Feeds

NetApp profits up, forecast down

Punished by March and investors

Combat fraud and increase customer satisfaction

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. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Microsoft builds teleporter weapon to send VMware into Azure
Updated Virtual Machine Converter now converts Linux VMs too
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.