NEW YORK (TheStreet) -- International Business Machines Corp. (IBM) announced on Friday it will stop selling storage technology from NetApp Inc. (NTAP) in an effort to get customers to purchase its own products, Bloomberg reports.
On May 27, IBM will officially shutdown production on NetApp's new N series systems as it looks to increase its own declining hardware sales.
NetApp gets 2% of its revenue from IBM, Bloomberg said.
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Shares of NetApp are up 0.03% to $35.77 in after-hours trading today.
TheStreet Ratings team rates NETAPP INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NETAPP INC (NTAP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow."