NetApp 2Q earnings zoom despite revenue decline
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SUNNYVALE, Calif. — Data-storage vendor NetApp (NASDAQ: NTAP) reported decreased second-quarter revenues Wednesday, but income per share more than doubled from the year before.
In results issued after the market closed, NetApp, which has a corporate presence in Cary, N.C., said net income in the quarter that ended Oct. 30 was 27 cents per share, compared with 13 cents in the same period last year.
Unadjusted income also climbed, from 28 to 37 cents per share, the company said. Analysts had predicted unadjusted per-share income of 30 cents.
NetApp shares climbed to $30.40 in after-hours trading after closing at $29.62
Net income was $96 million compared with $43 million last year.
Overall revenues were down slightly, from $912 million to $910 million. Revenues for the first six months of the fiscal year were down 2 percent, NetApp reported.
The company said it expected more good news in the current quarter. It predicted third-quarter adjusted revenue of 24 to 25 cents per share, based on about 5 million more shares being outstanding.
"NetApp delivered a strong quarter with record gross margins, record revenue from our SAN products, and overall revenue that exceeded our expectations," said Tom Georgens, president and chief executive officer.
"Our value proposition resonates particularly well with customers who look to gain efficiency and streamline operations as they begin to build out their next-generation virtualized data centers. Driven by this demand, NetApp is forecasting record revenues for our next fiscal quarter."
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