Feeds

NetApp profits up, forecast down

Punished by March and investors

Top 5 reasons to deploy VMware with Tegile

Strong sales led Network Appliance fourth-quarter profits higher 51 per cent over the same period last year. Despite such a solid haul in Q4, the company expects a sales slump to lower revenue sequentially in the current quarter.

The network storage supplier reported $89.6m in Q4 income, compared to last year's 59.2m. Sales increased 34 per cent to $801.2m, over $598m the previous year.

All told, revenue for fiscal year 2007 totaled $2.8bn. That's an increase of 36 per cent from $2.07bn for fiscal 2006. The fiscal year's net income tallied $297.7m, up 12 per cent from $266.5m in 2006.

NetApp CFO Steve Gomo said the company expects revenue growth for the first quarter of fiscal 2008 to decline by 6 to 8 per cent — translating into lower growth year-over-year than analysts had hoped. The company blames corporate spending cuts early in the quarter for the slowdown.

“Network Appliance had a great finish to a great year. With 36 per cent annual growth, NetApp clearly provides to customers the best value in the industry,” NetApp CEO Dan Warmenhoven said in the report. “And while we weren’t immune from the March macroeconomic spending slowdown, our competitive differentiation and business fundamentals have never been stronger.”

Warmenhoven's spin proved unable to stop an after-hours collapse for NetApp's stock. Shares fell more than 17 per cent, following the earnings report, after closing up 22 cents to $38.06 per share during regular trading. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.