NetApp (NTAP) 8-K Netapp Announces Results for Third Quarter of Fiscal Year 2009

Exhibit 99.1

Press Contact:	Investor Contacts:
NetApp	NetApp	NetApp
Jodi Baumann	Tara Dhillon	Billie Fagenstrom
Ph: (408) 822-3974	Ph: (408) 822-6909	Ph: (408) 822-6428
jodi@netapp.com	tara@netapp.com	billief@netapp.com

NETAPP ANNOUNCES RESULTS FOR THIRD
QUARTER OF FISCAL YEAR 2009

SUNNYVALE, Calif. – February 11, 2009 —NetApp (NASDAQ: NTAP) today reported results for the third fiscal quarter of 2009. Including the impact of a $128 million accrual to value a contingency related to a dispute with the General Services Administration (GSA), GAAP revenues for the third fiscal quarter of 2009 totaled $746 million compared to GAAP and Non-GAAP revenues of $884 million for the same period a year ago. Non-GAAP revenues¹ for the third fiscal quarter, excluding the impact of the $128 million GSA accrual, totaled $874 million.

     GAAP net loss for the third quarter of fiscal year 2009 was $75 million, or $0.23 per share² compared to GAAP net income of $102 million, or $0.29 per share for the same period in the prior year. Non-GAAP net income³ for the third fiscal quarter of 2009 was $93 million, or $0.28 per share, compared to non-GAAP net income of $132 million, or $0.37 per share for the same period a year ago.

     GAAP revenues for the first nine months of the current fiscal year totaled $2.5 billion compared to GAAP and non-GAAP revenues of $2.4 billion for the first nine months of the prior year, an increase of 7% year over year. Non-GAAP revenues for the first nine months of the current fiscal year, excluding the impact of the $128 million GSA accrual, totaled $2.7 billion.

     GAAP net income for the first nine months of the current fiscal year totaled $11 million, or $0.03 per share, compared to GAAP net income of $220 million, or $0.60 per share for the first nine months of the prior fiscal year. Non-GAAP net income for the first

nine months of the current fiscal year totaled $262 million, or $0.78 per share, compared to non-GAAP net income of $324 million, or $0.89 per share for the first nine months of the prior fiscal year.

     “Business levels softened in January as many customers’ budgets contracted, resulting in lower revenues than we had expected. At the same time, our storage efficiency value proposition resonates in challenging economic times, and we gained a record number of new customers during the quarter,” said Dan Warmenhoven, chairman and CEO. “Operationally, the NetApp team also did a stellar job, decreasing non-GAAP operating expenses by $30 million in one quarter. However, we needed to make further reductions in order to optimize our resource allocation for our strategic growth initiatives. Therefore, we have implemented a restructuring that unfortunately includes the elimination of approximately 6% of our global workforce. While this was a very difficult decision, we believe our actions will best position the company for additional market share gains in the future.”

Outlook

Given the reduced visibility caused by the recent changes in the macroeconomic environment, NetApp will not be providing formal revenue guidance for the fourth quarter of fiscal year 2009.

§ NetApp estimates non-GAAP gross margins for the fourth quarter of fiscal year 2009 to be approximately 60%.

§ NetApp estimates non-GAAP operating expenses for the fourth quarter of fiscal year 2009 to increase by about $5 million to $10 million from the third quarter of fiscal year 2009.

§ NetApp estimates the company will incur approximately $30 million to $35 million in GAAP severance and other charges associated with a business restructuring in the fourth fiscal quarter.

Quarterly Highlights

     In the third quarter of fiscal year 2009, NetApp introduced several new solutions to help customers transform their data center architectures through greater storage efficiency, greater

power and space savings, and innovative data management techniques. The company also received industry recognition for its environmental, product, and operational excellence.

     During the quarter, NetApp was ranked number one byFORTUNEmagazine on the “100 Best Companies to Work For” list. This is the second year it has achieved a top-10 ranking and the third consecutive year it has been named in the top 15. An egalitarian culture, competitive salaries, unique benefits, and a down-to-earth management style are attributes that have catapulted the company to the number-one spot for 2009. In addition,The Boston Globenamed NetApp as one of the Top Places to Work in Massachusetts.

