнес-тенденциях, связанных с его финансовым состоянием и результатами деятельности.
NetApp считает, что представление свободного денежного потока, который он определяет как чистые денежные средства, полученные от операционной деятельности за вычетом денежных средств, использованных для приобретения основных средств, является показателем ликвидности, который предоставляет полезную информацию руководству и инвесторам, поскольку он отражает денежные средства, которые могут быть использованы, среди прочего, для инвестирования в его бизнес, совершать стратегические приобретения, выкупать обыкновенные акции и выплачивать дивиденды по своим обыкновенным акциям. Поскольку свободный денежный поток не является показателем ликвидности, рассчитываемым в соответствии с GAAP, свободный денежный поток следует рассматривать в дополнение к анализу, представленному в отчете о движении денежных средств, но не в качестве замены.
NetApp считает, что презентация программных и аппаратных компонентов доходов от нашей продукции имеет значение для инвесторов и руководства, поскольку она иллюстрирует значимость программного обеспечения Компании и обеспечивает лучшую видимость ценности, создаваемой нашими инновациями в области программного обеспечения и инвестициями в исследования и разработки.
NetApp приближает выставление счетов путем добавления чистой выручки, отраженной в наших Сокращенных консолидированных отчетах о прибылях и убытках за период, к изменению общей суммы доходов будущих периодов и доходов от финансируемых незаработанных услуг, отраженных в наших Сокращенных консолидированных отчетах о движении денежных средств за тот же период. Выставление счетов - это показатель эффективности, который, по мнению NetApp, предоставляет полезную информацию руководству и инвесторам, поскольку он приблизительно соответствует суммам выставленных счетов по заказам на покупку, полученным нами в течение определенного периода.
Руководство NetApp использует эти показатели, не относящиеся к GAAP, при принятии операционных решений, поскольку считает, что измерения предоставляют значимую дополнительную информацию о текущих операционных показателях NetApp. Эти финансовые показатели, не относящиеся к GAAP, используются для: (1) сравнения результатов деятельности компании с историческими результатами, (2) облегчения сравнения с операционными результатами наших конкурентов и (3) обеспечения большей прозрачности в отношении информации, используемой руководством при принятии финансовых и операционных решений.
NetApp исключает следующие элементы из своих показателей, не относящихся к GAAP, когда это применимо:
A. Амортизация нематериальных активов. NetApp учитывает амортизацию нематериальных активов, которые были приобретены в связи с объединением бизнеса. Амортизация нематериальных активов варьируется в зависимости от уровня деятельности по приобретению. Руководство считает полезным исключить эти расходы для оценки надлежащего уровня различных операционных расходов, чтобы помочь в составлении бюджета, планировании и прогнозировании будущих периодов, а также в оценке операционной эффективности.
B. Компенсационные расходы на основе запасов. NetApp исключает расходы на компенсацию на основе акций из своих показателей, не относящихся к GAAP, в первую очередь потому, что сумма может колебаться в зависимости от переменных, не связанных с показателями базового бизнеса. В то время как руководство рассматривает вознаграждение, основанное на акциях, как ключевой элемент удержания наших сотрудников и долгосрочных стимулов, мы не рассматриваем его как расход, который следует использовать при оценке операционной эффективности в любой данный период.
C. Урегулирование судебных споров. NetApp может периодически нести расходы или выгоды, связанные с урегулированием судебных споров. NetApp исключает эти расходы и льготы, если они значительны, поскольку не считает, что они отражают текущие бизнес- и операционные результаты.
D. Расходы, связанные с приобретением. NetApp исключает расходы, связанные с приобретением, включая (а) комплексную проверку, юридические и другие единовременные расходы на интеграцию и (б) списание приобретенных активов, которые NetApp не намерена использовать в своей текущей деятельности, из своих показателей, не относящихся к GAAP, в первую очередь потому, что они не связаны с нашим текущим бизнесом или стоимостной базы и, следовательно, менее полезны для будущего планирования и прогнозирования.
E. Расходы на реструктуризацию. Эти расходы состоят из расходов на реструктуризацию, которые возникают на основе конкретных фактов и обстоятельств решений о реструктуризации, включая условия найма и урегулирования по контракту, а также другие связанные с этим расходы, и могут варьироваться по размеру и частоте. Поэтому мы исключаем их из нашей оценки операционной эффективности.
F. Обесценение активов. Это неденежные расходы на списание активов при наличии признаков обесценения актива. Руководство считает целесообразным исключить эти неденежные расходы из-за непредсказуемости этих событий при оценке операционной деятельности.
G. Прибыли/убытки от продажи или прекращения признания активов. Это прибыли/убытки от продажи нашей собственности и других сделок, в ходе которых мы передаем контроль над активами четвертой стороне. Руководство считает, что эти операции не отражают результаты нашей основной, текущей деятельности и, следовательно, менее полезны для будущего планирования и прогнозирования.
H. Прибыли/убытки от продажи инвестиций в долевые ценные бумаги. Это прибыли/убытки от продажи наших инвестиций в определенные долевые ценные бумаги. Как правило, такие инвестиции продаются в результате смены контроля над базовыми предприятиями. Руководство считает, что эти операции не отражают результаты нашей основной, текущей деятельности и, следовательно, менее полезны для будущего планирования и прогнозирования.
I. Расходы на погашение задолженности. NetApp исключает определенные единовременные расходы, понесенные в результате досрочного погашения долга. Руководство считает, что такие разовые затраты не отражают результаты его основной, текущей деятельности и, следовательно, менее полезны для будущего планирования и прогнозирования.
