Net Revenues of $1.34 Billion for the First Quarter

 NetApp (NASDAQ: NTAP) today reported financial results for the first quarter of fiscal year 2016, ended July 31, 2015.

First Quarter Financial Results  

Net revenues for the first quarter of fiscal year 2016 were $1.34 billion. GAAP net loss for the first quarter of fiscal year 2016 was $30 million, or $0.10 per share,[1] compared to GAAP net income of $88 million, or $0.27 per share,[2]for the comparable period of the prior year. Non-GAAP net income for the first quarter of fiscal year 2016 was $89 million, or $0.29 per share,[3] compared to non-GAAP net income of $198 million, or $0.60 per share, for the comparable period of the prior year.

Cash, Cash Equivalents and Investments 
NetApp ended the first quarter of fiscal year 2016 with $5.0 billion in total cash, cash equivalents and investments and generated $129 million in cash from operations. During the first quarter of fiscal year 2016, the Company returned $484 million to shareholders through share repurchases and a cash dividend.

The next dividend in the amount of $0.18 per share will be paid on October 21, 2015, to shareholders of record as of the close of business on October 9, 2015.

"The IT industry as a whole is going through fundamental change as enterprises transform themselves with digital capabilities. Data is at the heart of these transformations and where NetApp has a profoundly important role to play with our differentiated vision for data management," said George Kurian, CEO. "Our first fiscal quarter marks the beginning of a new chapter for NetApp. In the next phase of our journey, we are pivoting to better address the changing industry, to improving our own execution and to enhancing value for our shareholders."

Q2 Fiscal Year 2016 Outlook 
The Company provided the following financial guidance for the second quarter of fiscal year 2016:

Net revenues are expected to be in the range of $1.40 billion to $1.50 billion.

GAAP earnings per share is expected to be in the range of $0.35 to $0.40 per share.

Non-GAAP earnings per share is expected to be in the range of $0.55 to $0.60 per share.

Business Highlights

NetApp Expands All Flash FAS Solutions to Support Seamless Data Movement from Flash to Disk to Cloud:

Delivers Most Complete All Flash Offering for the Enterprise. With the NetApp All Flash FAS8000 series, customers benefit from built-in data protection, multiprotocol support, scale-out performance, and seamless data movement from flash to disk to cloud. Other features include quality of service, multi-tenancy and NetApp's best-in-class application integration for simplified configuration and management of SQL and Oracle databases, virtualized servers and VDI workloads.

Flash Essentials Innovations. The All Flash FAS products incorporate software optimizations derived from the NetApp advanced technology development lab. These innovations include a flash-optimized read data path, inline compression, and zero-based inline deduplication. Flash Essentials innovations are included in clustered Data ONTAP.

NetApp OnCommand® Performance Manager 2.0. The new software release gives users a comprehensive dashboard to evaluate All Flash FAS performance automatically and troubleshoot issues to maintain optimal system operation.

NetApp Expands Solutions and Services in Support of Hybrid Cloud Strategy:

The New AltaVault™ Solutions and Services Help Customers Unlock Cloud Economics. NetApp AltaVault, cloud-integrated storage solutions and services, provides customers with the ability to backup data quickly to any cloud at up to 90% less cost than on-premises solutions. AltaVault supports NetApp's vision for hybrid cloud data management, which gives customers the confidence that, no matter where their data lives, they can control, integrate, move, secure and consistently manage it.

Webcast and Conference Call Information 
NetApp will host a conference call to discuss these results today at 2:00 p.m. Pacific Time. To access the live webcast of this event, visit 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 also be available on the website after 4:00 p.m. Pacific Time today.