Network Appliance, Inc. (NASDAQ: NTAP), the leader in advanced networked storage solutions, announced preliminary results for the first quarter of FY2008. Revenues are expected to be in the range of $684 to $688 million, down approximately 14% to 15% sequentially from the fourth quarter of FY2007 and up approximately 10% to 11% over the same quarter one year ago. GAAP net income per share is expected to be in the range of $0.08 to $0.09 and non-GAAP (1) net income per share is expected to be in the range of $0.19 to $0.20.
These preliminary results are below the company's previously stated targets issued on May 23, 2007 for a sequential revenue decrease of 6% to 7%, which equates to approximately $745 to $753 million in revenue, and for GAAP net income per share of $0.14 and $0.15, and non-GAAP net income per share of $0.24 to $0.25. Network Appliance hosted a conference call on August 2 to discuss these preliminary results. The final results of the first quarter of fiscal year 2008 will be announced on August 15, 2007, after the close of market.
"We are disappointed with our Q1 results. We believe our performance was impacted by some continued softness in enterprise storage spending, most notably in our existing customer accounts in the U.S. and parts of Europe," said Dan Warmenhoven, CEO of Network Appliance. "However, these same enterprise customers who have slowed their spending tell us that our value proposition remains the best in the industry and we did not see any decline in our competitive win rates."
A replay of the conference call will be available for 72 hours following the completion of the live call by dialing 001 617 801-6888, using replay code 16526483. The Webcast replay will be posted on the NetApp Website for at least one year.
(1) Non-GAAP results exclude amortization of intangible assets, in-process research and development, stock compensation, other acquisition-related cost, restructuring charges/recoveries, gain/loss on sales of assets and investments, certain other nonrecurring events, and the related effects on income taxes as well as certain discrete GAAP provisions for income tax matters recognized ratably for non-GAAP purposes.
These preliminary results are below the company's previously stated targets issued on May 23, 2007 for a sequential revenue decrease of 6% to 7%, which equates to approximately $745 to $753 million in revenue, and for GAAP net income per share of $0.14 and $0.15, and non-GAAP net income per share of $0.24 to $0.25. Network Appliance hosted a conference call on August 2 to discuss these preliminary results. The final results of the first quarter of fiscal year 2008 will be announced on August 15, 2007, after the close of market.
"We are disappointed with our Q1 results. We believe our performance was impacted by some continued softness in enterprise storage spending, most notably in our existing customer accounts in the U.S. and parts of Europe," said Dan Warmenhoven, CEO of Network Appliance. "However, these same enterprise customers who have slowed their spending tell us that our value proposition remains the best in the industry and we did not see any decline in our competitive win rates."
A replay of the conference call will be available for 72 hours following the completion of the live call by dialing 001 617 801-6888, using replay code 16526483. The Webcast replay will be posted on the NetApp Website for at least one year.
(1) Non-GAAP results exclude amortization of intangible assets, in-process research and development, stock compensation, other acquisition-related cost, restructuring charges/recoveries, gain/loss on sales of assets and investments, certain other nonrecurring events, and the related effects on income taxes as well as certain discrete GAAP provisions for income tax matters recognized ratably for non-GAAP purposes.