     This quarter, NetApp extended its 50% Virtualization Guarantee⁴ Program, previously available only for VMware, to Citrix and Microsoft virtual environments. As part of the program, NetApp is offering a guarantee that customers will use 50% less storage with NetApp compared to traditional storage in Citrix XenServer and Microsoft Windows Server Hyper-V virtual environments.

     Also this quarter, NetApp announced the availability of the FAS3160 and V3160, strengthening its current series of midrange storage offerings. Additionally, the company announced availability of SANscreen® 5.0, a new addition to the award-winning SANscreen product suite that provides customers increased storage management capabilities for improved cost savings and data center efficiencies. NetApp also introduced SnapManager® 3.0 for Oracle, providing customers who have Oracle Database environments running on NetApp® enterprise storage systems significant improvements in backup, restore, and cloning capabilities.

     NetApp was also recognized by the following third parties for its environmental, product and operational excellence:

• Pacific Gas and Electric Company (PG&E)presented NetApp with a rebate of $1.4 million under PG&E’s Non-Residential New Construction Program, which encourages PG&E’s commercial, industrial, high-technology, and agricultural customers to implement energy-efficient building and process design and construction.

• Citrix Systems, Inc.honored NetApp with the Citrix Ready Solution of the Year award, which recognizes a company that excels in providing application delivery and virtualization solutions that are complementary to Citrix and drive Citrix adoption.

• Baseline Magazineand Business Technology Management Corporation (BTM)presented NetApp with theBaseline/BTM 500 Award and recognized Marina Levinson, NetApp CIO, for Outstanding Technology Management at NetApp.

Webcast and Conference Call Information

§ The NetApp quarterly results conference call will be broadcast live on the Internet athttp://investors.netapp.com on Wednesday, February 11, 2009, at 2:00 p.m. Pacific Time. This press release and any other information related to the call will also be posted on the Web site at that location.

§ The conference call will also be available live in a listen-only format at (800) 561-2693 in the United States and (617) 614-3523 outside the United States. The pass code for both numbers is 14751884.

§ A replay will be available for 72 hours following the completion of the live call by dialing (888) 286-8010 in the United States and (617) 801-6888 outside the United States, using replay code 87373458. The Webcast replay will be posted on our Web site for at least one year.

About NetApp

NetApp creates innovative storage and data management solutions that accelerate business breakthroughs and deliver outstanding cost efficiency. Discover NetApp’s passion for helping companies around the world go further, faster atwww.netapp.com.

“Safe Harbor” Statement Under U.S. Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include all of the statements under

the Outlook section relating to our forecasted operating results and metrics for the fourth quarter of fiscal year 2009, our $128 million contingency for resolution of the GSA dispute and statements regarding our future market share. These forward-looking statements involve risks and uncertainties, and actual results could vary. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the material and adverse global economic and market conditions that currently exist and that are expected to persist throughout calendar 2009, the final outcome of our GSA dispute with the federal government, our ability to build nondeferred backlog to levels consistent with our past results and to increase our revenue over the next several quarters; risks associated with the anticipated growth in network storage and content delivery markets; our ability to deliver new product architectures and enterprise service offerings; competition risks, including our ability to design products and services that compete effectively from a price and performance perspective; risks with new product introductions; our reliance on a limited number of suppliers; our ability to accurately forecast demand for our products and successfully manage our relationships with our contract manufacturers; our ability to expand our direct sales operations and reseller distribution channels; our ability to develop, maintain, and strengthen our relationships and product offerings with strategic partners; risks associated with international operations; our ability to successfully acquire and integrate complementary businesses and technologies; foreign currency exchange rate fluctuations; and other important factors as described in NetApp reports and documents filed from time to time with the Securities and Exchange Commission, including the factors described under the sections captioned “Risk Factors” in our most recently submitted 10-K and 10-Q. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

1	Non-GAAP revenues excludes the impact of the GSA accrual.
2	Earnings per share is calculated using the diluted number of shares for all periods presented except for the third quarter of fiscal 2009, which is calculated using the basic number of shares.
3	Non-GAAP results of operations exclude the reserve for the GSA accrual, restructuring charges, amortization of intangible assets, stock-based compensation expenses, asset impairment, acquisition related retention costs, prior acquisition related costs, net gain or loss on investments, and the related effects on income taxes as well as certain discrete GAAP provisions for income tax matters recognized ratably for non-GAAP purposes and the tax effect on sale of investments.

