NetApp Reports Third Quarter of Fiscal Year 2021 Results

NetApp (NASDAQ: NTAP) today reported financial results for the third quarter of fiscal year 2021, which ended on January 29, 2021.

“We delivered another strong quarter with revenues at the top of our guidance range and operating margin and EPS above the high end of our expectations. We have sharpened our execution and Q3 fiscal year 2021 marks our third consecutive quarter of revenue and billings growth,” said George Kurian, chief executive officer. “Looking ahead, we are uniquely positioned to address customers’ requirements for digital transformations as they deploy workloads in the cloud, as well as maintain and modernize on premises. We are confident in the strength of our position as customers continue to turn to NetApp to help them solve the challenge of managing data in the hybrid cloud as the recovery unfolds.”

Third quarter of fiscal year 2021 financial results

• Net Revenues: $1.47 billion, compared to $1.40 billion in the third quarter of fiscal year 2020
• Net Income: GAAP net income of $182 million, compared to GAAP net income of $277 million in the third quarter of fiscal year 2020; non-GAAP net income⁴ of $250 million, compared to non-GAAP net income of $265 million in the third quarter of fiscal year 2020
• Earnings per Share: GAAP net income per share⁵ of $0.80 compared to GAAP net income per share of $1.21 in the third quarter of fiscal year 2020; non-GAAP net income per share of $1.10, compared to non-GAAP net income per share of $1.16 in the third quarter of fiscal year 2020
• Cash, Cash Equivalents and Investments: $3.89 billion at the end of the third quarter of fiscal year 2021
• Cash Provided by Operations: $373 million, compared to $420 million in the third quarter of fiscal year 2020
• Share Repurchase and Dividend: Returned $157 million to shareholders through share repurchases and cash dividends

Fourth quarter of fiscal year 2021 financial outlook

The company provided the following financial guidance for the fourth quarter of fiscal year 2021:

Net revenues are expected to be in the range of:		$1.44 billion to $1.54 billion
		GAAP		Non-GAAP
Earnings per share is expected to be in the range of:		$0.78 - $0.86		$1.06 - $1.14

Dividend

The next cash dividend of $0.48 per share is to be paid on April 28, 2021, to shareholders of record as of the close of business on April 9, 2021.

Third quarter fiscal year 2021 business highlights

NetApp delivers industry-leading products

• The NetApp Cloud Volumes platform is now available across all major cloud providers, allowing customers to optimize data storage and performance no matter where the data resides.
• NetApp released NetApp ONTAP™ 9.8 with a simplified management experience, new visualizations, new workflows, and UI enhancements to further improve and simplify data storage management.
• NetApp unveiled the NetApp EF300 that includes up to 367TB of total raw capacity which follows the release of the NetApp EF600 a year ago.
• NetApp expanded the FAS product line by adding the NetApp FAS500f with the best latency and response times in NetApp’s FAS family and full NVMe throughput (to the hosts and drives).
• The NetApp Data Science Toolkit provides industry-leading, multitenant data management capabilities in a simple, easy-to-use interface that is designed for data scientists and data engineers.
• NetApp unveiled the NetApp StorageGRID™ SG100 designed for customers just getting started with object storage and provides the power of the StorageGRID Admin Node and Gateway Node Software.
• With the release of NetApp SnapCenter™ 4.4, NetApp continues to introduce innovative ways to protect data and add value by providing better integrations with ONTAP and enterprise applications.
• NetApp unveiled the release of NetApp Active IQ™ Unified Manager 9.7 that focuses on enhancement of existing features such as self-managing storage, reporting, Active IQ Unified Manager backup and restore, REST API, and VMware awareness.

NetApp partnering for innovation

• NetApp and NVIDIA collaborated to create conversations AI architecture that deliver the required response times with NetApp ONTAP AI, which is powered by NVIDIA DGX systems and NetApp cloud-connected storage.
• NetApp and Google Cloud announced their latest collaboration, Anthos on bare metal with NetApp which will provide customers a deployment option to run Anthos on physical servers, without a hypervisor layer.
• NetApp and Microsoft collaborated on their joint cloud offering with Azure NetApp Files, a key service that has achieve Service Organization Controls⁶ compliance enabling customers to accomplish a variety of goals related to privacy, security, processing integrity, availability, and confidentiality.
• NetApp and Red Hat have collaborated on NetApp Project Astra™ using Red Hat OpenShift to meet emerging customer needs and im