NetApp Q2 strong, raises outlook

NetApp's all-flash array product line is now on an annual revenue run rate of $2.2 billion.

NetApp's second quarter earnings handily topped estimates as the company all-flash array product line accelerated its annual revenue run rate.

The company reported second quarter net income of $241 million, or 91 cents a share, on revenue of $1.52 billion, up 7 percent from a year ago. Non-GAAP earnings per share for the quarter were $1.06 a share.

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Wall Street was looking for second quarter non-GAAP earnings of 99 cents a share on revenue of $1.51 billion.

As previously reported, NetApp's architecture, dubbed Data Fabric, as well as its software strategy is becoming more popular as storage and data hubs evolve to be a pillar for artificial intelligence workloads. Key items in the quarter include:

NetApp, which ended the quarter with $4.3 billion in cash, cash equivalents and investments, said it saw strong demand across its portfolio.

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As for the outlook, NetApp said it expects non-GAAP earnings per share between $1.12 and $1.18 with revenue between $1.55 billion to $1.65 billion.

Wall Street was expecting non-GAAP third quarter earnings of $1.12 a share on revenue of $1.6 billion.

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