⁴ This guarantee and related program are limited to the terms set forth in the Program Guide and Acknowledgement for 50% Virtualization Guarantee Program. Please visit www.netapp.com/guarantee for more information.

NetApp, the NetApp logo Go further, faster, SANscreen, and SnapManager are trademarks or registered trademarks of NetApp, Inc. in the United States and/or other countries. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.

NetApp Usage of Non-GAAP Financials

The Company refers to the non-GAAP financial measures cited above in making operating decisions because they provide meaningful supplemental information regarding the Company’s operational performance. Non-GAAP revenues excludes the impact of the GSA accrual. These non-GAAP results of operations exclude the reserve for the GSA contingency, restructuring charges, amortization of intangible assets, stock-based compensation expenses, asset impairment, acquisition-related retention costs, prior acquisition-related costs, net gain or loss on investments, and the related effects on income taxes as well as certain discrete GAAP provisions for income tax matters recognized ratably for non-GAAP purposes and the tax effect on sale of investments. We have excluded these items in order to enhance investors’ understanding of our ongoing operations. The use of these non-GAAP financial measures has material limitations because they should not be used to evaluate our company without reference to their corresponding GAAP financial measures. As such, we compensate for these material limitations by using these non-GAAP financial measures in conjunction with GAAP financial measures.

These non-GAAP financial measures facilitate management’s internal comparisons to the Company’s historical operating results and comparisons to competitors’ operating results. We include these non-GAAP financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making, such as employee compensation planning. In addition, we have historically reported similar non-GAAP financial measures to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting at this time.

NetApp Use of Corporate Web Site

In accordance with SEC guidance published on August 22, 2008(Release No. 34-58288), NetApp will begin to disseminate material information about the company through its corporate Web site within the next several fiscal quarters. NetApp intends to designate a separate portion of its corporate Web site for purposes of these disclosures and will include a prominent link on its Web site to allow visitors to locate this material information, which will be routinely updated. The Web site will supplement, rather than replace, NetApp’s current existing channels of information distribution.

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

	January 23, 2009		April 25, 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,708,200	$	936,479
Short-term investments		871,846		227,911
Accounts receivable, net		344,437		582,110
Inventories		82,159		70,222
Prepaid expenses and other assets		118,365		120,561
Short-term restricted cash		2,281		2,953
Short-term deferred income taxes		153,901		127,197
Total current assets		3,281,189		2,067,433
PROPERTY AND EQUIPMENT, net		705,153		693,792
GOODWILL		680,054		680,054
INTANGIBLE ASSETS, net		51,495		90,075
LONG-TERM INVESTMENTS AND RESTRICTED CASH		80,215		331,105
LONG-TERM DEFERRED INCOME TAXES AND OTHER ASSETS		391,634		208,529
	$	5,189,740	$	4,070,988
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		122,924		178,233
Accrued compensation and related benefits		185,011		202,929
Other accrued liabilities		159,925		154,331
GSA contingency accrual		128,000		—
Income taxes payable		6,389		6,245
Deferred revenue		960,729		872,364
Total current liabilities		1,562,978		1,414,102
LONG-TERM DEBT AND OTHER OBLIGATIONS		1,430,687		318,658
LONG-TERM DEFERRED REVENUE		668,682		637,889
		3,662,347		2,370,649
STOCKHOLDERS’ EQUITY		1,527,393		1,700,339
	$	5,189,740	$	4,070,988

