As expected, NetApp CEO Tom Georgens faced a barrage of questions from on the company's M&A strategy. After recently losing out to EMC in the tussle to acquire Data Domain (DDUP), the executive was asked whether he was looking at other acquisitions.
"The Data Domain thing didn't go our way, but that doesn't scare us away from other deals, nor do we feel compelled to do something [like the Data Domain deal]," he responded, vaguely. "Not winning [Data Domain] doesn't expose a hole in our portfolio that we feel compelled to fill tomorrow."
A number of names have nonetheless been touted as possible NetApp M&A targets, including software specialist CommVault (CVLT) Virtual Tape Library (VTL) firm FalconStor (FALC) and privately-held Sepaton.
Georgens was also asked whether his own company could be acquisition bait. With its strong growth profile, even in a tough economy, NetApp is seen as one of the best-positioned firms in the tech sector."We desire to be independent -- I think there's a preference [for that] within the company," he replied. "I think there's an opportunity for NetApp to be a true growth company -- a dollar invested with NetApp will generate a better return than a dollar invested with NetApp and our successor." The CEO also used his analyst day presentation to describe NetApp's own sales strategy, specifically its efforts to target the 'Storage 5000', the world's 5000 users of data storage. "60% of the Storage 5000 are not covered [by NetApp] today," he said. "There's plenty of headroom in our existing market to increase our share."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV