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. ®

Internet Security Threat Report 2014

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
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'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
'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!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.