On a GAAP basis, net income was $103 million, or $0.42 per share, compared to $283 million, or $1.05 per share, last year. Adjusted net income was $157 million, or $0.65 per share. The consensus forecast was for EPS of $0.61.
During the quarter, NetApp made changes to the products and
solutions in the Strategic and Mature product groups. Mature now includes OEM
and all products related to disk and hybrid arrays. Strategic now includes
add-on software, private cloud solutions, and all products related to All-Flash
Arrays.
Total product revenues fell 26% year-over-year, driven by a
29% drop in Strategic revenue and a 23% decrease in Mature revenue. Looking at
geographic mix, Americas made up 51% of total revenue in the quarter versus 57%
in the same period last year. EMEA comprised 33% versus 29% last year while
Asia-Pacific comprised 16% versus 14%.
In terms of pathways mix, direct revenues formed 19% of
total revenue while indirect revenues comprised 81%. This compares to 29% and
71%, respectively, last year.
For the second quarter of 2020, NetApp expects revenues to
be $1.32 billion to $1.47 billion. GAAP EPS is expected to be $0.86-0.94 while
adjusted EPS is expected to be $0.91-0.99.
For the full year of 2019, net revenues are expected to
decline 5-10% year-over-year. Consolidated gross margins are expected to be
65-66% on a GAAP basis and 66-67% on a non-GAAP basis. Operating margins are
expected to come between 16-19% on a GAAP basis and 19-22% on a non-GAAP basis.
NetApp declared a dividend of $0.48 per share, payable on October 23, 2019, to shareholders of record as of October 4, 2019.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.