Feeds

NetApp files away big Q1 gain

Storage keeps on selling

  • alert
  • submit to reddit

Application security programs and practises

Shares of Network Appliance jumped more than 11 percent during Wednesday's trading after the storage maker reported a robust 38 percent rise in first quarter revenue.

On Tuesday, NetApp posted revenue of $358m - a figure well ahead of the $261m posted in the same period last year. Income also surged, rising 73 percent to $47m up from $27m last year. The company's results back up strong recent performances from EMC and Dell to show overall strength in the storage market.

"NetApp demonstrated exceptional execution, a strong balance sheet, and continued cash generation during the quarter," said NetApp CEO Dan Warmenhoven. "Our focus is on expanding our market share and our results demonstrate that the market is continuing to move toward us."

While NetApp barely beat analysts' first quarter expectations, it provided a rosy outlook for the coming quarter which appeared to please investors. The vendor is looking for second quarter revenue to come in 4 percent to 6 percent higher than the Q1 total on the back of solid gains in Asia. Shares of NetApp hit as high as $19.50 during today's trading and held the gains, as the stock price sat at $19.44 just ahead of the market close.

NetApp has specialized in IP-based storage systems and dominated the market for NAS (network attached storage) boxes. Over the past couple of years, it has been trying to produce higher-end kit that can compete better against the Fibre Channel-based systems sold by EMC and others.

EMC posted a 33 percent revenue gain in its most recent quarter and partner Dell showed 60 percent growth. Both vendors helped promote the notion that a slump affecting large software sellers has not carried over to the hardware market. HP, however, deadened some of this excitement with dismal storage results in its third quarter, although HP's woes had more to do with operational issues than a general slowdown in hardware spending.

NetApp closed a number of deals during its first quarter, including shipments to Audi AG, Canon, Catholic Healthcare West, China Everbright Bank, Ciena, City of Concord and ConocoPhillips. ®

Related stories

King Arthur and his Bytes of the Round Table
Veritas cleans up financials
EMC confirms low-end storage charge
Slinging disks, NetApp booms in Q3

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.