J. Корректировки по подоходному налогу. Налоговый резерв NetApp, не относящийся к GAAP, основан на прогнозируемой годовой эффективной ставке налога, не относящейся к GAAP, за первые три квартала финансового года и фактическом налоговом резерве, не относящемся к GAAP, за четвертый квартал финансового года. Налоговое положение, не относящееся к GAAP, также исключает, когда это применимо, (a) налоговые сборы или льготы в текущем периоде, которые относятся к одному или нескольким предыдущим финансовым периодам, которые являются результатом таких событий, как изменения в налоговом законодательстве, авторитетные рекомендации, расчеты по налогу на прибыль, нарушения законодательства и/или судебные решения., (b) налоговые сборы или льготы, которые связаны с необычными или разовыми изменениями в бухгалтерском и/или налоговом учете, (c) налоговые сборы, которые являются результатом нерегулярной репатриации иностранной наличности, (d) налоговые сборы или льготы, которые являются результатом нечастой реструктуризации Налоговая структура Компании, (e) налоговые сборы или льготы, которые являются результатом изменения оценочного резерва, и (f) налоговые сборы, возникающие в результате интеграции интеллектуальной собственности в результате приобретений. Руководство считает, что использование налоговых положений, не относящихся к GAAP, обеспечивает более значимую оценку операционной деятельности Компании.
Эти показатели, не относящиеся к GAAP, не соответствуют или не являются альтернативой показателям, подготовленным в соответствии с GAAP, и могут отличаться от показателей, не относящихся к GAAP, используемых другими компаниями. Кроме того, эти показатели, не относящиеся к GAAP, не основаны на каком-либо всеобъемлющем наборе правил или принципов бухгалтерского учета. NetApp считает, что показатели, не относящиеся к GAAP, имеют ограничения в том, что они не отражают все суммы, связанные с результатами деятельности Компании, определенными в соответствии с GAAP, и что эти показатели должны использоваться только для оценки результатов деятельности Компании в сочетании с соответствующими показателями GAAP. Руководство NetApp компенсирует эти ограничения, анализируя текущие и прогнозируемые результаты на основе GAAP, а также на основе, отличной от GAAP. Представление финансовой информации, не относящейся к ОПБУ, не предназначено для рассмотрения изолированно или в качестве замены непосредственно сопоставимых финансовых показателей, подготовленных в соответствии с общепринятыми принципами бухгалтерского учета в Соединенных Штатах. Финансовые показатели, не относящиеся к GAAP, предназначены для дополнения финансовых показателей GAAP и должны рассматриваться в сочетании с ними.
В мире, полном универсалов, NetApp - это специалист. Мы сосредоточены на одном - помочь вашему бизнесу получить максимальную отдачу от ваших данных. NetApp переносит сервисы передачи данных корпоративного уровня, на которые вы полагаетесь, в облако, а простую гибкость облака - в центр обработки данных. Наши ведущие в отрасли решения работают в различных клиентских средах и в крупнейших в мире общедоступных облаках. Как облачная компания, специализирующаяся на разработке программного обеспечения, ориентированного на данные, только NetApp может помочь создать вашу уникальную структуру данных, упростить и подключить ваше облако, а также безопасно доставлять нужные данные, услуги и приложения нужным людям - в любое время и в любом месте.
NetApp, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) |
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|
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April 29,
|
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April 30,
|
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||
|
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|
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ASSETS |
|
|
|
|
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||
|
|
|
|
|
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Current assets: |
|
|
|
|
|
|
||
Cash, cash equivalents and investments |
|
$ |
4,134 |
|
|
$ |
4,596 |
|
Accounts receivable |
|
|
1,230 |
|
|
|
945 |
|
Inventories |
|
|
204 |
|
|
|
114 |
|
Other current assets |
|
|
377 |
|
|
|
346 |
|
Total current assets |
|
|
5,945 |
|
|
|
6,001 |
|
|
|
|
|
|
|
|
||
Property and equipment, net |
|
|
602 |
|
|
|
525 |
|
Goodwill and purchased intangible assets, net |
|
|
2,488 |
|
|
|
2,140 |
|
Other non-current assets |
|
|
991 |
|
|
|
694 |
|
Total assets |
|
$ |
10,026 |
|
|
$ |
9,360 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
607 |
|
|
$ |
420 |
|
Accrued expenses |
|
|
925 |
|
|
|
970 |
|
Current portion of long-term debt |
|
|
250 |
|
|
|
— |
|
Short-term deferred revenue and financed unearned services revenue |
|
|
2,171 |
|
|
|
2,062 |
|
Total current liabilities |
|
|
3,953 |
|
|
|
3,452 |
|
Long-term debt |
|
|
2,386 |
|
|
|
2,632 |
|
Other long-term liabilities |
|
|
788 |
|
|
|
650 |
|
Long-term deferred revenue and financed unearned services revenue |
|
|
2,061 |
|
|
|
1,941 |
|
Total liabilities |
|
|
9,188 |
|
|
|
8,675 |
|
|
|
|
|
|
|
|
||
Stockholders' equity |
|
|
838 |
|
|
|
685 |
|
Total liabilities and stockholders' equity |
