NetApp Q3, outlook in line with expectations

NetApp reported solid third quarter results and delivered an in line outlook for the next three months.

The storage company reported fiscal third quarter earnings of $120 million, or 32 cents share, on revenue of $1.57 billion. Non-GAAP earnings were 58 cents a share, in line with Wall Street estimates.

As for the outlook, NetApp said it sees fourth quarter revenue of $1.64 billion to $1.72 billion, up 15 percent to 21 percent from a year ago. Earnings in the fourth quarter will be 38 cents a share to 43 cents a share. Non-GAAP earnings will be 60 cents a share to 65 cents a share.

Wall Street was looking for non-GAAP earnings of 63 cents a share on revenue of $1.68 billion.

The company said that it added a record number of new customers and that the move toward virtualization in the enterprise is boosting storage demand. "NetApp significantly increased our units shipped -- including a record number of high-end systems, and saw solid revenue growth across almost all geographies in our third quarter," said NetApp CEO Tom Georgens.

By the numbers for the quarter ended Jan. 27:

• Product revenue was $1.06 billion. Software and maintenance revenue was $203.5 million and service sales were $299 million.
• Research and development spending was $208.3 million.
• NetApp had $4.87 billion in cash, cash equivalents and investments.