NetApp(NTAP) - 2025 Q3 - Quarterly Report

Financial Performance - Net revenues for the three months ended January 24, 2025, were $1,641 million, a 2.2$1,606 million in the same period last year[20]. - Net income for the nine months ended January 24, 2025, was $846 million, representing a 21.8$695 million for the same period in 2024[20]. - For the nine months ended January 24, 2025, net revenues reached $4,840 million, up from$4,600 million in the same period of 2024, representing a 5.2% growth[99]. - The total gross profit for the nine months ended January 24, 2025, was $3,420 million, with a total gross margin of 70.7$3,257 million and a margin of 70.8% for the same period in 2024[98]. - The basic net income per share for the three months ended January 24, 2025, was $1.47, compared to$1.52 for the same period last year[20]. Assets and Liabilities - Total current assets decreased to $3,908 million as of January 24, 2025, down from$4,897 million as of April 26, 2024, reflecting a 20.2% decline[15]. - Total liabilities decreased to $7,994 million as of January 24, 2025, compared to$8,741 million as of April 26, 2024, a reduction of 8.5%[17]. - Cash and cash equivalents were $1,511 million as of January 24, 2025, down from$1,903 million as of April 26, 2024, a decrease of 20.6%[15]. - NetApp's non-current assets increased to $1,742 million as of January 24, 2025, compared to$1,503 million as of April 26, 2024, representing a growth of 15.9%[45]. - Total long-term debt as of January 24, 2025, was $1,244 million, down from$1,992 million on April 26, 2024[64]. Stock and Dividends - The company repurchased $900 million of common stock during the nine months ended January 24, 2025[25]. - The company declared cash dividends of$0.52 per common share during the three months ended January 24, 2025[27]. - Cash dividends declared were $130 million for the nine months ended January 24, 2025, compared to$171 million for the same period in the previous year, indicating a decrease of 24.0%[29]. - The stock repurchase program has authorized cumulative repurchases of up to $17.1 billion, with 7.4 million shares repurchased at an average price of$121.46 per share[77][78]. - Dividends per share declared increased to $1.56 for the nine months ended January 24, 2025, compared to$1.50 in the prior year[79]. Revenue Segments - The Hybrid Cloud segment generated product revenues of $2,195 million for the nine months ended January 24, 2025, compared to$2,043 million for the same period in 2024, indicating a growth of approximately 7.4%[98]. - The Public Cloud segment reported revenues of $501 million for the nine months ended January 24, 2025, compared to$459 million for the same period in 2024, reflecting an increase of approximately 9.1%[98]. - Revenues from the Americas increased to $833 million in Q3 2025 from$802 million in Q3 2024, while EMEA revenues decreased slightly from $567 million to$559 million[99]. Expenses and Costs - Operating expenses for the nine months ended January 24, 2025, totaled $2,431 million, a marginal increase from$2,409 million in the same period last year[20]. - Cost of product revenues for the third quarter was $330 million, a 17$282 million in the same period of fiscal 2024; for the first nine months, it was $906 million, a 10$823 million[136]. - Sales and marketing expenses for the third quarter were $439 million, a 3$451 million in the same period of fiscal 2024; for the first nine months, expenses were $1,407 million, a 3$1,368 million[149]. - Research and development expenses for the third quarter were $247 million, a 1$249 million in the same period of fiscal 2024; for the first nine months, expenses were $756 million, remaining flat compared to$758 million[150]. - General and administrative expenses for the third quarter were $74 million, a 9$81 million in the same period of fiscal 2024; for the first nine months, expenses were $226 million, a 2$230 million[152]. Cash Flow and Financing - Net cash provided by operating activities for the first nine months of fiscal 2025 was $831 million, down from$1.1 billion in the same period of fiscal 2024[162]. - Cash flows used in financing activities totaled $1.7 billion in the first nine months of fiscal 2025, compared to$1.1 billion in the same period of fiscal 2024[166]. - The company has a $1.0 billion revolving unsecured credit facility, maturing on January 22, 2026, with no amounts drawn against it as of January 24, 2025[69]. - The company has a commercial paper program allowing for the issuance of unsecured notes up to$1.0 billion, with no outstanding notes as of January 24, 2025[175]. - The outstanding payment related to the transition tax is estimated at approximately $100 million, expected to be paid during fiscal 2026[178]. Restructuring and Workforce - In the first nine months of fiscal 2025, the company reduced its global workforce by approximately 4$38 million, with $9 million recorded in the third quarter[121]. - Restructuring charges for the first nine months of fiscal 2025 were$38 million, a decrease of 14% compared to $44 million in the same period of fiscal 2024, with a global workforce reduction of approximately 4$228 million of gross unrecognized tax benefits as of January 24, 2025, with $169 million potentially affecting the provision for income taxes if recognized[91]. - Provision for income taxes for the first nine months of fiscal 2025 was$188 million, a decrease of 3% compared to $193 million in the same period of fiscal 2024[158]. Other Information - The company is implementing a new global ERP system, expected to strengthen internal controls over financial reporting by fiscal 2026[188]. - There have been no material changes in market risk exposures compared to the previous fiscal year[185]. - The report includes various certifications from the Chief Executive Officer and Chief Financial Officer pursuant to the Sarbanes-Oxley Act of 2002[206].