NEW YORK (
(NTAP - Get Report)
bust out its first guidance for nine months during its
Thursday, signaling a much-improved IT spending environment.
With its bullish second- and third-quarter forecast, NetApp is clearly confident of its ability to increase the pressure on rivals such as
(EMC - Get Report)
(HPQ - Get Report)
"Yes, we're back in the guidance business," explained NetApp CFO Steve Gomo during a presentation at the New York event. "We want to take share, and if we take share we will be growing at a pretty good clip."
For the second quarter of fiscal 2010, Gomo forecast revenue between $887 million and $885 million, up from $838 million in the prior quarter, and well above analysts' estimate of $862.05 million.
NetApp expects to earn between 29 cents a share and 30 cents a share during the quarter, compared to Wall Street's estimate of 29 cents.
Gomo also issued third-quarter guidance, forecasting sales between $910 million and $930 million. Analysts surveyed by Thomson Reuters had expected revenue of $893.98 billion.
Third-quarter earnings are expected to be between 35 cents a share and 36 cents a share, above analysts' estimate of 33 cents a shares.
NetApp will also achieve its goal of a 16% operating margin during the third quarter, according to the CFO.
The numbers has an immediate impact on NetApp's shares, which quickly gained $1.18, or 4.46%, to reach $27.62, outpacing the modest rally in tech stocks that saw the Nasdaq gain 1.22%.