Feeds

NetApp thin provisions income in Q1

Cultivated surge planned

Top three mobile application threats

NetApp's earnings climbed 11 per cent during its fiscal first quarter 2009, but margins were thin due to growing interest in low-end storage and an investment "surge" that the company expects to pay off in the second half of the year.

"Our new fiscal year got off to a good start, and our efforts to increase awareness and sales capacity in order to secure new customers are delivering results," said CEO Dan Warmenhoven in a statement.

Revenues were $869m, an increase of 26 per cent compared to $689m for the same period last year.

Net income was $38m, compared to $34m year-over-year.

Product sales totaled about $548m, services brought in about $177m, and revenues from software licensing and maintenance were $144m.

Warmenhoven said in a conference call today that the company is seeing more strength in low-end storage systems — but the gear is less profitable because it typically ships with less software and options.

Enterprise spending has remained consistent due to big firms looking for new kit to save costs, he said.

Mid-tier array sales, however, were weak in Q1. NetApp expects the numbers to pick up when sales of its new FAS3100 arrays are better reflected in the fiscal second quarter.

The company spent about $303m on marketing, $125m on research and development, and $50m general and administrative costs.

NetApp said its marketing and hiring costs have gone through a "surge" recently in order to "cultivate" current accounts and build greater brand recognition.

"We feel it will pay off and we'll come roaring right back," Warmenhoven said.

NetApp estimates revenue for the second quarter 2009 will be between $910m and $940m.

In a separate announcement, NetApp said it's authorized $1bn for stock repurchases. ®

High performance access to file storage

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
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
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
prev story

Whitepapers

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.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.