NetApp (NTAP) 8-K NetApp to Offer $1.1 Billion Convertible Senior Notes due 2013

Exhibit 99.4

NETAPP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	April 25, 2008		April 27, 2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	936,479	$	489,079
Short-term investments		227,911		819,702
Accounts receivable, net		582,110		548,249
Inventories		70,222		54,880
Prepaid expenses and other assets		120,561		99,840
Short-term restricted cash and investments		2,953		118,312
Short-term deferred income taxes		127,197		110,741
Total current assets		2,067,433		2,240,803
PROPERTY AND EQUIPMENT, net		693,792		603,523
GOODWILL		680,054		601,056
INTANGIBLE ASSETS, net		90,075		83,009
LONG-TERM INVESTMENTS AND RESTRICTED CASH		331,105		12,572
LONG-TERM DEFERRED INCOME TAXES AND OTHER ASSETS		208,529		117,515
	$	4,070,988	$	3,658,478
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt		—	$	85,110
Accounts payable		178,233		144,112
Income taxes payable		6,245		53,371
Accrued compensation and related benefits		202,929		177,327
Other accrued liabilities		154,331		97,017
Deferred revenue		872,364		630,610
Total current liabilities		1,414,102		1,187,547
LONG-TERM DEBT		172,600		—
OTHER LONG-TERM OBLIGATIONS		146,058		9,487
LONG-TERM DEFERRED REVENUE		637,889		472,423
		2,370,649		1,669,457
STOCKHOLDERS’ EQUITY (341,715 and 367,030 common stock outstanding, net of treasury stock, at April 25, 2008 and April 27, 2007)		1,700,339		1,989,021
	$	4,070,988	$	3,658,478

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NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except net income per share amounts)

(Unaudited)

	Quarters Ended						Years Ended
	April 25, 2008			April 27, 2007			April 25, 2008			April 27, 2007
REVENUES:
Product	$	629,610		$	588,121		$	2,242,474		$	2,085,898
Software entitlements and maintenance		136,268			99,206			486,896			341,258
Service		171,854			113,866			573,797			377,126
Total revenues		937,732			801,193			3,303,167			2,804,282
COST OF REVENUES:
Cost of product		256,860			230,491			911,434			815,928
Cost of software entitlements and maintenance		2,014			2,752			8,572			10,210
Cost of service		105,986			81,936			369,785			273,644
Total cost of revenues		364,860			315,179			1,289,791			1,099,782
GROSS MARGIN		572,872			486,014			2,013,376			1,704,500
OPERATING EXPENSES:
Sales and marketing		296,457			259,599			1,075,588			895,813
Research and development		124,968			108,802			452,205			385,357
General and administrative		47,793			42,164			171,536			147,501
Restructuring charges (recoveries)		447			—			447			(74	)
Gain on sale of assets		—			—			—			(25,339	)
Total operating expenses		469,665			410,565			1,699,776			1,403,258
INCOME FROM OPERATIONS		103,207			75,449			313,600			301,242
OTHER INCOME (EXPENSES), net:
Interest income		14,316			17,617			64,610			68,837
Interest expense		(1,860	)		(265	)		(7,990	)		(11,642	)
Net gain (loss) on investments		—			(422	)		12,614			(1,538	)
Other income (expense), net		(578	)		(362	)		(135	)		2,829
Total other income, net		11,878			16,568			69,099			58,486
INCOME BEFORE INCOME TAXES		115,085			92,017			382,699			359,728
PROVISION FOR INCOME TAXES		25,264			2,397			72,961			61,993
NET INCOME	$	89,821		$	89,620		$	309,738		$	297,735
NET INCOME PER SHARE:
BASIC	$	0.26		$	0.24		$	0.88		$	0.80
DILUTED	$	0.26		$	0.23		$	0.86		$	0.77
SHARES USED IN PER SHARE CALCULATION:
BASIC		342,308			369,002			351,676			371,204
DILUTED		348,492			385,151			361,090			388,454

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NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(In thousands)

(Unaudited)

	Quarters Ended						Years Ended
	April 25, 2008			April 27, 2007			April 25, 2008			April 27, 2007
Cash Flows from Operating Activities:
Net income	$	89,821		$	89,620		$	309,738		$	297,735
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		31,329			25,075			115,250			87,391
Amortization of intangible assets and patents		8,503			6,986			28,934			23,442
Stock-based compensation		34,886			38,354			147,964			163,033
Net (gain) loss on investments		—			422			(12,614	)		1,538
Gain on sale of assets		—			—			—			(25,339	)
Net loss on disposal of equipment		1,013			87			1,841			773
Allowance for doubtful accounts		463			742			818			928
Deferred income taxes		38,307			(57,506	)		(53,031	)		(145,989	)
Deferred rent		3,280			54			3,912			1,033
Income tax benefit from stock-based compensation		(48,795	)		42,577			48,195			175,036
Excess tax benefit from stock-based compensation		1,716			(19,696	)		(45,391	)		(63,159	)
Changes in assets and liabilities:
Accounts receivable		(114,249	)		(152,234	)		(27,741	)		(175,231	)
Inventories		(10,198	)		6,413			(15,382	)		9,908
Prepaid expenses and other assets		(27,025	)		(5,385	)		(7,549	)		(6,366	)
Accounts payable		53,896			32,143			20,031			36,589
Income taxes payable		(6,286	)		13,963			(47,300	)		1,556
Accrued compensation and related benefits		23,776			26,742			18,754			43,612
Other accrued liabilities		(855	)		4,171			3,974			16,903
Other liabilities		49,722			340			117,469			(265	)
Deferred revenue		163,998			157,879			401,014			421,328
Net cash provided by operating activities		293,302			210,747			1,008,886			864,456
Cash Flows from Investing Activities:
Net redemptions of investments		167,731			55,086			376,449			187,857
Decrease (increase) in restricted cash		607			(43	)		(793	)		290
Proceeds from sale of assets		—			—			—			23,914
Proceeds from sales of nonmarketable securities		—			1,039			898			2,813
Proceeds from sales of marketable securities		—			—			18,256			—
Purchases of property and equipment		(63,433	)		(53,417	)		(188,280	)		(165,828	)
Purchases of nonmarketable securities		—			(250	)		(4,235	)		(1,583	)
Purchase of business, net of cash acquired		(99,601	)		—			(99,390	)		(131,241	)
Net cash (used in) provided by investing activities		5,304			2,415			102,905			(83,778	)
Cash Flows from Financing Activities:
Proceeds from sale of common stock related to employee stock transactions		14,510			38,028			114,697			215,453
Tax withholding payments reimbursed by restricted stock		(169	)		(580	)		(6,020	)		(5,272	)
Excess tax benefit from stock-based compensation		(1,716	)		19,696			45,391			63,159
Change on revolving credit facility		(77,400	)		—			172,354			—
Repayment of debt		(28,790	)		(66,021	)		(85,110	)		(214,890	)
Repurchases of common stock		(59,453	)		(200,000	)		(903,704	)		(805,708	)
Net cash used in financing activities		(153,018	)		(208,877	)		(662,392	)		(747,258	)
Effect of Exchange Rate Changes on Cash		14,532			(5,422	)		(1,999	)		(5,597	)
Net Increase (decrease) in Cash and Cash Equivalents		160,120			(1,137	)		447,400			27,823
Cash and Cash Equivalents:
Beginning of period		776,359			490,216			489,079			461,256
End of period	$	936,479		$	489,079		$	936,479		$	489,079

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