Feeds

NetApp rides stiff rise in sales but profits droop

Third quarter improves thanks to virtualisation

Boost IT visibility and business value

NetApp saw off its last quarter's major account weakness and grew third quarter revenues to $1.57bn, though profits dropped 35.5 percent.

Total revenues of $1.566bn compare to $1.268bn a year ago, up 23.5 per cent, while profits of $120m compare to third quarter fiscal 2011 profits of $186m, reflecting a tougher competitor environment where NetApp is facing down EMC, new customer capture costs and the effect of hard disk drive shortages, which is driving up prices.

NetApp Q3 fy2012

Recent NetApp quarterly revenue history

Last quarter's revenues were held back by nine major accounts delaying purchases. That did not happen this quarter. CEO Tom Georgens attributed the revenue rise to customers increasing their efforts to use storage virtualisation to increase the efficiency of their data centres. All three FAS array ranges did well, with the refreshed FAS2000 low-end growing nicely after declining revenues in the most recent quarters.

In the earnings call he said the storage market was increasingly about the two top dogs, EMC and NetApp, competing with each other and taking share from the big (server) box vendors.

He specifically said that NetApp would bring out a PCIe flash card for servers with links to NetApp's arrays.

The outlook for the next quarter was for revenues between $1.6545bn and $1.725bn – translating to a 15 to 21 per cent annual growth and 5 to 10 per cent sequential growth.

The tightly run NetApp money-making product machine steams steadily on, content, El Reg storage desk thinks, to be number 2 with no realistic hope of catching up with EMC. ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.