NetApp Reports Third Quarter of Fiscal Year 2020 Results

February 13, 2020

SUNNYVALE, Calif., Feb. 13, 2020 — NetApp today reported financial results for the third quarter of fiscal year 2020, which ended on January 24, 2020.

“Our third quarter results, highlighted by strong gross margins, cash flow and operating leverage, reflect our continued operational discipline. Customers are on a journey to the cloud and are looking to NetApp to help them address the complexities of data management in hybrid multicloud,” said George Kurian, chief executive officer. “We see significant opportunity ahead and are focused on replicating the areas where we have proven success. Our strong business model enables us to navigate the market dynamics, while making the strategic investments necessary to position the company for long-term growth.”

Third Quarter of Fiscal Year 2020 Financial Results

  • Net Revenues: $1.40 billion, compared to $1.56 billion in the third quarter of fiscal 2019
  • Net Income: GAAP net income of $277 million, compared to GAAP net income of $249 million in the third quarter of fiscal 2019; non-GAAP net income1 of $265 million, compared to non-GAAP net income of $305 million in the third quarter of fiscal 2019
  • Earnings per Share: GAAP net income per share2 of $1.21 compared to GAAP net income per share of $0.98 in the third quarter of fiscal 2019; non-GAAP net income per share of $1.16, compared to non-GAAP net income per share of $1.20 in the third quarter of fiscal 2019
  • Cash, Cash Equivalents and Investments: $3.0 billion at the end of the third quarter of fiscal 2020
  • Cash Provided by Operations: $420 million, compared to $451 million in the third quarter of fiscal 2019
  • Share Repurchase and Dividend: Returned $608 million to shareholders through share repurchases and cash dividends

Organizational Update

Ron Pasek, EVP, Chief Financial Officer, has informed NetApp of his intent to retire by the end of the fiscal year after a successful four-year tenure. Pasek will remain on to ensure a transition to his successor, which the Company expects to name prior to the end of the fiscal year. Pasek joined NetApp in April 2016, assuming leadership of the company’s finance, customer leasing, workplace resources, internal audit, and IT functions. “Ron has been an integral part of the NetApp executive leadership team. He has helped increase product margins by 10 points, nearly doubled our earnings power and raised our dividend by over 100%,” said George Kurian, chief executive officer. “We are grateful for Ron’s achievements at NetApp and wish him well in his future endeavors.”

Fourth Quarter of Fiscal Year 2020 Financial Outlook
The Company provided the following financial guidance for the fourth quarter of fiscal year 2020:

  • Net revenues are expected to be in the range of:
$1.455 billion to $1.605 billion
GAAP Non-GAAP
  • Earnings per share is expected to be in the range of:
$1.11 – $1.19 $1.28 – $1.36

Full Fiscal Year 2020 Financial Outlook
The Company updated the following financial guidance for the full fiscal year 2020:

  • Net revenues are expected to decline approximately 10% year-over-year
GAAP Non-GAAP
  • Consolidated gross margins are expected to be in the range of:
66% – 67% 67% – 68%
  • Operating margins are expected to be:
~18% ~21%
  • GAAP earnings per share is expected to decline approximately 16% year-over-year, while Non-GAAP earnings per share is expected to decline approximately 7% year-over-year

Dividend

Next cash dividend of $0.48 per share to be paid on April 22, 2020, to shareholders of record as of the close of business on April 3, 2020.

