Balance Sheet
Exiting 2Q11, cash and short-term investments were $4,381.5 million versus $3,920.9 million in 1Q11. Receivables were $446.6 million versus $372.5 million in 1Q11. Days sales outstanding amounted to 34 days versus 30 days in 1Q11. Inventories were $84.7 million versus $90.4 million in 2Q11. Inventory turns were 18.8 times in the quarter versus 17.9 times in 1Q11.
Long-term debt was $1,329.5 million versus $1,309.5 million in 1Q11. Long term deferred revenue was $866.4 million versus $821.0 million in 1Q11.
Cash Flow
Cash from operations was $364.7 million in 2Q11 versus $267.3 million in 2Q10 and $177.3 million in 1Q11. Capital expenditure was $43.3 million in 2Q11 versus $22.8 million in 1Q10 and $40.2 million in 1Q11. Free cash flow (FCF) was $321.0 million in 2Q11 versus $177.0 million in 2Q10 and $137.0 million in 1Q11.
Going forward, management expects free cash flow to be in the higher end of the 17NaV range.
Share Repurchase
The Company did not repurchase any shares in 2Q11.
Acquisition
On January 12, 2011, NetApp Inc. announced that it had entered into a definitive agreement to acquire Akorri Networks ,Inc., a privately held company headquartered in Littleton, Massachusetts, in an all cash transaction. The acquisition is expected to close early in NetApp’s fourth fiscal quarter, subject to the satisfaction of customary closing conditions. The terms of the deal are not being disclosed at this time. Akorri extends NetApp Inc. OnCommand with performance capacity analytics to provide customers greater visibility across the entire IT stack. As a result, customers can further improve IT efficiency and flexibility through functions that help control, automate, and analyze their shared IT infrastructure. NetApp provides Akorri immediate enterprise credibility with the industry’s storage platform of choice for building an efficient and flexible shared IT infrastructure as the foundation for cloud computing.
• High costs are expected to adversely affect bottom line growth going forward.
• Storage networking is a relatively new market, built upon rapidly evolving technology. Therefore, technology stumbles could negatively impact NTAP’s operating results.
• NTAP historically trades at a premium to the market, but demonstrates above-average volatility.
• NTAP is an emerging player in a competitive industry. EMC, among others, is pushing hard to remove NTAP out of the NAS leadership slot, especially with its highly functional and competitively priced product, Clarion.
• Changes in tax policy might have an adverse impact on the Company’s effective tax rate.
Created by: WikiMigrationBot. Last Modification: Thursday 03 of June, 2010 08:31:19 CDT by WikiMigrationBot.