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

	Quarter Ended						Nine Months Ended
	January 23, 2009			January 25, 2008			January 23, 2009			January 25, 2008
REVENUES:
Product	$	528,198		$	608,138		$	1,646,489		$	1,612,864
Software entitlements and maintenance		156,546			125,568			453,680			350,628
Service		189,599			150,297			554,581			401,944
Total revenues before reserve for GSA contingency		874,343			884,003			2,654,750			2,365,436
Reserve for GSA contingency		(128,000	)		—			(128,000	)		—
Net revenues		746,343			884,003			2,526,750			2,365,436
COST OF REVENUES:
Cost of product		252,327			256,842			762,437			673,121
Cost of software entitlements and maintenance		2,320			2,560			6,765			6,558
Cost of service		98,480			85,299			301,528			245,253
Total cost of revenues		353,127			344,701			1,070,730			924,932
GROSS MARGIN		393,216			539,302			1,456,020			1,440,504
OPERATING EXPENSES:
Sales and marketing		291,634			279,114			898,786			779,131
Research and development		122,661			111,717			373,509			327,237
General and administrative		51,049			42,787			151,523			123,743
Restructuring charges		18,955			—			18,955			—
Total operating expenses		484,299			433,618			1,442,773			1,230,111
INCOME (LOSS) FROM OPERATIONS		(91,083	)		105,684			13,247			210,393
OTHER INCOME (EXPENSES), net:
Interest income		12,799			16,964			45,894			50,295
Interest expense		(7,238	)		(3,639	)		(19,355	)		(6,130	)
Gain (loss) on investments, net		(1,691	)		(1,005	)		(26,926	)		12,614
Other income (expenses), net		(1,249	)		(619	)		(3,717	)		443
Total other income (expenses), net		2,621			11,701			(4,104	)		57,222
INCOME (LOSS) BEFORE INCOME TAXES		(88,462	)		117,385			9,143			267,615
PROVISION (BENEFIT) FOR INCOME TAXES		(13,070	)		15,562			(2,318	)		47,697
NET INCOME (LOSS)		($75,392	)	$	101,823		$	11,461		$	219,918
NET INCOME (LOSS) PER SHARE:
BASIC	$	(0.23	)	$	0.30		$	0.03		$	0.62
DILUTED	$	(0.23	)	$	0.29		$	0.03		$	0.60
SHARES USED IN PER SHARE CALCULATION:
BASIC		329,026			344,275			330,067			354,799
DILUTED		329,026			352,780			335,070			365,290

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

	Quarter Ended						Nine Months Ended
	January 23, 2009			January 25, 2008			January 23, 2009			January 25, 2008
Cash Flows from Operating Activities:
Net income (loss)	$	(75,392	)	$	101,823		$	11,461		$	219,918
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		37,108			28,905			106,171			83,921
Amortization of intangible assets and patents		7,259			6,743			23,663			20,431
Stock-based compensation		34,430			34,296			98,597			113,077
Net loss (gain) on investments		1,691			1,005			3,674			(12,614	)
Impairment on investments		—			—			13,953			—
Asset impairment and other write-off		26,165			—			26,165			—
Net loss on disposal of equipment		1,340			583			2,100			828
Allowance for doubtful accounts		199			107			1,903			355
Deferred income taxes		(30,634	)		(39,306	)		(71,480	)		(79,704	)
Deferred rent		26			120			3,037			632
Income tax benefit from stock-based compensation		(4,816	)		42,714			40,404			85,356
Excess tax benefit from stock-based compensation		(617	)		(31,521	)		(34,928	)		(47,107	)
Changes in assets and liabilities:
Accounts receivable		19,060			(36,124	)		230,267			86,509
Inventories		(3,945	)		2,519			(11,959	)		(5,184	)
Prepaid expenses and other assets		20,796			(2,380	)		2,668			19,476
Accounts payable		(25,823	)		6,312			(42,156	)		(33,865	)
Accrued compensation and related benefits		24,662			24,862			(6,094	)		(5,022	)
Other accrued liabilities		13,807			13,759			18,716			4,829
GSA contingency accrual		128,000			—			128,000			—
Income taxes payable		863			2,975			327			(41,014	)
Other liabilities		11,966			5,003			11,148			67,747
Deferred revenue		49,855			124,619			137,998			237,016
Net cash provided by operating activities		236,000			287,014			693,635			715,585
Cash Flows from Investing Activities:
Purchases of investments		(227,526	)		(489,993	)		(711,488	)		(929,983	)
Redemptions of investments		144,131			511,137			407,774			1,138,701
Partial redemptions of Reserve Primary Fund		478,797			—			478,797			—
Reclassification from cash and cash equivalents to short-term investments		—			—			(597,974	)		—
Change in restricted cash		(1,126	)		43			(444	)		(1,400	)
Proceeds from sales of marketable securities		—			—			—			18,256
Proceeds from sales of nonmarketable securities		—			898			1,057			898
Purchases of property and equipment		(50,934	)		(53,689	)		(154,901	)		(124,847	)
Purchases of nonmarketable securities		—			(200	)		(250	)		(4,235	)
Goodwill adjustment on business acquisition		—			211			—			211
Net cash provided by (used in) investing activities		343,342			(31,593	)		(577,429	)		97,601
Cash Flows from Financing Activities:
Proceeds from sale of common stock related to employee stock transactions		27,851			34,120			73,417			100,187
Tax withholding payments reimbursed by restricted stock		(1,592	)		(649	)		(4,183	)		(5,851	)
Excess tax benefit from stock-based compensation		617			31,521			34,928			47,107
Proceeds from revolving credit facility		—			13,000			—			262,754
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		—			(18,980	)		—			(56,320	)
Repayment of revolving credit facility		(65,349	)		(13,000	)		(172,600	)		(13,000	)
Repurchases of common stock		—			(144,278	)		(399,982	)		(844,251	)
Net cash provided by (used in) financing activities		(38,473	)		(98,266	)		678,160			(509,374	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		(3,698	)		(6,503	)		(22,645	)		(16,532	)
Net Increase in Cash and Cash Equivalents		537,171			150,652			771,721			287,280
Cash and Cash Equivalents:
Beginning of period		1,171,029			625,707			936,479			489,079
End of period	$	1,708,200		$	776,359		$	1,708,200		$	776,359