Third Quarter of Fiscal Year 2020 Business Highlights

Consistently Delivering Groundbreaking Innovations

  • NetApp announced its reinvention of the customer experience with the NetApp Keystone program which offers a range of flexible solutions for customers, whether they choose to build or to buy their cloud infrastructure, on or off their premises.
  • To meet the increasing demand for object storage, NetApp announced new NetApp StorageGRID enhancements: StorageGRID 11.3 software, SGF6024 all-flash appliance, SG6060 expansion appliance, SG1000 service appliance, and StorageGRID tiering to Azure Blob storage.
  • NetApp Cloud Manager 3.7.5 (formerly OnCommand Cloud Manager) offers new features and tighter integration with the NetApp cloud portfolio which enables customers to get more out of their data.
  • NetApp enhanced NetApp Cloud Volumes ONTAP for AWS with new NetApp Cloud Backup Service, the new NetApp Cloud Compliance service, and the ability to leverage NVMe flash available on virtual compute instances.
  • NetApp has expanded its multiprotocol file services to encompass NFSv4.1, NFSv3, and SMB for both Azure NetApp Files and NetApp Cloud Volumes Service for AWS. With this expansion, NetApp now delivers the widest range of support for Microsoft Windows and Linux workloads.
  • NetApp introduced new storage systems: the NetApp AFF A400 end-to-end NVMe all-flash system, the NetApp FAS8700 high-end hybrid flash array, and the FAS8300 next-generation midrange hybrid flash array.
  • NetApp ONTAP 9.7 offers expanded integration of hybrid cloud, with seamless and efficient migration of tiered data between private and public clouds by using FabricPool, symmetric active-active host-to-LUN access, and extended scale-out NAS deployments.
  • Three new features for NetApp Cloud Insights were announced, including Kubernetes Topology VisualizationNetApp Cloud Secure Insider Threat Detection, and NetApp Active IQ Integration.
  • NetApp Active IQ Unified Manager 9.7 (formerly OnCommand Unified Manager) delivers enhanced simplicity, automation, active management, and virtualization layer monitoring and reporting, along with strengthened dark site support.
  • With the release of NetApp ONTAP Select 9.7, NetApp has introduced support for software RAID configurations backed by NVMe drives.
  • NetApp announced that NFS-based NetApp Cloud Volumes has been added to its cloud services offerings on premises in preview mode.

Growing Partnerships and Distinguished Awards

  • NetApp and Google Cloud announced an expanded partnership, including the general availability of NetApp Cloud Volumes ONTAP and Cloud Volumes Service for Google Cloud. The expansion also includes the availability of Cloud Volumes Service in the U.K. region and support for Anthos on Cloud Volumes ONTAPCloud Volumes Service, and NetApp HCI.
  • Enterprise Networking Solutions, Inc. (ENS-Inc.) was granted a 3-year contract by the State of California Department of General Services to deliver NetApp data center modernization and hybrid cloud infrastructure solutions to the State of California.
  • NetApp and NVIDIA unveiled the NVIDIA DGX SuperPOD, which helps simplify supercomputing and enables AI for high-performance computing (HPC) teams. NetApp and NVIDIA also announced their collaboration on the NVIDIA Magnum IO, a multi-GPU, multinode networking and storage I/O optimization stack.
  • NetApp was named a leader of Scale-Out NAS (File-Based Storage) in the IDC MarketScape: Worldwide Scale-Out File-Based Storage 2019 Vendor Assessment.3
  • NetApp was again named a leader in object storage in the IDC MarketScape: Worldwide Object-Based Storage 2019 Vendor Assessment.4

NetApp Executive Team Grows with the Company

  • NetApp appointed James Whitemore as the Company’s senior vice president and chief marketing officer, reporting to CEO George Kurian.
  • NetApp appointed Kim Stevenson as senior vice president and general manager of the NetApp Foundational Data Services business unit, reporting to Brad Anderson.

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.

1Non-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, and (h) 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 the measurements provide meaningful supplemental information regarding NetApp’s ongoing operational performance.

2GAAP net income per share and non-GAAP net income per share are calculated using the diluted number of shares.

3NetApp was named a leader of Scale-Out NAS (File-Based Storage) in the IDC MarketScape: Worldwide Scale-Out File-Based Storage 2019 Vendor Assessment, https://www.netapp.com/us/media/ar-idc-marketscape-worldwide-scale-out-vendor-assessment.pdf.

4NetApp was named a leader in object storage in the IDC MarketScape: Worldwide Object-Based Storage 2019 Vendor Assessment, https://www.netapp.com/us/media/idc-marketscape-worldwide-object-based-storage-2019-vendor-assessment.pdf.

About NetApp

NetApp is the leader in cloud data services, empowering global organizations to change their world with data. Together with our partners, we are the only ones who can help you build your unique data fabric. Simplify hybrid multicloud and securely deliver the right data, services and applications to the right people at the right time. Learn more at www.netapp.com.


Source: NetApp 

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Supercomputer Simulations Validate NASA Crash Testing

February 17, 2020

Car crash simulation is already a challenging supercomputing task, requiring pinpoint estimation of how hundreds of components interact with turbulent forces and human bodies. Spacecraft crash simulation is far more diff Read more…

By Oliver Peckham

What’s New in HPC Research: Quantum Clouds, Interatomic Models, Genetic Algorithms & More

February 14, 2020

In this bimonthly feature, HPCwire highlights newly published research in the high-performance computing community and related domains. From parallel programming to exascale to quantum computing, the details are here. Read more…

By Oliver Peckham

The Massive GPU Cloudburst Experiment Plays a Smaller, More Productive Encore

February 13, 2020

In November, researchers at the San Diego Supercomputer Center (SDSC) and the IceCube Particle Astrophysics Center (WIPAC) set out to break the internet – or at least, pull off the cloud HPC equivalent. As part of thei Read more…

By Oliver Peckham

ORNL Team Develops AI-based Cancer Text Mining Tool on Summit

February 13, 2020

A group of Oak Ridge National Laboratory researchers working on the Summit supercomputer has developed a new neural network tool for fast extraction of information from cancer pathology reports to speed research and clin Read more…

By John Russell

Nature Serves up Another Challenge to Quantum Computing?