|
$ |
10,026 |
|
|
$ |
9,360 |
|
NetApp, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) (Unaudited) |
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|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
April 29, 2022 |
|
|
April 30, 2021 |
|
|
April 29, 2022 |
|
|
April 30, 2021 |
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|
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Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product |
|
$ |
894 |
|
|
$ |
840 |
|
|
$ |
3,284 |
|
|
$ |
2,991 |
|
Services |
|
|
786 |
|
|
|
715 |
|
|
|
3,034 |
|
|
|
2,753 |
|
Net revenues |
|
|
1,680 |
|
|
|
1,555 |
|
|
|
6,318 |
|
|
|
5,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of product |
|
|
446 |
|
|
|
387 |
|
|
|
1,554 |
|
|
|
1,432 |
|
Cost of services |
|
|
145 |
|
|
|
133 |
|
|
|
544 |
|
|
|
497 |
|
Total cost of revenues |
|
|
591 |
|
|
|
520 |
|
|
|
2,098 |
|
|
|
1,929 |
|
Gross profit |
|
|
1,089 |
|
|
|
1,035 |
|
|
|
4,220 |
|
|
|
3,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing |
|
|
480 |
|
|
|
447 |
|
|
|
1,857 |
|
|
|
1,744 |
|
Research and development |
|
|
235 |
|
|
|
221 |
|
|
|
881 |
|
|
|
881 |
|
General and administrative |
|
|
72 |
|
|
|
66 |
|
|
|
279 |
|
|
|
257 |
|
Restructuring charges |
|
|
4 |
|
|
|
— |
|
|
|
33 |
|
|
|
42 |
|
Acquisition-related expense |
|
|
5 |
|
|
|
2 |
|
|
|
13 |
|
|
|
16 |
|
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
|
|
(156 |
) |
Total operating expenses |
|
|
796 |
|
|
|
580 |
|
|
|
3,063 |
|
|
|
2,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from operations |
|
|
293 |
|
|
|
455 |
|
|
|
1,157 |
|
|
|
1,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other expense, net |
|
|
(21 |
) |
|
|
(19 |
) |
|
|
(62 |
) |
|
|
(69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
|
272 |
|
|
|
436 |
|
|
|
1,095 |
|
|
|
962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision for income taxes |
|
|
13 |
|
|
|
102 |
|
|
|
158 |
|
|
|
232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
259 |
|
|
$ |
334 |
|
|
$ |
937 |
|
|
$ |
730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.17 |
|
|
$ |
1.50 |
|
|
$ |
4.20 |
|
|
$ |
3.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted |
|
$ |
1.14 |
|
|
$ |
1.46 |
|
|
$ |
4.09 |
|
|
$ |
3.23 |
|
|
|
|
|
|
|
|
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|
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|
||||
Shares used in net income per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
222 |
|
|
|
222 |
|
|
|
223 |
|
|
|
222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted |
|
|
228 |
|
|
|
229 |
|
|
|
229 |
|
|
|
226 |
|
NetApp, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
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|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
April 29, 2022 |
|
|
April 30, 2021 |
|
|
April 29, 2022 |
|
|
April 30, 2021 |
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
259 |
|
|
$ |
334 |
|
|
$ |
937 |
|
|
$ |
730 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
51 |
|
|
|
48 |
|
|
|
194 |
|
|
|
207 |
|
Non-cash operating lease cost |
|
|
15 |
|
|
|
14 |
|
|
|
55 |
|
|
|
52 |
|
Stock-based compensation |
|
|
66 |
|
|
|
48 |
|
|
|
245 |
|
|
|
197 |
|
Deferred income taxes |
|
|
(78 |
) |
|
|
(5 |
) |
|
|
(144 |
) |
|
|
(6 |
) |
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
|
|
(156 |
) |
Other items, net |
|
|
(19 |
) |
|
|
(11 |
) |
|
|
(54 |
) |
|
|
24 |
|
Changes in assets and liabilities, net of acquisitions of businesses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
(450 |
) |
|
|
(146 |
) |
|
|
(313 |
) |
|
|
62 |
|
Inventories |
|
|
(37 |
) |
|
|
(8 |
) |
|
|
(90 |
) |
|
|
31 |
|
Accounts payable |
|
|
171 |
|
|
|
81 |
|
|
|
181 |
|
|
|
(11 |
) |
Accrued expenses |
|
|
96 |
|
|
|
195 |
|
|
|
(111 |
) |
|
|
134 |
|
Deferred revenue and financed unearned services revenue |
|
|
338 |
|
|
|
183 |
|
|
|
384 |
|
|
|
193 |
|
Long-term taxes payable |
|
|
21 |
|
|
|
(6 |
) |
|
|
(45 |
) |
|
|
(57 |
) |
Changes in other operating assets and liabilities, net |
|
|
(22 |
) |
|
|
(12 |
) |
|
|
(28 |
) |
|
|
(67 |
) |
Net cash provided by operating activities |
|
|
411 |
|
|
|
559 |
|
|
|
1,211 |
|
|
|
1,333 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Redemptions of investments, net |
|
|
9 |
|
|
|
20 |
|
|
|
45 |
|
|
|
160 |
|
Purchases of property and equipment |
|
|
(68 |
) |
|
|
(38 |
) |
|
|
(226 |
) |
|
|
(162 |
) |
Proceeds from sale of properties |
|
|
— |
|
|
|
365 |
|
|
|
— |
|
|
|
371 |
|
Acquisitions of businesses, net of cash acquired |
|
|
(21 |
) |
|
|
— |
|
|
|
(380 |
) |
|
|
(350 |
) |
Other investing activities, net |
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
2 |
|
Net cash (used in) provided by investing activities |
|
|
(80 |
) |
|
|
341 |
|
|
|
(561 |
) |
|
|
21 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Proceeds from issuance of common stock under employee stock award plans |
|
|
— |
|
|
|
6 |
|
|
|
105 |
|
|
|
98 |
|
Payments for taxes related to net share settlement of stock awards |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(74 |
) |
|
|
(42 |
) |
Repurchase of common stock |
|
|
(250 |
) |