NETAPP, INC.
SUPPLEMENTAL INFORMATION
(In thousands)
(Unaudited)

	QUARTER ENDED JANUARY 23, 2009
	Reserve for				Stock-based				Acquisition-		Prior				Loss (Gain) on
	GSA		Amortization of		Compensation		Asset		Related		Acquisition-		Restructuring		Investments,
	contingency		Intangible Assets		Expenses		Impairment		Retention Cost		related Costs		Charges		Net		Total
Total revenues	$	128,000		—		—		—		—		—		—		—	$	128,000
Cost of product revenues		—		6,161		775		—		—		—		—		—		6,936
Cost of service revenues		—		—		2,889		—		—		—		—		—		2,889
Sales and marketing expense		—		1,053		15,787		9,431		—		—		—		—		26,271
Research and development expense		—		—		8,982		—		—		—		—		—		8,982
General and administrative expense		—		—		5,997		—		—		—		—		—		5,997
Restructuring charges		—		—		—		—		—		—		18,955		—		18,955
Loss (gain) on investments, net		—		—		—		—		—		—		—		1,691		1,691
Effect on pre-tax income	$	128,000	$	7,214	$	34,430	$	9,431		—		—	$	18,955	$	1,691	$	199,721

	NINE MONTHS ENDED JANUARY 23, 2009
	Reserve for				Stock-based				Acquisition-		Prior				Loss (Gain) on
	GSA		Amortization of		Compensation		Asset		Related		Acquisition-		Restructuring		Investments,
	contingency		Intangible Assets		Expenses		Impairment		Retention Cost		related Costs		Charges		Net		Total
Total revenues	$	128,000		—		—		—		—		—		—		—	$	128,000
Cost of product revenues		—		19,657		2,347		—		—		—		—		—	$	22,004
Cost of service revenues		—		—		8,349		—		—		—		—		—		8,349
Sales and marketing expense		—		3,571		44,978		9,431		—		—		—		—		57,980
Research and development expense		—		—		26,651		—		—		—		—		—		26,651
General and administrative expense		—		—		16,272		—		—		—		—		—		16,272
Restructuring charges		—		—		—		—		—		—		18,955		—		18,955
Loss (gain) on investments, net		—		—		—		—		—		—		—		26,926		26,926
Effect on pre-tax income	$	128,000	$	23,228	$	98,597	$	9,431		—		—	$	18,955	$	26,926	$	305,137

