Feeds

NetApp blames tightwad bankers for lower forecast

Choppy waters ahead in Q4

Maximizing your infrastructure through virtualization

Network Appliance had a strong fiscal third quarter, but warns that current quarter revenue could suffer because banks are cutting orders.

CEO Dan Warmenhoven told analysts in a conference call yesterday that spending from financial institutions — some of NetApp's largest customers — have dropped due to a shaky economic climate. Major banks, such as France's Société Générale are among those tightening their purse strings.

For the quarter ended January 25, NetApp reported net income of $101.8m, an increase from $66.5m a year earlier.

Revenues for Q3 were $884m, an increase of 21 per cent compared to $729.3m the same quarter last year.

NetApp expects fourth-quarter revenues of $915m to $945m, a growth of 14 per cent to 18 per cent year-over-year. Analysts had expecting to see a much higher figure - near $966.5m.

Warmenhoven said the lowered guidance isn't an indication of any failure on NetApp's part, but a reflection of smaller customer budgets.

The company is trying to reduce its reliance on the financial sector. And it is stretching out into new areas of storage, such introducing de-duplication features in primary storage. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
Disaster Recovery upstart joins DR 'as a service' gang
Quorum joins the aaS crowd with DRaaS offering
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.