SUNNYVALE, CA —NetApp (NASDAQ: NTAP) reported financial results for the third quarter of fiscal year 2019, which ended January 25, 2019.
“Although I am disappointed that revenue came in at the low-end of our guidance range, we continue to demonstrate discipline in how we manage the business. We are playing into the big market transitions from a position of strength and are focused on execution to maximize our opportunity in an uncertain macroeconomic environment,” said George Kurian, chief executive officer. “Our flash, hybrid cloud infrastructure, and AI solutions are serving as pillars of customers’ new architectures and we are seeing adoption of our cloud offerings as part of our customers’ foundation for moving applications and data to the cloud. We have conviction in our strategy to drive long-term growth.”
Third Quarter Fiscal Year 2019 Financial Results
- Net Revenues: $1.56 billion, increased 2% year-over-year from $1.54 billion* in the third quarter of fiscal 2018
- Net Income: GAAP net income of $249 million, compared to GAAP net loss of $479 million*1 in the third quarter of fiscal 2018; non-GAAP net income2 of $305 million, compared to non-GAAP net income of $289 million* in the third quarter of fiscal 2018
- Earnings per Share: GAAP net income per share3 of $0.98 compared to GAAP net loss per share4 of $1.79*1 in the third quarter of fiscal 2018; non-GAAP net income per share of $1.20, compared to non-GAAP net income per share of $1.05* in the third quarter of fiscal 2018
- Cash, Cash Equivalents and Investments: $4.0 billion at the end of the third quarter of fiscal 2019
- Cash from Operations: $451 million, compared to $420 million in the third quarter of fiscal 2018
- Share Repurchase and Dividend: Returned $649 million to shareholders through share repurchases and cash dividends
* In the first quarter of fiscal 2019, NetApp adopted Revenue from Contracts with Customers (ASC 606) using the full retrospective method of adoption. Accordingly, NetApp’s condensed consolidated balance sheet as of April 27, 2018, condensed consolidated statements of operations and cash flows for all fiscal 2018 periods presented, and all related financial statement metrics included herein, have been restated to conform to the new rules.
Fourth Quarter Fiscal Year 2019 Financial Outlook
The Company provided the following financial guidance for the fourth quarter of fiscal year 2019:
||$1.590 billion to $1.690 billion|
Next cash dividend of $0.40 per share to be paid on April 24, 2019, to shareholders of record as of the close of business on April 5, 2019.
Third Quarter Fiscal Year 2019 Business Highlights
New World-Class Products and Solutions Help Manage Data Demands
- NetApp announced new data services and solutions that empower customers to innovate in the cloud. These new offerings include the expanded availability of the Microsoft Azure NetAppTM Files preview.
- NetApp announced NetApp ElementTM 11.0 software, which introduces new functionality for their NetApp HCI customers with Protection Domains. In addition, Element 11.0 has the ability to manage storage clusters running Element software on IPv6 networks, 16TiB volume support, and QoS histograms to help understand the user’s environment.
NetApp Strengthens Strategic Partnerships
- NetApp announced NetApp Cloud Volumes Service for Google Cloud Platform will soon be available in Europe to help even more customers handle the configuring and managing of their storage infrastructures.
- NetApp announced VMware Validated Design for Private Cloud with NetApp HCI, NetApp Verified Architecture for VMware End-User Computing with NetApp HCI and NVIDIA GPUs and NetApp Technical Report for Object Storage with NetApp HCI.
Recognition for Industry Leading Products
- NetApp’s AFF A800 took the top spot in the latest SPEC SFS2014 swbuild Result5 at the time of publication in Nov 2018. The AFF A800 delivered performance that was 3 times as fast as the nearest competitor. These results also highlighted the fact that ONTAPTM with FlexGroup volumes can do more work at lower latenciesand higher throughput.