	QUARTER ENDED JANUARY 25, 2008
	Reserve for				Stock-based				Acquisition-		Prior				Loss (Gain) on
	GSA		Amortization of		Compensation		Asset		Related		Acquisition-		Restructuring		Investments,
	contingency		Intangible Assets		Expenses		Impairment		Retention Cost		related Costs		Charges		Net		Total
Cost of product revenues		—		5,278	$	802		—		—		—		—		—	$	6,080
Cost of service revenues		—		—		2,511		—		—		—		—		—		2,511
Sales and marketing expense		—		970		14,802		—		761		—		—		—		16,533
Research and development expense		—		—		10,815		—		—		—		—		—		10,815
General and administrative expense		—		—		5,366		—		—		—		—		—		5,366
Loss (gain) on investments, net		—		—		—		—		—		—		—		1,005		1,005
Effect on pre-tax income		—	$	6,248	$	34,296		—	$	761		—		—	$	1,005	$	42,310

	NINE MONTHS ENDED JANUARY 25, 2008
	Reserve for				Stock-based				Acquisition-		Prior				Loss (Gain) on
	GSA		Amortization of		Compensation		Asset		Related		Acquisition-		Restructuring		Investments,
	contingency		Intangible Assets		Expenses		Impairment		Retention Cost		related Costs		Charges		Net			Total
Cost of product revenues		—	$	15,834	$	2,514		—		—		—		—		—		$	18,348
Cost of service revenues		—		—		7,788		—		—		—		—		—			7,788
Sales and marketing expense		—		2,911		49,428		—		3,086		—		—		—			55,425
Research and development expense		—		—		36,323		—		—		—		—		—			36,323
General and administrative expense		—		200		17,024		—		—		2,800		—		—			20,024
Loss (gain) on investments, net		—		—		—		—		—		—		—		(12,614	)		(12,614	)
Effect on pre-tax income		—	$	18,945	$	113,077		—	$	3,086	$	2,800		—		($12,614	)	$	125,294

NETAPP, INC.
RECONCILIATION OF NON-GAAP AND GAAP
IN THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except net income per share amounts)
(Unaudited)

	Quarter Ended						Nine Months Ended
	January 23, 2009			January 25, 2008			January 23, 2009			January 25, 2008
SUMMARY RECONCILIATION OF NET INCOME (LOSS)
NET INCOME (LOSS)		($75,392	)	$	101,823		$	11,461		$	219,918
Adjustments:
Reserve for GSA contingency		128,000			—			128,000			—
Amortization of intangible assets		7,214			6,248			23,228			18,945
Stock-based compensation expenses		34,430			34,296			98,597			113,077
Asset impairment		9,431			—			9,431			—
Acquisition-related retention cost		—			761			—			3,086
Prior acquisition-related costs		—			—			—			2,800
Restructuring charges		18,955			—			18,955			—
(Gain) loss on investments, net		1,691			1,005			26,926			(12,614	)
Tax effect on sale of investments		—			—			—			5,477
Discrete GAAP tax provision items		(3,880	)		59			428			(625	)
Income tax effect		(26,992	)		(12,443	)		(55,521	)		(25,914	)
NON-GAAP NET INCOME (LOSS)	$	93,457		$	131,749		$	261,505		$	324,150
NET INCOME (LOSS) PER SHARE		($0.229	)	$	0.289		$	0.034		$	0.602
Adjustments:
Reserve for GSA contingency		0.388			—			0.382			—
Amortization of intangible assets		0.022			0.017			0.069			0.052
Stock-based compensation expenses		0.105			0.097			0.294			0.310
Asset impairment		0.029			—			0.028			—
Acquisition-related retention cost		—			0.002			—			0.008
Prior acquisition-related costs		—			—			—			0.008
Restructuring charges		0.058			—			0.057			—
(Gain) loss on investments, net		0.005			0.003			0.080			(0.035	)
Tax effect on sale of investments		—			—			—			0.015
Discrete GAAP tax provision items		(0.012	)		0.001			0.001			(0.002	)
Income tax effect		(0.082	)		(0.035	)		(0.166	)		(0.071	)
NON-GAAP NET INCOME (LOSS) PER SHARE	$	0.284		$	0.374		$	0.779		$	0.887