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.