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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