Storage Vendor NetApp Quarter Earnings Beat EstimatesBy Jessica Davis | 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
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.