Storage Vendor NetApp Quarter Earnings Beat Estimates

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.