|
|
(75 |
) |
|
|
(600 |
) |
|
|
(125 |
) |
Repayments of commercial paper notes, original maturities of three months or less, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(420 |
) |
Issuances of debt, net of issuance costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,057 |
|
Repayments and extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(689 |
) |
Dividends paid |
|
|
(111 |
) |
|
|
(106 |
) |
|
|
(446 |
) |
|
|
(427 |
) |
Other financing activities, net |
|
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
Net cash (used in) provided by financing activities |
|
|
(366 |
) |
|
|
(180 |
) |
|
|
(1,017 |
) |
|
|
444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(23 |
) |
|
|
1 |
|
|
|
(49 |
) |
|
|
71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net change in cash, cash equivalents and restricted cash |
|
|
(58 |
) |
|
|
721 |
|
|
|
(416 |
) |
|
|
1,869 |
|
Cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Beginning of period |
|
|
4,177 |
|
|
|
3,814 |
|
|
|
4,535 |
|
|
|
2,666 |
|
End of period |
|
$ |
4,119 |
|
|
$ |
4,535 |
|
|
$ |
4,119 |
|
|
$ |
4,535 |
|
NetApp, INC. SUPPLEMENTAL DATA (In millions except net income per share, percentages, DSO, DPO and Inventory Turns) (Unaudited) |
||||||||||||||||||||
|
||||||||||||||||||||
In the first quarter of fiscal year 2022, the Company introduced two segments for financial reporting purposes: Hybrid Cloud and Public Cloud. Prior period disclosures have been revised for comparability. |
||||||||||||||||||||
|
||||||||||||||||||||
Revenues by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Product |
|
$ |
894 |
|
|
$ |
846 |
|
|
$ |
840 |
|
|
$ |
3,284 |
|
|
$ |
2,991 |
|
Support |
|
|
590 |
|
|
|
586 |
|
|
|
576 |
|
|
|
2,344 |
|
|
|
2,277 |
|
Professional and Other Services |
|
|
76 |
|
|
|
72 |
|
|
|
73 |
|
|
|
294 |
|
|
|
277 |
|
Hybrid Cloud Segment Net Revenues |
|
|
1,560 |
|
|
|
1,504 |
|
|
|
1,489 |
|
|
|
5,922 |
|
|
|
5,545 |
|
Public Cloud Segment Net Revenues |
|
|
120 |
|
|
|
110 |
|
|
|
66 |
|
|
|
396 |
|
|
|
199 |
|
Net Revenues |
|
$ |
1,680 |
|
|
$ |
1,614 |
|
|
$ |
1,555 |
|
|
$ |
6,318 |
|
|
$ |
5,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross Profit by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Product |
|
$ |
452 |
|
|
$ |
442 |
|
|
$ |
456 |
|
|
$ |
1,743 |
|
|
$ |
1,589 |
|
Support |
|
|
547 |
|
|
|
541 |
|
|
|
525 |
|
|
|
2,160 |
|
|
|
2,076 |
|
Professional and Other Services |
|
|
22 |
|
|
|
26 |
|
|
|
18 |
|
|
|
89 |
|
|
|
71 |
|
Hybrid Cloud Segment Gross Profit |
|
|
1,021 |
|
|
|
1,009 |
|
|
|
999 |
|
|
|
3,992 |
|
|
|
3,736 |
|
Public Cloud Segment Gross Profit |
|
|
82 |
|
|
|
78 |
|
|
|
47 |
|
|
|
278 |
|
|
|
134 |
|
Total Segments Gross Profit |
|
|
1,103 |
|
|
|
1,087 |
|
|
|
1,046 |
|
|
|
4,270 |
|
|
|
3,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of Intangible Assets |
|
|
(10 |
) |
|
|
(9 |
) |
|
|
(7 |
) |
|
|
(33 |
) |
|
|
(41 |
) |
Stock-based Compensation |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(17 |
) |
|
|
(14 |
) |
Unallocated Cost of Revenues |
|
|
(14 |
) |
|
|
(14 |
) |
|
|
(11 |
) |
|
|
(50 |
) |
|
|
(55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross Profit |
|
$ |
1,089 |
|
|
$ |
1,073 |
|
|
$ |
1,035 |
|
|
$ |
4,220 |
|
|
$ |
3,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross Margin by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Product |
|
|
50.6 |
% |
|
|
52.2 |
% |
|
|
54.3 |
% |
|
|
53.1 |
% |
|
|
53.1 |
% |
Support |
|
|
92.7 |
% |
|
|
92.3 |
% |
|
|
91.1 |
% |
|
|
92.2 |
% |
|
|
91.2 |
% |
Professional and Other Services |
|
|
28.9 |
% |
|
|
36.1 |
% |
|
|
24.7 |
% |
|
|
30.3 |
% |
|
|
25.6 |
% |
Hybrid Cloud Segment Gross Margin |
|
|
65.4 |
% |
|
|
67.1 |
% |
|
|
67.1 |
% |
|
|
67.4 |
% |
|
|
67.4 |
% |
Public Cloud Segment Gross Margin |
|
|
68.3 |
% |
|
|
70.9 |
% |
|
|
71.2 |
% |
|
|
70.2 |
% |
|
|
67.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Product Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Total |
|
$ |
894 |
|
|
$ |
846 |
|
|
$ |
840 |
|
|
$ |
3,284 |
|
|
$ |
2,991 |
|
Software* |
|
$ |
530 |
|
|
$ |
507 |
|
|
$ |
480 |
|
|
$ |
1,926 |
|
|
$ |
1,636 |
|
Hardware* |
|
$ |
364 |
|
|
$ |
339 |
|
|
$ |
360 |
|
|
$ |
1,358 |
|
|
$ |
1,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Software and recurring support and public cloud revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Product - Software |
|
$ |
530 |
|
|
$ |
507 |
|
|
$ |
480 |
|
|
$ |
1,926 |
|
|
$ |
1,636 |
|
Support |
|
|
590 |
|
|
|
586 |
|
|
|
576 |
|
|
|
2,344 |
|
|
|
2,277 |
|
Public Cloud |
|
|
120 |
|
|
|
110 |
|
|
|
66 |
|
|
|
396 |
|
|
|
199 |
|
Software and recurring support and public cloud revenue* |
|
$ |
1,240 |
|
|
$ |
1,203 |
|
|
$ |
1,122 |
|
|
$ |
4,666 |
|
|
$ |
4,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Software and recurring support and public cloud revenue as a percentage of net revenues |
|
|
74 |
% |
|
|
75 |
% |
|
|
72 |
% |
|
|
74 |
% |
|
|
72 |
% |
|
||||||||||||||||||||
