The Register® — Biting the hand that feeds IT

NetApp shares shocked by profit warning

Stock drops nearly 20 per cent

Free whitepaper – Power and Cooling Capacity Management for Data Centers

In brief NetApp stock plunged nearly 20 per cent in after hours trading when the storage supplier warned first quarter revenue may be down further than previously expected.

The company's preliminary results today are below the previously gloomy forecast released in May. When NetApp reports its earnings on August 15, revenue is now expected to be in the range of $684m to $688m. The figure is short of the $745m to $753m it had forecast during its Q4 07 report.

"We are disappointed with our Q1 results," NetApp CEO, Dan Warmenhoven said in a statement. "We believe our performance was impacted by some continued softness in enterprise storage spending, most notably in our existing customer accounts in the U.S. and parts of Europe."

The lowered expectations would put revenue growth between 10 to 11 per cent year-over-year in the first quarter. The company vowed to slow spending and hiring to compensate for the slump. ®

Free whitepaper – Selecting an Industry-Standard Metric for Data Center Efficiency

Don’t Miss

Apple MacBook AirApple sues over knock-off power bricks

Imitation not flattery

US Air Force orders 2200 Sony PS3s

Extending supercomputing Linux cluster

Xiotech iconXiotech definitely not using SSDs in near future

Are we clear on that?

HP LogoHP takes one in the servers

Comment Hurd hails 3Com 'convergence'