NetApp Reports First Quarter Fiscal Year 2018 Results

Net Revenues of $1.33 Billion; Up 2% Year-over-Year

• Product revenue increased 10% year-over-year.
• All-flash array annualized net revenue run rate grew 95% year-over-year.
• GAAP EPS of $0.49 and non-GAAP EPS of $0.62; up year-over-year 113% and 35%, respectively.

Sunnyvale, Calif.—August 16, 2017—NetApp (NASDAQ: NTAP) today reported financial results for the first quarter fiscal year 2018, ended July 28, 2017.
First Quarter Financial Results
Net revenues for the first quarter of fiscal year 2018 were $1.33 billion, compared to net revenues of $1.29 billion for the comparable period of the prior year. GAAP net income for the first quarter of fiscal year 2018 was $136 million, or $0.49 per share,[1] compared to GAAP net income of $64 million, or $0.23 per share, for the comparable period of the prior year. Non-GAAP net income for the first quarter of fiscal year 2018 was $173 million, or $0.62 per share,[2] compared to non-GAAP net income of $129 million, or $0.46 per share, for the comparable period of the prior year.
Cash, Cash Equivalents and Investments
NetApp ended the first quarter of fiscal year 2018 with $5.3 billion in total cash, cash equivalents and investments. During the first quarter of fiscal year 2018, the Company generated $250 million in cash from operations and returned $204 million to shareholders through share repurchases and a cash dividend.
The Company announced the next cash dividend of $0.20 per share. The quarterly dividend will be paid on October 25, 2017, to shareholders of record as of the close of business on October 6, 2017.
“We delivered strong Q1 results across the board and continued to introduce substantial innovation. We are strengthening our leadership position by enhancing our all flash array and converged infrastructure offerings, and augmenting our Data Fabric strategy,” said George Kurian, chief executive officer. “Customers and industry leaders are excited by our strategic direction and are choosing NetApp as their partner for data-driven digital transformations. We are building on a strong foundation and are, without question, the best positioned and the best executing company in the industry.”
Q2 Fiscal Year 2018 Outlook
The Company provided the following financial guidance for the second quarter of fiscal year 2018:

• Net revenues are expected to be in the range of $1.31 billion to $1.46 billion
• Earnings per share is expected to be in the range of: GAAP Non-GAAP

$0.47 - $0.55 $0.64 - $0.72