* Our revenue recognition policy under GAAP defines a configured storage system, inclusive of the operating system software essential to its functionality, as a single performance obligation. We have provided a breakdown of our GAAP product revenues into the software and hardware components, which are considered non-GAAP measures, to display the significance of software included in total product revenues. Software and recurring support and public cloud revenue is a non-GAAP measure because it includes the software component of our product revenues, but not the hardware component. |
||||||||||||||||||||
|
||||||||||||||||||||
Geographic Mix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
% of Q4 FY'22 |
|
|
% of Q3 FY'22 |
|
|
% of Q4 FY'21 |
|
|
% of FY 2022 |
|
|
% of FY 2021 |
|
|||||
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|||||
Americas |
|
|
54 |
% |
|
|
56 |
% |
|
|
53 |
% |
|
|
55 |
% |
|
|
54 |
% |
Americas Commercial |
|
|
45 |
% |
|
|
47 |
% |
|
|
44 |
% |
|
|
45 |
% |
|
|
43 |
% |
U.S. Public Sector |
|
|
9 |
% |
|
|
9 |
% |
|
|
9 |
% |
|
|
10 |
% |
|
|
11 |
% |
EMEA |
|
|
32 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
31 |
% |
|
|
31 |
% |
Asia Pacific |
|
|
14 |
% |
|
|
12 |
% |
|
|
15 |
% |
|
|
14 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pathways Mix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
% of Q4 FY'22 |
|
|
% of Q3 FY'22 |
|
|
% of Q4 FY'21 |
|
|
% of FY 2022 |
|
|
% of FY 2021 |
|
|||||
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|
Revenue |
|
|||||
Direct |
|
|
24 |
% |
|
|
21 |
% |
|
|
23 |
% |
|
|
23 |
% |
|
|
23 |
% |
Indirect |
|
|
76 |
% |
|
|
79 |
% |
|
|
77 |
% |
|
|
77 |
% |
|
|
77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-GAAP Income from Operations, Income before Income Taxes & Effective Tax Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Non-GAAP Income from Operations |
|
$ |
382 |
|
|
$ |
404 |
|
|
$ |
358 |
|
|
$ |
1,496 |
|
|
$ |
1,184 |
|
% of Net Revenues |
|
|
22.7 |
% |
|
|
25.0 |
% |
|
|
23.0 |
% |
|
|
23.7 |
% |
|
|
20.6 |
% |
Non-GAAP Income before Income Taxes |
|
$ |
361 |
|
|
$ |
389 |
|
|
$ |
339 |
|
|
$ |
1,434 |
|
|
$ |
1,123 |
|
Non-GAAP Effective Tax Rate |
|
|
10.2 |
% |
|
|
15.2 |
% |
|
|
20.9 |
% |
|
|
15.7 |
% |
|
|
18.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-GAAP Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Non-GAAP Net Income |
|
$ |
324 |
|
|
$ |
330 |
|
|
$ |
268 |
|
|
$ |
1,209 |
|
|
$ |
917 |
|
Non-GAAP Weighted Average Common Shares Outstanding, Diluted |
|
|
228 |
|
|
|
229 |
|
|
|
229 |
|
|
|
229 |
|
|
|
226 |
|
Non-GAAP Net Income per Share, Diluted |
|
$ |
1.42 |
|
|
$ |
1.44 |
|
|
$ |
1.17 |
|
|
$ |
5.28 |
|
|
$ |
4.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Select Balance Sheet Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
|
|||||||||
Deferred Revenue and Financed Unearned Services Revenue |
|
$ |
4,232 |
|
|
$ |
3,969 |
|
|
$ |
4,003 |
|
|
|
||||||
DSO (days) |
|
|
67 |
|
|
|
45 |
|
|
|
55 |
|
|
|
||||||
DPO (days) |
|
|
93 |
|
|
|
73 |
|
|
|
74 |
|
|
|
||||||
Inventory Turns |
|
|
12 |
|
|
|
13 |
|
|
|
18 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Days sales outstanding (DSO) is defined as accounts receivable divided by net revenues, multiplied by the number of days in the quarter. |
||||||||||||||||||||
Days payables outstanding (DPO) is defined as accounts payable divided by cost of revenues, multiplied by the number of days in the quarter. |
||||||||||||||||||||
Inventory turns is defined as annualized cost of revenues divided by net inventories. |
||||||||||||||||||||
|
||||||||||||||||||||
Select Cash Flow Statement Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Net Cash Provided by Operating Activities |
|
$ |
411 |
|
|
$ |
260 |
|
|
$ |
559 |
|
|
$ |
1,211 |
|
|
$ |
1,333 |
|
Purchases of Property and Equipment |
|
$ |
68 |
|
|
$ |
61 |
|
|
$ |
38 |
|
|
$ |
226 |
|
|
$ |
162 |
|
Free Cash Flow |
|
$ |
343 |
|
|
$ |
199 |
|
|
$ |
521 |
|
|
$ |
985 |
|
|
$ |
1,171 |
|
Free Cash Flow as % of Net Revenues |
|
|
20.4 |
% |
|
|
12.3 |
% |
|
|
33.5 |
% |
|
|
15.6 |
% |
|
|
20.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities less purchases of property and equipment. |
||||||||||||||||||||
NetApp, INC. RECONCILIATION OF NON-GAAP TO GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
NET INCOME |
|
$ |
259 |
|
|
$ |
252 |
|
|
$ |
334 |
|
|
$ |
937 |
|
|
$ |
730 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
14 |
|
|
|
13 |
|
|
|
9 |
|
|
|
46 |
|
|
|
49 |
|
Stock-based compensation |
|
|
66 |
|
|
|
64 |
|
|
|
48 |
|
|
|
245 |
|
|
|
197 |
|
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
5 |
|
Restructuring charges |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
42 |
|
Acquisition-related expense |
|
|
5 |
|
|
|
6 |
|
|
|
2 |
|
|
|
13 |
|
|
|
16 |
|
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
|
|
(156 |
) |
Gain on sale of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
Debt extinguishment costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
Income tax effects |
|
|
(24 |
) |
|
|
(5 |
) |
|
|
18 |
|
|
|
(68 |
) |
|
|
(20 |
) |
Income tax expenses from integration of acquired companies |
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
1 |
|
|
|
46 |
|
NON-GAAP NET INCOME |
|
$ |
324 |
|
|
$ |
330 |
|
|
$ |
268 |
|
|
$ |
1,209 |
|
|
$ |
