Feeds

NetApp rides stiff rise in sales but profits droop

Third quarter improves thanks to virtualisation

Build a business case: developing custom apps

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. ®

Boost IT visibility and business value

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
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
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.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.