NetApp shares drop slightly following mixed fiscal Q1 earnings report

NetApp shares drop slightly following mixed fiscal Q1 earnings report

Summary: The short story is that earnings beat expectations while revenue missed the mark. Q2 guidance also hovered around analyst expectations.

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NetApp turned a mixed bag for its fiscal first quarter earnings report after the bell on Wednesday.

The short story is that earnings beat expectations while revenue missed the mark. Q2 guidance also hovered around analyst expectations.

The network storage solutions provider reported a net income of $82 million, or 23 cents per share (statement).

Non-GAAP earnings were 53 cents per share on a revenue of $1.516 billion, up five percent year-over-year.

Wall Street was looking for earnings of 49 cents per share and $1.53 billion in revenue.

Right after the Q1 report hit the wires, NetApp shares were down by four percent initially in after-hours trading.

Highlighting the clustered Data ONTAP operating system as a strong point for the quarter, CEO Tom Georgens reflected further in prepared remarks:

Despite an uneven macro environment, our branded business was strong, with 9% year-over-year growth. This is evidence of the tremendous value we are delivering to customers today and their confidence in our long-term strategy to enable them to navigate the future.

For the second quarter, Wall Street is looking for revenue of $1.62 billion with earnings of 62 cents per share.

NetApp provided a revenue guidance range of $1.560 billion to $1.660 billion with earnings projected to drop between 60 and 65 cents per share.

Here are some highlights from NetApp's first quarter of fiscal 2014:

  • NetApp Connect introduced, enabling mobile access to corporate data stored behind a corporate firewall.
  • Teamed with Cisco on FlexPod Select, designed specifically to address targeted, "data-intensive" workloads in high-performance computing environments that require the ability to scale quickly and virtually automatically.
  • Announced plans to investment $15 million in new ecosystem sales collaboration and continued technology integration with Microsoft for the purpose of encouraging enterprise cloud adoption and deployments
  • Announced integration for clustered Data ONTAP with Citrix technologies for desktop and application virtualization, mobile collaboration, and cloud services

Topics: Storage, Data Management, Networking, Enterprise 2.0, Tech Industry

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