NetApp reported its fourth quarter earnings for the 2015 fiscal year after the bell on Wednesday, and the results were less than stellar.
The network data storage provider reported a net income of $135 million, or 43 cents per share (statement). That's compared to $197 million, or 59 cents a share, the year prior.
Non-GAAP earnings were 65 cents per share on revenue of $1.54 billion.
Wall Street was looking for earnings of 72 cents per share with $1.59 billion in revenue.
NetApp's shares fell as much as 9 percent in after market trading following the earnings miss.
NetApp chairman and CEO Tom Georgens acknowledged the company's shaky quarter in prepared remarks.
"We are not satisfied with our fourth quarter results and are taking concrete action to transition NetApp for the next phase of growth," Georgens said.
The first action to stabilize NetApp's bottom line appears to be a 4 percent reduction of its total workforce. On a call with analysts and media, NetApp revealed plans to lay off approximately 500 workers by the third quarter.
As a result of the layoffs, NetApp expects to record a charge of $25 million to $35 million. For the current quarter, which marks NetApp's first fiscal quarter of 2016, the company said it expects to lose between 11 cents to 6 cents a share.
NetApp's guidance estimates also failed to line up with analyst expectations. The company now expects revenue in the range of $1.27 billion to $1.37 billion, with non-GAAP EPS in the range of 20 cents to 25 cents a share. That falls well below the current consensus of $1.46 billion and 60 cents a share.
To soften the sting of the quarter for shareholders, the Sunnyvale, Calif.-based corporation said its board approved an increase to the fiscal 2016 first quarter cash dividend to 18 cents a share, a 9 percent increase from the prior rate.