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
Ellison: Sparc M7 is Oracle's most important silicon EVER
'Acceleration engines' key to performance, security, Larry says
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Lenovo to finish $2.1bn IBM x86 server gobble in October
A lighter snack than expected – but what's a few $100m between friends, eh?
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Hey, what's a STORAGE company doing working on Internet-of-Cars?
Boo - it's not a terabyte car, it's just predictive maintenance and that
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual 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.