NetApp reports stronger than expected Q1, sees glimpses of turnaround

NetApp's first quarter topped estimates following a series of disappointments and cost cutting. Is a turnaround near?

NetApp reported strong first quarter results and delivered an outlook in line with expectations.

The company reported fiscal first quarter earnings of $64 million, or 23 cents a share, on revenue of $1.29 billion. Non-GAAP earnings were 46 cents a share.

Wall Street was expecting NetApp to report non-GAAP earnings of 36 cents a share on revenue of $1.26 billion.

NetApp has struggled in recent quarters amid storage market shifts to the cloud and solid state drives. NetApp has played well with hybrid cloud partnerships and has all-Flash products, but transitions take time. Fortunately for NetApp, the company has $4.4 billion in cash and equivalents.

For the second quarter, NetApp projected revenue between $1.26 billion to $1.41 billion with non-GAAP earnings between 51 cents a share to 56 cents a share.

CEO George Kurian said:

Our focus on disciplined execution of our strategy is yielding results and starting to change the trajectory of our business.

During the quarter, NetApp rolled out a series of flash storage products, rollouts from SolidFire and hybrid cloud moves.

Separately, NetApp named Jean English chief marketing office. English was most recently in charge of IBM's cloud marketing.

Image: NetApp

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