February 13, 2020

Just when you thought it was safe to assume quantum computing – though distant – would eventually succumb to clever technology, another potentially confounding factor pops up. It’s the Heisenberg Limit (HL), close Read more…

By John Russell

AWS Solution Channel

Challenging the barriers to High Performance Computing in the Cloud

Cloud computing helps democratize High Performance Computing by placing powerful computational capabilities in the hands of more researchers, engineers, and organizations who may lack access to sufficient on-premises infrastructure. Read more…

IBM Accelerated Insights

Intelligent HPC – Keeping Hard Work at Bay(es)

Since the dawn of time, humans have looked for ways to make their lives easier. Over the centuries human ingenuity has given us inventions such as the wheel and simple machines – which help greatly with tasks that would otherwise be extremely laborious. Read more…

Researchers Enlist Three Supercomputers to Apply Deep Learning to Extreme Weather

February 12, 2020

When it comes to extreme weather, an errant forecast can have serious effects. While advance warning can give people time to prepare for the weather as it did with the polar vortex last year, the absence of accurate adva Read more…

By Oliver Peckham

The Massive GPU Cloudburst Experiment Plays a Smaller, More Productive Encore

February 13, 2020

In November, researchers at the San Diego Supercomputer Center (SDSC) and the IceCube Particle Astrophysics Center (WIPAC) set out to break the internet – or Read more…

By Oliver Peckham

Eni to Retake Industry HPC Crown with Launch of HPC5

February 12, 2020

With the launch of its Dell-built HPC5 system, Italian energy company Eni regains its position atop the industrial supercomputing leaderboard. At 52-petaflops p Read more…

By Tiffany Trader

Trump Budget Proposal Again Slashes Science Spending

February 11, 2020

President Donald Trump’s FY2021 U.S. Budget, submitted to Congress this week, again slashes science spending. It’s a $4.8 trillion statement of priorities, Read more…

By John Russell

Policy: Republicans Eye Bigger Science Budgets; NSF Celebrates 70th, Names Idea Machine Winners

February 5, 2020

It’s a busy week for science policy. Yesterday, the National Science Foundation announced winners of its 2026 Idea Machine contest seeking directions for futu Read more…

By John Russell

Fujitsu A64FX Supercomputer to Be Deployed at Nagoya University This Summer

February 3, 2020

Japanese tech giant Fujitsu announced today that it will supply Nagoya University Information Technology Center with the first commercial supercomputer powered Read more…

By Tiffany Trader

Intel Stopping Nervana Development to Focus on Habana AI Chips

February 3, 2020

Just two months after acquiring Israeli AI chip start-up Habana Labs for $2 billion, Intel is stopping development of its existing Nervana neural network proces Read more…

By John Russell

Lise Supercomputer, Part of HLRN-IV, Begins Operations

January 29, 2020

The second phase of the build-out of HLRN-IV – the planned 16 peak-petaflops supercomputer serving the North-German Supercomputing Alliance (HLRN) – is unde Read more…

By Staff report

IBM Debuts IC922 Power Server for AI Inferencing and Data Management

January 28, 2020

IBM today launched a Power9-based inference server – the IC922 – that features up to six Nvidia T4 GPUs, PCIe Gen 4 and OpenCAPI connectivity, and can accom Read more…

By John Russell

Julia Programming’s Dramatic Rise in HPC and Elsewhere

January 14, 2020

Back in 2012 a paper by four computer scientists including Alan Edelman of MIT introduced Julia, A Fast Dynamic Language for Technical Computing. At the time, t Read more…

By John Russell

Cray, Fujitsu Both Bringing Fujitsu A64FX-based Supercomputers to Market in 2020

November 12, 2019

The number of top-tier HPC systems makers has shrunk due to a steady march of M&A activity, but there is increased diversity and choice of processing compon Read more…

By Tiffany Trader

SC19: IBM Changes Its HPC-AI Game Plan

November 25, 2019

It’s probably fair to say IBM is known for big bets. Summit supercomputer – a big win. Red Hat acquisition – looking like a big win. OpenPOWER and Power processors – jury’s out? At SC19, long-time IBMer Dave Turek sketched out a different kind of bet for Big Blue – a small ball strategy, if you’ll forgive the baseball analogy... Read more…

