NetApp Swings To Profit, Shares Up 5%

(RTTNews) - Data-storage systems maker NetApp Inc. (NTAP), Wednesday reported a swing to profit in the first quarter, reflecting higher-than-expected revenues and lower operating costs. Shares of the company gained 5 percent in extended trading session.

Sunnyvale, California-based NetApp reported a first-quarter profit of $64 million or $0.23 per share, compared to a loss of $30 million or $0.10 per share last year.

Excluding items, adjusted earnings for the quarter rose to $0.46 per share from $0.29 per share a year ago. Analysts polled by Thomson Reuters estimated earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.

NetApp's revenues for the quarter dropped to $1.29 billion from $1.34 billion last year. Analysts had a consensus revenue estimate of $1.26 billion for the quarter.

Product revenues, the biggest contributor to the top line, dropped to $660 million from $664 million last year. Software maintenance revenues slipped to $241 million from $248 million and hardware maintenance revenues declined to $393 million from $423 million last year.

"We are pleased with our first quarter results. Our focus on disciplined execution of our strategy is yielding results and starting to change the trajectory of our business," said George Kurian, chief executive officer. "We remain sharply focused on operating more efficiently while delivering market-leading innovations that are aligned to our customers' business and IT transformation priorities."

Operating expenses for the quarter dropped to $704 million from $842 million last year.

Looking forward to the second quarter, the company estimates adjusted earnings of $0.51 to $0.56 per share and revenues of $1.27 billion to $1.42 billion. Analysts currently estimates earnings of $0.54 per share on revenues of $1.33 billion for the quarter.

NTAP closed Wednesday's trading at $28.85, down $0.10 or 0.35% on the Nasdaq. The stock, however, gained $1.46 or 5.06% in the after-hours trade.