NetApp's Q1 solid as outlook raised

NetApp reported strong first quarter results raised its outlook.

The storage vendor reported first quarter earnings of $64 million, or 17 cents a share, on revenue of $1.44 billion, down from $1.46 billion a year ago. Non-GAAP earnings were 42 cents a share.

Wall Street was looking for first quarter earnings of 38 cents a share on revenue of $1.46 billion.

As for the outlook, NetApp projected second quarter earnings to be 23 cents a share to 28 cents a share on revenue of $1.5 billion to $1.6 billion. Non-GAAP second quarter earnings are expected to be 45 cents a share to 50 cents a share.

Analysts were expecting NetApp to report second quarter earnings of 46 cents a share on revenue of $1.53 billion.

In the first quarter, NetApp rolled out a new version of its storage operating system and bolstered partnerships with Cisco and Microsoft. The company also unveiled a new system for midsized customers.

NetApp ended the quarter with cash, cash equivalents and investments of $5.44 billion. Product revenue was $898 million in the first quarter with software and maintenance adding $218.5 million. Service revenue was $328.1 million.