NetApp reported financial results for the first quarter of fiscal year 2019, which ended July 27, 2018.
“We delivered a very strong first quarter with revenue, gross margin, operating margin, and earnings per share all above our guidance. In Q1, we introduced substantial innovation across our portfolio, expanding our industry-leading cloud data services and introducing new partnerships, products and solutions to help data-driven organizations thrive,” said George Kurian, chief executive officer. “Enterprises are signaling strong confidence in NetApp by making long-term investments to enable the NetAppTM Data Fabric across their entire enterprise.”
First Quarter Fiscal Year 2019 Financial Results
• Net Revenues: $1.47 billion, increased 12% year-over-year from $1.32 billion* in the first quarter of fiscal 2018
• Net Income: GAAP net income of $283 million, compared to GAAP net income of $131 million* in the first quarter of fiscal 2018; non-GAAP net income1 of $281 million, compared to non-GAAP net income of $166 million* in the first quarter of fiscal 2018
• Earnings per Share: GAAP earnings per share2 of $1.05 compared to GAAP earnings per share of $0.47* in the first quarter of fiscal 2018; non-GAAP earnings per share of $1.04, compared to non-GAAP earnings per share of $0.60* in the first quarter of fiscal 2018
• Cash, Cash Equivalents and Investments: $4.8 billion at the end of the first quarter of fiscal 2019
• Cash from Operations: $326 million, compared to $250 million in the first quarter of fiscal 2018
• Share Repurchase and Dividend: Returned $605 million to shareholders through share repurchases and cash dividends
* In the first quarter of fiscal 2019, NetApp adopted Revenue from Contracts with Customers (ASC 606), a new accounting standard which establishes a comprehensive new revenue recognition model designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The full retrospective method of adoption was employed. Accordingly, NetApp’s condensed consolidated balance sheet as of April 27, 2018, condensed consolidated statements of operations and cash flows for all prior periods presented, and all related financial statement metrics included herein, have been restated to conform to the new rules. The adoption of the standard had no impact to cash provided by or used in operating, investing or financing activities as presented on the condensed consolidated statement of cash flows.
Second Quarter Fiscal Year 2019 Financial Outlook
The Company provided the following financial guidance for the second quarter of fiscal year 2019:
• Net revenues are expected to be in the range of $1.450 billion to $1.550 billion
• Earnings per share is expected to be in the range of: GAAP: $0.79-$0.85, Non-GAAP: $0.94-$1.00.
Next cash dividend of $0.40 per share to be paid on October 24, 2018, to shareholders of record as of the close of business on October 5, 2018.
First Quarter Fiscal Year 2019 Business Highlights
NetApp Expands the Industry's Most Complete Cloud Data Services
Azure NetApp Files is now available in public preview. Jointly developed by Microsoft and NetApp, Azure NetApp Files is a native Azure service powered by NetApp’s leading ONTAP technology and storage expertise.
NetApp announced NetApp Cloud Volumes Services for Google Cloud Platform offering customers a fully-managed, cloud-native file storage service that is integrated with Google Cloud Platform.
New Products and Solutions that will Help Data-Driven Organizations Thrive
NetApp introduced the AFF A800 array, a high performance, cloud-connected flash system to power artificial intelligence and compute-intensive applications. The NetApp AFF A800 is the first available end-to-end NVMe enterprise grade all flash array and boasts the industry’s first support of 30TB solid state drives.
The latest update to our flagship NetApp ONTAPTM9 software includes enhancements to FabricPool and improves hybrid cloud data tiering and adds support for Microsoft Azure. ONTAP will automatically move inactive data to a lower-cost storage tier to save money and bring data back when needed.
NetApp Active IQTM technology provides new cloud-based analytics for all NetApp systems that predicts future performance needs and identifies unprotected data to optimize operations.
NetApp StorageGRID object-based storage solution now provides superior next-generation, cloud-architected infrastructure for financial and personal data retention compliance as one integrated resource across public and private clouds.
Cisco and NetApp Simplify the Delivery of Cloud Infrastructure and Industry-Specific Applications
The new Managed Private Cloud solution built on FlexPodTM enables customers to realize a cloud-like, As-a-Service model for their on-premises IT with remote management, securing critical customer data and advancing cloud-capabilities for both partners and their customers.
New FlexPod industry solutions provide a proven platform to quickly deploy key applications across industries that are challenged by the increasingly diverse, dynamic and distributed nature of data. The initial industry solution, FlexPod Datacenter for Epic EHR, simplifies IT infrastructure for healthcare customers, helping them move faster and improve patient care.
Recognition for Industry Leading Products
NetApp all-flash array technology was recognized as a Leader in Gartner’s 2018 Magic Quadrant for Solid-State Arrays.3 NetApp has improved its position in the Leaders Quadrant with a higher rating for its ability to execute.
NetApp StorageGRID named a Leader in IDC’s MarketScape for Object-Based Storage.4 IDC recognizes the strength of applying StorageGRID capabilities across our broader NetApp portfolio, and specifically praises a few capabilities in the report, including integration with NetApp FabricPool technology.
According to a new Storage Performance Council SPC-1 Result,5 tests of the AFF A800 system places it as number 1 overall in terms of SPC-1 Response Time and makes it the top-performing enterprise all-flash array among the industry’s leading storage providers. The AFF A800 is also in the top 4 on the SPC-1 Performance list. The SPC-1 tests of the AFF A800 were conducted with compression and deduplication enabled, just as they would be under real-world conditions.
Press release by NetApp