917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
COST OF REVENUES |
|
$ |
591 |
|
|
$ |
541 |
|
|
$ |
520 |
|
|
$ |
2,098 |
|
|
$ |
1,929 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(10 |
) |
|
|
(9 |
) |
|
|
(7 |
) |
|
|
(33 |
) |
|
|
(41 |
) |
Stock-based compensation |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(17 |
) |
|
|
(14 |
) |
NON-GAAP COST OF REVENUES |
|
$ |
577 |
|
|
$ |
527 |
|
|
$ |
509 |
|
|
$ |
2,048 |
|
|
$ |
1,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
COST OF PRODUCT REVENUES |
|
$ |
446 |
|
|
$ |
407 |
|
|
$ |
387 |
|
|
$ |
1,554 |
|
|
$ |
1,432 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(26 |
) |
Stock-based compensation |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
NON-GAAP COST OF PRODUCT REVENUES |
|
$ |
442 |
|
|
$ |
404 |
|
|
$ |
384 |
|
|
$ |
1,541 |
|
|
$ |
1,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
COST OF SERVICES REVENUES |
|
$ |
145 |
|
|
$ |
134 |
|
|
$ |
133 |
|
|
$ |
544 |
|
|
$ |
497 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(5 |
) |
|
|
(24 |
) |
|
|
(15 |
) |
Stock-based compensation |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
(13 |
) |
|
(10 |
) |
||
NON-GAAP COST OF SERVICES REVENUES |
|
$ |
135 |
|
|
$ |
123 |
|
|
$ |
125 |
|
|
$ |
507 |
|
|
$ |
472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GROSS PROFIT |
|
$ |
1,089 |
|
|
$ |
1,073 |
|
|
$ |
1,035 |
|
|
$ |
4,220 |
|
|
$ |
3,815 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
10 |
|
|
|
9 |
|
|
|
7 |
|
|
|
33 |
|
|
|
41 |
|
Stock-based compensation |
|
|
4 |
|
|
|
5 |
|
|
|
4 |
|
|
|
17 |
|
|
|
14 |
|
NON-GAAP GROSS PROFIT |
|
$ |
1,103 |
|
|
$ |
1,087 |
|
|
$ |
1,046 |
|
|
$ |
4,270 |
|
|
$ |
3,870 |
|
NetApp, INC. RECONCILIATION OF NON-GAAP TO GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
SALES AND MARKETING EXPENSES |
|
$ |
480 |
|
|
$ |
461 |
|
|
$ |
447 |
|
|
$ |
1,857 |
|
|
$ |
1,744 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
(8 |
) |
Stock-based compensation |
|
|
(30 |
) |
|
|
(30 |
) |
|
|
(22 |
) |
|
|
(115 |
) |
|
|
(92 |
) |
NON-GAAP SALES AND MARKETING EXPENSES |
|
$ |
446 |
|
|
$ |
427 |
|
|
$ |
423 |
|
|
$ |
1,729 |
|
|
$ |
1,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
RESEARCH AND DEVELOPMENT EXPENSES |
|
$ |
235 |
|
|
$ |
220 |
|
|
$ |
221 |
|
|
$ |
881 |
|
|
$ |
881 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stock-based compensation |
|
|
(22 |
) |
|
|
(19 |
) |
|
|
(15 |
) |
|
|
(75 |
) |
|
|
(64 |
) |
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES |
|
$ |
213 |
|
|
$ |
201 |
|
|
$ |
206 |
|
|
$ |
806 |
|
|
$ |
817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GENERAL AND ADMINISTRATIVE EXPENSES |
|
$ |
72 |
|
|
$ |
65 |
|
|
$ |
66 |
|
|
$ |
279 |
|
|
$ |
257 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stock-based compensation |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(7 |
) |
|
|
(38 |
) |
|
|
(27 |
) |
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(5 |
) |
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES |
|
$ |
62 |
|
|
$ |
55 |
|
|
$ |
59 |
|
|
$ |
239 |
|
|
$ |
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
RESTRUCTURING CHARGES |
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
33 |
|
|
$ |
42 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restructuring charges |
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(33 |
) |
|
|
(42 |
) |
NON-GAAP RESTRUCTURING CHARGES |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
ACQUISITION-RELATED EXPENSE |
|
$ |
5 |
|
|
$ |
6 |
|
|
$ |
2 |
|
|
$ |
13 |
|
|
$ |
16 |
|
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisition-related expense |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
(16 |
) |
NON-GAAP ACQUISITION-RELATED EXPENSE |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAIN ON SALE OR DERECOGNITION OF ASSETS |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(156 |
) |
|
$ |
— |
|
|
$ |
(156 |
) |
Adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
156 |
|
|
|
— |
|
|
|
156 |
|
NON-GAAP GAIN ON SALE OR DERECOGNITION OF ASSETS |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
OPERATING EXPENSES |
|
$ |
796 |
|
|
$ |
752 |
|
|
$ |
580 |
|
|
$ |
3,063 |
|
|
$ |
2,784 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
(8 |
) |
Stock-based compensation |
|
|
(62 |
) |
|
|
(59 |
) |
|
|
(44 |
) |
|
|
(228 |
) |
|
|
(183 |
) |
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(5 |
) |
Restructuring charges |
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
(33 |
) |
|
|
(42 |
) |
Acquisition-related expense |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
(16 |
) |
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
156 |
|
|
|
— |
|
|
|
156 |
|
NON-GAAP OPERATING EXPENSES |
|
$ |
721 |
|
|
$ |
683 |
|
|
$ |
688 |
|
|
$ |
2,774 |
|
|
$ |
2,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NetApp, INC. RECONCILIATION OF NON-GAAP TO GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
INCOME FROM OPERATIONS |
|
$ |
293 |
|
|
$ |
321 |
|
|
$ |
455 |
|
|
$ |
1,157 |
|
|
$ |
1,031 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
14 |
|
|
|
13 |
|
|
|
9 |
|
|
|
46 |
|
|
|
49 |
|
