NetApp delivered better-than-expected fiscal second quarter earnings, but sales came in light relative to expectations due to "some unexpected weakness in a handful of our largest accounts." NetApp also cut its outlook for the third quarter.
The storage company reported second quarter earnings of $165.6 million, or 44 cents a share, on revenue of $1.51 billion. Non-GAAP earnings were 63 cents a share. Wall Street was looking for earnings of 59 cents a share on revenue of $1.53 billion.
"In aggregate, we saw strong revenue growth across most areas of our business, offset by some unexpected weakness in a handful of our largest accounts."
The outlook was also worrisome. NetApp projected third quarter revenue between $1.52 billion and $1.61 billion, or 18 percent to 25 percent growth from a year ago. Sequentially, revenue growth will be between 1 percent and 7 percent. NetApp projected non-GAAP earnings of 56 cents a share to 60 cents a share.
Wall Street was expecting NetApp to report third quarter earnings of 63 cents a share on revenue of $1.63 billion.