NetApp beats Q2 expectations as all-flash business builds more momentum
NetApp posted its second quarter fiscal 2018 results on Wednesday, beating market expectations and raising its outlook as its all-flash array business continued to build momentum.
The company reported non-GAAP net income of $223 million, or 81 cents per share, on revenue of $1.42 billion, a year-over-year increase of 6 percent.
Wall Street was looking for earnings of 69 cents per share on revenue of $1.38 billion.
NetApp's all-flash array annualized net revenue hit a run rate of $1.7 billion, up from $1.5 billion in Q1. The company highlighted several products introduced in Q2 in the areas of flash, data center and cloud.
In a statement, CEO George Kurian said the company is positioned for expanded leadership in the growth segments of the market. "Our strong performance was driven by excellent execution and reflects our customers' clear and growing preference for the value of our Data Fabric strategy," he said.
For the third quarter, the company expects a non-GAAP EPS between 86 cents and 94 cents on revenues in the range of $1.425 billion to $1.575 billion.
NetApp also announced the addition of two new members to its board, and eBay CFO Scott Schenkel and Deborah Kerr, former EVP and CTO of Sabre.
In statement welcoming the new members, Kurian said,"Their understanding of our evolving markets and customers' data-driven digital transformations, combined with their deep business experience, will be of tremendous benefit as we continue our transformation and deliver sustained and profitable growth."