NetApp names new CEO; Reports solid quarter

Storage company NetApp said Wednesday that Tom Georgens, chief operating officer, will become CEO replacing Dan Warmenhoven.

Warmenhoven will be executive chairman of the company. Georgens (right) has been a member of the board and president and chief operating officer since February 2008. He joined the company in 2005.

While the swap may have been planned the timing is notable. EMC recently outbid NetApp for Data Domain. Some analysts have speculated that NetApp went from the hunter to the hunted with the deal.

The company also reported its first quarter results. For the quarter ended July 31, NetApp reported earnings of $51.7 million, or 15 cents a share, up 49 percent from a year ago. Adjusted earnings were 22 cents a share, two pennies better than Wall Street estimates. NetApp's revenue in the first quarter was $838 million, down 4 percent from a year ago but better than Wall Street estimates.

Georgens said in a statement:

Given the economic backdrop, NetApp performed well in the first quarter. With year over year revenue growth roughly flat on a constant currency basis, our revenue performance clearly outpaced the storage industry.

However, NetApp wouldn't provide an outlook for the second quarter given the rocky economy.

By the numbers:

• NetApp reported fiscal first quarter product revenue of $478.2 million, down from $547.8 million a year ago. Software and maintenance revenue was $165.3 million, up from $144.4 million a year ago. Services revenue was $194.4 million, up from $176.5 million a year ago.
• The company ended the quarter with $1.78 billion in cash and equivalents with short-term investments of $878.4 million.
• R&D spending was $130.3 million, up from $125.3 million a year ago.