NetApp (NTAP) 8-K Netapp Announces Results for Fourth Quarter and Fiscal Year 2009

Exhibit 99.2

NETAPP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	April 24, 2009		April 25, 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,494,153	$	936,479
Short-term investments		1,110,053		227,911
Accounts receivable, net		426,384		582,110
Inventories		61,104		70,222
Prepaid expenses and other assets		119,887		123,514
Short-term deferred income taxes		207,050		127,197
Total current assets		3,418,631		2,067,433
PROPERTY AND EQUIPMENT, net		807,923		693,792
GOODWILL		680,986		680,054
INTANGIBLE ASSETS, net		45,744		90,075
LONG-TERM INVESTMENTS AND RESTRICTED CASH		127,317		331,105
LONG-TERM DEFERRED INCOME TAXES AND OTHER ASSETS		372,065		208,529
	$	5,452,666	$	4,070,988
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	137,826	$	178,233
Accrued compensation and related benefits		204,168		202,929
Other accrued liabilities		170,159		154,331
Accrual for GSA settlement		128,715		—
Income taxes payable		4,735		6,245
Deferred revenue		1,013,569		872,364
Total current liabilities		1,659,172		1,414,102
LONG-TERM DEBT AND OTHER OBLIGATIONS		1,429,499		318,658
LONG-TERM DEFERRED REVENUE		701,649		637,889
		3,790,320		2,370,649
STOCKHOLDERS’ EQUITY		1,662,346		1,700,339
	$	5,452,666	$	4,070,988

NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except net income per share amounts)
(Unaudited)

	Quarter Ended						Year Ended
	April 24, 2009			April 25, 2008			April 24, 2009			April 25, 2008
REVENUES:
Product	$	506,168		$	629,610		$	2,152,657		$	2,242,474
Software entitlements and maintenance		164,672			136,268			618,352			486,896
Service		209,518			171,854			764,099			573,797
GSA settlement		(715	)		—			(128,715	)		—
Net revenues		879,643			937,732			3,406,393			3,303,167
COST OF REVENUES:
Cost of product		245,205			269,804			1,007,642			942,924
Cost of software entitlements and maintenance		2,415			2,014			9,179			8,572
Cost of service		98,129			93,042			399,657			338,295
Total cost of revenues		345,749			364,860			1,416,478			1,289,791
GROSS MARGIN		533,894			572,872			1,989,915			2,013,376
OPERATING EXPENSES:
Sales and marketing		287,355			296,457			1,186,141			1,075,588
Research and development		124,985			124,968			498,495			452,205
General and administrative		52,175			47,793			203,698			171,536
Restructuring and other charges		35,451			447			54,406			447
Total operating expenses		499,966			469,665			1,942,740			1,699,776
INCOME FROM OPERATIONS		33,928			103,207			47,175			313,600
OTHER INCOME (EXPENSES), net:
Interest income		11,716			14,316			57,610			64,610
Interest expense		(7,510	)		(1,860	)		(26,865	)		(7,990	)
Gain (loss) on investments, net		(2,646	)		—			(29,571	)		12,614
Other income (expenses), net		197			(578	)		(3,520	)		(135	)
Total other income (expenses), net		1,757			11,878			(2,346	)		69,099
INCOME BEFORE INCOME TAXES		35,685			115,085			44,829			382,699
PROVISION (BENEFIT) FOR INCOME TAXES		(39,398	)		25,264			(41,716	)		72,961
NET INCOME	$	75,083		$	89,821		$	86,545		$	309,738
NET INCOME PER SHARE:
BASIC	$	0.23		$	0.26		$	0.26		$	0.88
DILUTED	$	0.23		$	0.26		$	0.26		$	0.86
SHARES USED IN PER SHARE CALCULATION:
BASIC		330,918			342,308			330,279			351,676
DILUTED		333,088			348,492			334,575			361,090

NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)

	Quarter Ended						Year Ended
	April 24, 2009			April 25, 2008			April 24, 2009			April 25, 2008
Cash Flows from Operating Activities:
Net income	$	75,083		$	89,821		$	86,545		$	309,738
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		40,704			39,832			170,538			144,184
Stock-based compensation		42,157			34,886			140,754			147,964
Impairment of investments		2,646			—			20,273			(12,614	)
Asset impairment and write-offs		3,308			1,013			31,573			1,841
Allowance for doubtful accounts		(757	)		463			1,146			818
Deferred income taxes		(52,696	)		26,673			(124,176	)		(53,031	)
Deferred rent		1,752			3,280			4,789			3,912
Income tax benefit from stock-based compensation		19,256			(37,161	)		59,660			48,195
Excess tax benefit from stock-based compensation		(17,579	)		1,716			(52,507	)		(45,391	)
Changes in assets and liabilities:
Accounts receivable		(81,421	)		(114,249	)		148,845			(27,741	)
Inventories		21,085			(10,198	)		9,126			(15,382	)
Prepaid expenses and other assets		928			(27,025	)		3,596			(7,549	)
Accounts payable		15,187			53,896			(26,969	)		20,031
Accrued compensation and related benefits		18,968			23,776			12,874			18,754
Other accrued liabilities		11,423			(855	)		30,139			3,974
Accrual for GSA settlement		715			—			128,715			—
Income taxes payable		(1,767	)		(6,286	)		(1,440	)		(47,300	)
Other liabilities		(505	)		49,722			10,643			117,469
Deferred revenue		81,303			163,998			219,301			401,014
Net cash provided by operating activities		179,790			293,302			873,425			1,008,886
Cash Flows from Investing Activities:
Net redemptions (purchases) of investments		(291,866	)		167,731			(116,783	)		376,449
Reclassification from cash and cash equivalents to short-term investments		—			—			(597,974	)		—
Change in restricted cash		780			607			336			(793	)
Net proceeds (purchases) of nonmarketable and marketable securities		(50	)		—			757			14,919
Purchases of property and equipment		(134,756	)		(63,433	)		(289,657	)		(188,280	)
Purchase of business net of cash acquired		—			(99,601	)		—			(99,390	)
Net cash provided by (used in) investing activities		(425,892	)		5,304			(1,003,321	)		102,905
Cash Flows from Financing Activities:
Proceeds from sale of common stock related to employee stock transactions		17,596			14,510			91,014			114,697
Tax withholding payments reimbursed by restricted stock		(930	)		(169	)		(5,115	)		(6,020	)
Excess tax benefit from stock-based compensation		17,579			(1,716	)		52,507			45,391
Proceeds from revolving credit facility		—			56,000			—			318,754
Proceeds from issuance of convertible notes		—			—			1,265,000			—
Payment of financing costs		—			—			(26,581	)		—
Sale of common stock warrants		—			—			163,059			—
Purchase of note hedge		—			—			(254,898	)		—
Repayment of debt		—			(28,790	)		—			(85,110	)
Repayment of revolving credit facility		—			(133,400	)		(172,600	)		(146,400	)
Repurchases of common stock		—			(59,453	)		(399,981	)		(903,704	)
Net cash provided by (used in) financing activities		34,245			(153,018	)		712,405			(662,392	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		(2,190	)		14,532			(24,835	)		(1,999	)
Net Increase (Decrease) in Cash and Cash Equivalents		(214,047	)		160,120			557,674			447,400
Cash and Cash Equivalents:
Beginning of period		1,708,200			776,359			936,479			489,079
End of period	$	1,494,153		$	936,479		$	1,494,153		$	936,479