NetApp, Inc. (NASDAQ:NTAP) Q3 2020 Earnings Conference Call - Final Transcript

Feb 12, 2020 • 05:30 pm ET

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NetApp, Inc. (NASDAQ:NTAP) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the NetApp Third Quarter of Fiscal Year 2020 Conference Call. My name is Sherry, and I will be your conference call coordinator for today. [Operator Instructions]

I will now turn the call over to Kris Newton, Vice President, Corporate Communications and Investor Relations. Please proceed, Ms. Newton.

Executive
Kris Newton

Thank you for joining us. 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 netapp.com.

During today's call, we will make forward-looking statements and projections with respect to our financial outlook and future prospects, such as our guidance for the fourth quarter and full fiscal year 2020, our expectations regarding future revenue, profitability and shareholder returns, and our ability to improve execution, gain share, reaccelerate growth and expand our sales capacity without increasing total operating expenses, all of which involve risk and uncertainty. We disclaim any obligation to update our forward-looking statements and projections. Actual results may differ materially for a variety of reasons, including macroeconomic and market conditions, the IT capital spending environment, and our ability to expand our total available market, acquire new accounts, expand in existing accounts, capitalize on our data fabric strategy, improve our consistency of sales execution and continue our capital allocation strategy.

Please also refer to the documents we file from time to time with the SEC and available on our website, specifically our most recent Form 10-K for fiscal year 2019, including the management's discussion and analysis of financial conditions and results of operations, and risk factors sections and our current reports on Form 8-K.

During the call, all financial measures presented will be non-GAAP, unless otherwise indicated. Reconciliations of GAAP to non-GAAP estimates are posted on our website.

I'll now turn the call over to George.

Executive
George Kurian

Thanks, Kris. Good afternoon, everyone.

Before I get into our results for the third quarter, I want to take a moment to talk about Ron. Today, we announced that Ron has decided to retire by the end of the fiscal year. I want to recognize his many contributions since joining NetApp in 2016. Under Ron's leadership, we have increased product margins by 10 points, nearly doubled our earnings power, and raised our dividend by over 100%. He has played a pivotal role in helping NetApp navigate a transformational period as we focus on becoming the leader in hybrid Cloud Data Services. I think you'll agree that he's always been a true and honest broker.

Knowing that this is his last earnings call before he retires, it's certainly bittersweet for me. We continuously think about what's next for the Company, and that includes thoughtful, proactive succession planning. To that end, Ron and I have been talking about the prospect of this transition for some time. During the search process, we have been focused on finding the right person to take on the role of Chief Financial Officer. And I'm very pleased with the quality