Feeds

NetApp Q1 profit down 37%

Approves $1bn buy-back

Internet Security Threat Report 2014

Network Appliance posted sluggish revenue growth and lower profits for its first fiscal quarter of 2008, as the company faced a slowdown in sales from its largest customers in the US and Europe.

But the company punched up the news by announcing plans to expand its stock repurchasing program and grab as much as $1bn of its shares, funded by working capital. The company said the stock will add to the $200m remaining under existing programs.

NetApp's income for the quarter ended July 27, was $34.3m, down 37.3 per cent from $54.7m a year ago. Revenue reached $689.2, a 11 per cent rise from $621.3m during the same period last year and a 14 per cent decrease compared to $801.2m during its forth fiscal quarter.

"We are clearly disappointed with our revenue growth this quarter, yet confident about our underlying business strength and continued health, said NetApp CEO Dan Warmenhoven. "Our bookings growth and cash flow are both very encouraging, and we are optimistic about getting back on track for higher growth in revenue and profits going forward."

Despite the revenue results, the numbers beat the company's revised forecast of landing between $684m and $688m. This pleased investors enough to send shares up nearly 5 per cent in after-hours trading.

Warmenhoven said in a conference call he expects sales from the company's large enterprise customers to pick up for the remainder of the year.

NetApp expects revenue for the second quarter to be between $752m and $768m, marking a year-over-year growth of 15 to 18 per cent. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
Intel, Cisco and co reveal PLANS to keep tabs on WORLD'S MACHINES
Connecting everything to everything... Er, good idea?
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
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'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
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.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.