Stock-based compensation |
|
|
66 |
|
|
|
64 |
|
|
|
48 |
|
|
|
245 |
|
|
|
197 |
|
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
5 |
|
Restructuring charges |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
42 |
|
Acquisition-related expense |
|
|
5 |
|
|
|
6 |
|
|
|
2 |
|
|
|
13 |
|
|
|
16 |
|
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
|
|
(156 |
) |
NON-GAAP INCOME FROM OPERATIONS |
|
$ |
382 |
|
|
$ |
404 |
|
|
$ |
358 |
|
|
$ |
1,496 |
|
|
$ |
1,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
OTHER EXPENSE, NET |
|
$ |
(21 |
) |
|
$ |
(15 |
) |
|
$ |
(19 |
) |
|
$ |
(62 |
) |
|
$ |
(69 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Debt extinguishment costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
Gain on sale of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
NON-GAAP OTHER EXPENSE, NET |
|
$ |
(21 |
) |
|
$ |
(15 |
) |
|
$ |
(19 |
) |
|
$ |
(62 |
) |
|
$ |
(61 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
INCOME BEFORE INCOME TAXES |
|
$ |
272 |
|
|
$ |
306 |
|
|
$ |
436 |
|
|
$ |
1,095 |
|
|
$ |
962 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
14 |
|
|
|
13 |
|
|
|
9 |
|
|
|
46 |
|
|
|
49 |
|
Stock-based compensation |
|
|
66 |
|
|
|
64 |
|
|
|
48 |
|
|
|
245 |
|
|
|
197 |
|
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
5 |
|
Restructuring charges |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
|
|
42 |
|
Acquisition-related expense |
|
|
5 |
|
|
|
6 |
|
|
|
2 |
|
|
|
13 |
|
|
|
16 |
|
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
|
|
(156 |
) |
Debt extinguishment costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
Gain on sale of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
NON-GAAP INCOME BEFORE INCOME TAXES |
|
$ |
361 |
|
|
$ |
389 |
|
|
$ |
339 |
|
|
$ |
1,434 |
|
|
$ |
1,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
PROVISION FOR INCOME TAXES |
|
$ |
13 |
|
|
$ |
54 |
|
|
$ |
102 |
|
|
$ |
158 |
|
|
$ |
232 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax effects |
|
|
24 |
|
|
|
5 |
|
|
|
(18 |
) |
|
|
68 |
|
|
|
20 |
|
Income tax expenses from integration of acquired companies |
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
|
|
(1 |
) |
|
|
(46 |
) |
NON-GAAP PROVISION FOR INCOME TAXES |
|
$ |
37 |
|
|
$ |
59 |
|
|
$ |
71 |
|
|
$ |
225 |
|
|
$ |
206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NET INCOME PER SHARE |
|
$ |
1.14 |
|
|
$ |
1.10 |
|
|
$ |
1.46 |
|
|
$ |
4.09 |
|
|
$ |
3.23 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
0.06 |
|
|
|
0.06 |
|
|
|
0.04 |
|
|
|
0.20 |
|
|
|
0.22 |
|
Stock-based compensation |
|
|
0.29 |
|
|
|
0.28 |
|
|
|
0.21 |
|
|
|
1.07 |
|
|
|
0.87 |
|
Litigation settlements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
Restructuring charges |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
0.14 |
|
|
|
0.19 |
|
Acquisition-related expense |
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.06 |
|
|
|
0.07 |
|
Gain on sale or derecognition of assets |
|
|
— |
|
|
|
— |
|
|
|
(0.68 |
) |
|
|
— |
|
|
|
(0.69 |
) |
Debt extinguishment costs |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|||
Gain on sale of equity investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
Income tax effects |
|
|
(0.11 |
) |
|
|
(0.02 |
) |
|
|
0.08 |
|
|
|
(0.30 |
) |
|
|
(0.09 |
) |
Income tax expenses from integration of acquired companies |
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.20 |
|
NON-GAAP NET INCOME PER SHARE |
|
$ |
1.42 |
|
|
$ |
1.44 |
|
|
$ |
1.17 |
|
|
$ |
5.28 |
|
|
$ |
4.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
RECONCILIATION OF NON-GAAP TO GAAP GROSS MARGIN ($ in millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Gross margin-GAAP |
|
|
64.8 |
% |
|
|
66.5 |
% |
|
|
66.6 |
% |
|
|
66.8 |
% |
|
|
66.4 |
% |
Cost of revenues adjustments |
|
|
0.8 |
% |
|
|
0.9 |
% |
|
|
0.7 |
% |
|
|
0.8 |
% |
|
|
1.0 |
% |
Gross margin-Non-GAAP |
|
|
65.7 |
% |
|
|
67.3 |
% |
|
|
67.3 |
% |
|
|
67.6 |
% |
|
|
67.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP cost of revenues |
|
$ |
591 |
|
|
$ |
541 |
|
|
$ |
520 |
|
|
$ |
2,098 |
|
|
$ |
1,929 |
|
Cost of revenues adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(10 |
) |
|
|
(9 |
) |
|
|
(7 |
) |
|
|
(33 |
) |
|
|
(41 |
) |
Stock-based compensation |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(17 |
) |
|
|
(14 |
) |
Non-GAAP cost of revenues |
|
$ |
577 |
|
|
$ |
527 |
|
|
$ |
509 |
|
|
$ |
2,048 |
|
|
$ |
1,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net revenues |
|
$ |
1,680 |
|
|
$ |
1,614 |
|
|
$ |
1,555 |
|
|
$ |
6,318 |
|
|
$ |
5,744 |
|
RECONCILIATION OF NON-GAAP TO GAAP PRODUCT GROSS MARGIN ($ in millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Product gross margin-GAAP |
|
|
50.1 |
% |
|
|
51.9 |
% |
|
|
53.9 |
% |
|
|
52.7 |
% |
|
|
52.1 |
% |
Cost of product revenues adjustments |
|
|
0.4 |
% |
|
|
0.4 |
% |
|
|
0.4 |
% |
|
|
0.4 |
% |
|
|
1.0 |
% |
Product gross margin-Non-GAAP |
|
|
50.6 |
% |
|
|
52.2 |
% |
|
|
54.3 |
% |
|
|
53.1 |
% |
|
|
53.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP cost of product revenues |
|
$ |
446 |
|
|
$ |
407 |
|
|
$ |
387 |
|
|
$ |
1,554 |
|
|
