NetApp, Inc. (NASDAQ:NTAP) Q2 2018 Earnings Conference Call Transcript

Nov 15, 2017 • 05:30 pm ET


NetApp, Inc. (NASDAQ:NTAP) Q2 2018 Earnings Conference Call Transcript


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Good afternoon, ladies and gentlemen. Welcome to NetApp's Second Quarter Fiscal Year 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

I would now turn the call over to Kris Newton, VP, Corporate Communications and IR.

Kris Newton

Thank you for joining us on our Q2 fiscal year 2018 earnings call. With me today are our CEO, George Kurian; and CFO, Ron Pasek. This call is being webcast live and will be available for replay on our website at, along with the earnings release, our financial tables and guidance, a historical supplemental data table, and the non-GAAP to GAAP reconciliation.

(Forward-Looking Cautionary Statements)

During the call, all financial measures presented will be non-GAAP, unless otherwise indicated.

I'll now turn the call over to George.

George Kurian

Thank you, Kris. Good afternoon, everyone. Thank you for joining us today. I am very pleased to report another strong quarter with revenue above the midpoint of our guidance range and gross margin, operating margin, and earnings per share all above our guidance. We saw a solid demand environment in all geographies and strong customer interest in our industry-leading solutions.

I am proud of our continued progress in transforming NetApp to deliver sustained profitable growth. Our strong performance reflects our customers' commitment to NetApp and their clear and growing preference for the value of our Data Fabric strategy. We are undoubtedly out executing our competition on all fronts.

In the second quarter, we launched innovative new products and grew our business in new areas. It's been particularly exciting to see our cloud strategy pay off with our expanded relationship with Microsoft Azure and the industry's first Azure enterprise NFS service.

In the new era of IT, driven by digital transformation and defined by the ubiquitous hybrid clouds, IoT and machine learning, NetApp is uniquely positioned as the leader in helping organizations liberate and unleash their data for maximum business impact. We enable customers to meet the exponential data growth of the digital era where they must manage a complex hybrid world with data in the data center, the cloud and in edge computing, and externally linked applications and platforms.

Unlike competitors' approaches, which are siloed and do not embrace the cloud, we help organizations unify their data across the widest range of cloud and on-premises environments to realize its full value for competitive advantage. Data is at the heart of Company's digital transformation, and we are winning because we are enabling customers' success through data. No one matches our expertise in data management, our leadership in growing market segments and our open ecosystem approach. Our advantage is the result of decades of software-based innovation, strategic focus and the ability to partner effectively.

Before giving you an update on the set of strategic solutions that are tightly aligned to customers' IT imperatives, I want to give a brief update on the dynamics in our mature solutions. Consistent with