NetApp Inc (NASDAQ: NTAP) stock fell over 2% in the pre-market session of June 3rd, 2021 (Source: Google finance) after the company posted lower than expected results for the fourth quarter of FY 21. In fiscal ‘22, the company expects gross margin to be roughly flat year-over-year at 67% to 68%, as improving cloud margins are balanced with strong demand for our hybrid cloud products.
The company delivered Q4 billings of $1.7 billion, up 12% year-over-year. When combined, software revenue, recurring support and cloud revenue were of total $1.1 billion and increased 18% year-over-year, representing 72% of total revenue. In Q4, Product revenue was of $840 million increased 6% year-over-year. For the first time in company history, the company has ended Q4 with over $4 billion in deferred revenue, which represents an increase of 8% year-over-year. The company generated cash flow from operations of $559 million and free cash flow of $521 million, representing 34% of revenue.
NTAP in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.17, while reported the adjusted revenue growth of 11 percent to $1.56 billion in the fourth quarter of FY 21. The company delivered Gross margin of 67.3% & Operating margin of 23%
Additionally, the company has increased the first quarter fiscal year 2022 dividend by 4% to $0.50 per share, which will be paid on July 28, 2021, to shareholders of record as of the close of business on July 9, 2021. The Company authorized an additional $500 million for the repurchase of shares of its common stock under its existing share repurchase program.
In fiscal ‘22, the company expects revenues to grow in the range 6% to 7% year-over-year, with billings expected to outpace revenue given the continued strength in recurring support contracts and cloud services. The company projects the operating margin to range between 21% and 22%. The company expects to deliver $4.45 to $4.65 in fiscal ‘22 EPS, representing 12% year-over-year growth, at the mid-point. The company expects to generate over $1.1 billion in free cash flow in fiscal ‘22, as the hybrid cloud business continues to fund the growth in the cloud services franchise. The company expects CapEx to be in the range of $225 million to $235 million.