$ |
1,432 |
|
Cost of product revenues adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(26 |
) |
Stock-based compensation |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
Non-GAAP cost of product revenues |
|
$ |
442 |
|
|
$ |
404 |
|
|
$ |
384 |
|
|
$ |
1,541 |
|
|
$ |
1,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Product revenues |
|
$ |
894 |
|
|
$ |
846 |
|
|
$ |
840 |
|
|
$ |
3,284 |
|
|
$ |
2,991 |
|
RECONCILIATION OF NON-GAAP TO GAAP SERVICES GROSS MARGIN ($ in millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Services gross margin-GAAP |
|
|
81.6 |
% |
|
|
82.6 |
% |
|
|
81.4 |
% |
|
|
82.1 |
% |
|
|
81.9 |
% |
Cost of services revenues adjustments |
|
|
1.3 |
% |
|
|
1.4 |
% |
|
|
1.1 |
% |
|
|
1.2 |
% |
|
|
1.0 |
% |
Services gross margin-Non-GAAP |
|
|
82.8 |
% |
|
|
84.0 |
% |
|
|
82.5 |
% |
|
|
83.3 |
% |
|
|
82.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP cost of services revenues |
|
$ |
145 |
|
|
$ |
134 |
|
|
$ |
133 |
|
|
$ |
544 |
|
|
$ |
497 |
|
Cost of services revenues adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(5 |
) |
|
|
(24 |
) |
|
|
(15 |
) |
Stock-based compensation |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(13 |
) |
|
|
(10 |
) |
Non-GAAP cost of services revenues |
|
$ |
135 |
|
|
$ |
123 |
|
|
$ |
125 |
|
|
$ |
507 |
|
|
$ |
472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Services revenues |
|
$ |
786 |
|
|
$ |
768 |
|
|
$ |
715 |
|
|
$ |
3,034 |
|
|
$ |
2,753 |
|
RECONCILIATION OF NON-GAAP TO GAAP EFFECTIVE TAX RATE |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
GAAP effective tax rate |
|
|
4.8 |
% |
|
|
17.6 |
% |
|
|
23.4 |
% |
|
|
14.4 |
% |
|
|
24.1 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax effects |
|
|
5.5 |
% |
|
|
(2.5 |
)% |
|
|
0.5 |
% |
|
|
1.4 |
% |
|
|
(1.0 |
)% |
Income tax expenses from integration of acquired companies |
|
|
— |
% |
|
|
— |
% |
|
|
(3.0 |
)% |
|
|
(0.1 |
)% |
|
|
(4.8 |
)% |
Non-GAAP effective tax rate |
|
|
10.2 |
% |
|
|
15.2 |
% |
|
|
20.9 |
% |
|
|
15.7 |
% |
|
|
18.3 |
% |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (NON-GAAP) (In millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Net cash provided by operating activities |
|
$ |
411 |
|
|
$ |
260 |
|
|
$ |
559 |
|
|
$ |
1,211 |
|
|
$ |
1,333 |
|
Purchases of property and equipment |
|
|
(68 |
) |
|
|
(61 |
) |
|
|
(38 |
) |
|
|
(226 |
) |
|
|
(162 |
) |
Free cash flow |
|
$ |
343 |
|
|
$ |
199 |
|
|
$ |
521 |
|
|
$ |
985 |
|
|
$ |
1,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
||||||||||||||||||||
RECONCILIATION OF NET REVENUES TO BILLINGS (NON-GAAP) (In millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Q4'FY22 |
|
|
Q3'FY22 |
|
|
Q4'FY21 |
|
|
FY2022 |
|
|
FY2021 |
|
|||||
Net revenues |
|
$ |
1,680 |
|
|
$ |
1,614 |
|
|
$ |
1,555 |
|
|
$ |
6,318 |
|
|
$ |
5,744 |
|
Change in deferred revenue and financed unearned services revenue* |
|
|
338 |
|
|
|
143 |
|
|
|
183 |
|
|
|
384 |
|
|
|
193 |
|
Billings |
|
$ |
2,018 |
|
|
$ |
1,757 |
|
|
$ |
1,738 |
|
|
$ |
6,702 |
|
|
$ |
5,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
* As reported on our Condensed Consolidated Statements of Cash Flows |
|
|||||||||||||||||||
| NetApp, INC.
RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP EXPRESSED AS EARNINGS PER SHARE FIRST QUARTER FISCAL 2023 |
||
|
||
|
|
First Quarter |
|
|
Fiscal 2023 |
|
|
|
Non-GAAP Guidance - Net Income Per Share |
|
$1.05 - $1.15 |
|
|
|
Adjustments of Specific Items to Net Income |
|
|
Per Share for the First Quarter Fiscal 2023: |
|
|
Amortization of intangible assets |
|
($0.08) |
Stock-based compensation expense |
|
($0.30) |
Income tax effects |
|
$0.05 |
Total Adjustments |
|
($0.33) |
|
|
|
GAAP Guidance - Net Income Per Share |
|
$0.72 - $0.82 |
Some items may not add or recalculate due to rounding. |
||
NetApp, INC. RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP FISCAL 2023 (Unaudited) |
||
|
||
|
|
Fiscal 2023 |
|
|
|
Gross Margin - Non-GAAP Guidance |
|
66% - 67% |
Adjustment: |
|
|
Cost of revenues adjustments |
|
(1)% |
Gross Margin - GAAP Guidance |
|
65% - 66% |
|
|
|
|
|
Fiscal 2023 |
|
|
|
Operating Margin - Non-GAAP Guidance |
|
23% - 24% |
Adjustments: |
|
|
Amortization of intangible assets |
|
(1)% |
Stock-based compensation expense |
|
(4)% |
Operating Margin - GAAP Guidance |
|
18% - 19% |
|
|
|
|
|
Fiscal 2023 |
|
|
|
Effective Tax Rate - Non-GAAP Guidance |
|
21% - 22% |
Adjustment: |
|
|
Income tax effects |
|
3% |
Effective Tax Rate - GAAP Guidance |
|
24% - 25% |
|
|
|
Some items may not add or recalculate due to rounding. |
||
NetApp, INC. RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP EXPRESSED AS EARNINGS PER SHARE FISCAL 2023 |
||
|
||
|
|
Fiscal 2023 |
|
|
|
Non-GAAP Guidance - Net Income Per Share |
|
$5.40 - $5.60 |
|
|
|
Adjustments of Specific Items to Net Income |
|
|
Per Share for Fiscal 2023: |
|
|
Amortization of intangible assets |
|
($0.30) |
Stock-based compensation expense |
|
($1.33) |
Income tax effects |
|
$0.19 |
Total Adjustments |
|
($1.44) |
|
|
|
GAAP Guidance - Net Income Per Share |
|
$3.96 - $4.16 |
|
|
|
Some items may not add or recalculate due to rounding. |
||
