NetApp earnings turn up better than expected with $1.541B in revenue

NetApp's CEO cited strength in partnership strategies as key factors for second quarter growth.
Written by Rachel King, Contributor

NetApp turned in a healthy earnings statement for the second fiscal quarter of 2013 after the bell on Wednesday, with company leaders attributing much of the success to industry partnerships.

The network storage and software provider reported a net income of $110 million, or 30 cents a share (statement). Non-GAAP earnings were 51 cents a share on a revenue of $1.541 billion.

Wall Street was looking for NetApp to report fiscal second quarter earnings of 48 cents a share on revenue of $1.54 billion.

NetApp president and CEO Tom Georgens reflected on the quarter in prepared remarks:

NetApp produced healthy financial results in the second quarter with revenue roughly at the midpoint of and EPS above our guidance range, despite a difficult environment. We saw a strong uptake of NetApp Data ONTAP 8 and clustered Data ONTAP, as customers are looking to build agile data infrastructure environments with intelligent data management, nearly unlimited scalability, and nondisruptive operations. We also saw momentum in our partnering strategy with continued FlexPod growth and a record high revenue contribution from Arrow and Avnet. Our focus on delivering best-of-breed storage solutions and the leverage we gain through go-to-market and channel partners will enable NetApp to grow our business and gain share.

For the outlook, NetApp is predicting a revenue of $1.575 billion to $1.675 billion at the end of Q3 FY 2012 with non-GAAP earnings between 53 to 58 cents a share.

Wall Street is looking for NetApp to report fiscal third quarter earnings of 54 cents a share on revenue of $1.61 billion.

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