NetApp's Q2 shows stabilization as earnings top expectations

For fiscal 2020, NetApp projected a revenue decline of 8% with non-GAAP gross margins between 67% to 68%.

NetApp's second quarter was a mixed bag as revenue fell short of expectations, but non-GAAP earnings topped estimates. The company said its all-flash array was on a revenue run rate of $2.2 billion and the outlook was solid. 

The storage company reported second-quarter net income of $243 million, or $1.03 a share, on revenue of $1.37 billion, down from $1.52 billion a year ago. Non-GAAP earnings for the second quarter were $1.09 a share.

Wall Street was expecting revenue of $1.38 billion for the fiscal second quarter with non-GAAP earnings of 94 cents a share.

CEO George Kurian said the company will maintain discipline with its spending.

As for the outlook, NetApp projected $1.39 billion to $1.54 billion, or $1.14 a share to $1.22 a share. For the third quarter, Wall Street was expecting non-GAAP earnings of 99 cents a share on revenue of $1.47 billion.

For fiscal 2020, NetApp projected a revenue decline of 8% with non-GAAP gross margins between 67% to 68%.

Separately, NetApp named James Whitemore chief marketing officer. He has been interim CMO since July.  

Related stories: