NetApp handily tops first quarter expectations, stock climbs after hours

NetApp said that its all flash array business had an annualized net revenue run rate of $2.3 billion.

Data storage provider NetApp delivered better-than-expected first quarter financial results on Wednesday, following several media reports this week that the company was laying off over 5% of its staff. The company did not confirm the layoffs as part of its earnings release. 

As for the numbers, NetApp reported first quarter net income of $77 million, or 35 cents per share, on revenue of $1.3 billion, up from $1.24 billion the year prior. Non-GAAP earnings were $73 per share. 

Wall Street was looking for earnings of 41 cents per share on revenue of $1.15 billion.

NetApp said that its all flash array business had an annualized net revenue run rate of $2.3 billion, down from $2.6 billion last quarter. Meanwhile, annualized recurring revenue from its cloud data services increased 192% year-over-year to $178 million. 

For the current quarter, NetApp said it expects non-GAAP earnings per share between -- cents and -- cents and revenue in the range of $1-- billion and $-- billion. Wall Street is predicting non-GAAP EPS of 77 cents on $1.24 billion of revenue. For the year, analysts are looking for NetApp to deliver earnings of $3.27 per share on revenue of $5.12 billion. 

"Revenue, operating margin and EPS all exceeded our guidance, despite a challenging environment, said George Kurian, NetApp's chief executive officer. "We are building on a strong foundation of industry-leading data-centric software innovation, trusted customer relationships and an open-ecosystem approach that is strengthened by partnerships with the leading public cloud companies who endorse our Data Fabric Strategy."

Shares of NetApp were up over 12% in after market trading.