Storage Vendor NetApp Quarter Earnings Beat Estimates

By Jessica Davis  |  Print this article Print


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NetApp reported higher-than-expected quarterly earnings, but saw revenues drop year over year. The earnings announcement coincided with NetApp's naming of a new CEO in a move the company characterized as a planned transition.

NetApp (NASDAQ: NTAP) reported higher-than-expected quarterly earnings, but like so many other companies, it saw revenues fall year over year.

The IT storage vendor reported net income of $52 million, or 15 cents per share, for Q1, compared with net income of $35 million, or 10 percent per share, for the same period a year ago. Revenues came in at $838 million, down 4 percent compared with revenues of $869 million during the same period last year.

"Given the economic backdrop, NetApp performed well in the first quarter," says Tom Georgens, NetApp’s brand new president and CEO, in a prepared statement.

NetApp declined to provide guidance for Q2, citing "reduced visibility caused by the recent changes in the macroeconomic environment."  However, the company estimates non-GAAP gross margins of between 62.5 percent and 63 percent and non-GAAP operating expense levels to be in the range of $425 million.

NetApp’s earnings coincided with the company’s announcement of a new CEO in what it is characterizing as a planned transition. Georgens is taking over as CEO, effective immediately, replacing a 15-year veteran in the slot, Dan Warmenhoven, who will retain his position as chairman of the board and will also fill a new position, executive chairman.

NetApp shares opened lower this morning and were trading down close to 5 percent at $21.77 an hour after the market opened.

Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com

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