By John Russell

Intel Debuts New GPU – Ponte Vecchio – and Outlines Aspirations for oneAPI

November 17, 2019

Intel today revealed a few more details about its forthcoming Xe line of GPUs – the top SKU is named Ponte Vecchio and will be used in Aurora, the first plann Read more…

By John Russell

Dell Ramps Up HPC Testing of AMD Rome Processors

October 21, 2019

Dell Technologies is wading deeper into the AMD-based systems market with a growing evaluation program for the latest Epyc (Rome) microprocessors from AMD. In a Read more…

By John Russell

IBM Unveils Latest Achievements in AI Hardware

December 13, 2019

“The increased capabilities of contemporary AI models provide unprecedented recognition accuracy, but often at the expense of larger computational and energet Read more…

By Oliver Peckham

SC19: Welcome to Denver

November 17, 2019

A significant swath of the HPC community has come to Denver for SC19, which began today (Sunday) with a rich technical program. As is customary, the ribbon cutt Read more…

By Tiffany Trader

D-Wave’s Path to 5000 Qubits; Google’s Quantum Supremacy Claim

September 24, 2019

On the heels of IBM’s quantum news last week come two more quantum items. D-Wave Systems today announced the name of its forthcoming 5000-qubit system, Advantage (yes the name choice isn’t serendipity), at its user conference being held this week in Newport, RI. Read more…

By John Russell

Leading Solution Providers

SC 2019 Virtual Booth Video Tour

AMD
AMD
ASROCK RACK
ASROCK RACK
AWS
AWS
CEJN
CJEN
CRAY
CRAY
DDN
DDN
DELL EMC
DELL EMC
IBM
IBM
MELLANOX
MELLANOX
ONE STOP SYSTEMS
ONE STOP SYSTEMS
PANASAS
PANASAS
SIX NINES IT
SIX NINES IT
VERNE GLOBAL
VERNE GLOBAL
WEKAIO
WEKAIO

Jensen Huang’s SC19 – Fast Cars, a Strong Arm, and Aiming for the Cloud(s)

November 20, 2019

We’ve come to expect Nvidia CEO Jensen Huang’s annual SC keynote to contain stunning graphics and lively bravado (with plenty of examples) in support of GPU Read more…

By John Russell

Fujitsu A64FX Supercomputer to Be Deployed at Nagoya University This Summer

February 3, 2020

Japanese tech giant Fujitsu announced today that it will supply Nagoya University Information Technology Center with the first commercial supercomputer powered Read more…

By Tiffany Trader

51,000 Cloud GPUs Converge to Power Neutrino Discovery at the South Pole

November 22, 2019

At the dead center of the South Pole, thousands of sensors spanning a cubic kilometer are buried thousands of meters beneath the ice. The sensors are part of Ic Read more…

By Oliver Peckham

Top500: US Maintains Performance Lead; Arm Tops Green500

November 18, 2019

The 54th Top500, revealed today at SC19, is a familiar list: the U.S. Summit (ORNL) and Sierra (LLNL) machines, offering 148.6 and 94.6 petaflops respectively, Read more…

By Tiffany Trader

Azure Cloud First with AMD Epyc Rome Processors

November 6, 2019

At Ignite 2019 this week, Microsoft's Azure cloud team and AMD announced an expansion of their partnership that began in 2017 when Azure debuted Epyc-backed instances for storage workloads. The fourth-generation Azure D-series and E-series virtual machines previewed at the Rome launch in August are now generally available. Read more…

By Tiffany Trader

Intel’s New Hyderabad Design Center Targets Exascale Era Technologies

December 3, 2019

Intel's Raja Koduri was in India this week to help launch a new 300,000 square foot design and engineering center in Hyderabad, which will focus on advanced com Read more…

By Tiffany Trader

In Memoriam: Steve Tuecke, Globus Co-founder

November 4, 2019

HPCwire is deeply saddened to report that Steve Tuecke, longtime scientist at Argonne National Lab and University of Chicago, has passed away at age 52. Tuecke Read more…

By Tiffany Trader

Cray Debuts ClusterStor E1000 Finishing Remake of Portfolio for ‘Exascale Era’

October 30, 2019

Cray, now owned by HPE, today introduced the ClusterStor E1000 storage platform, which leverages Cray software and mixes hard disk drives (HDD) and flash memory Read more…

By John Russell

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This