's profits tumbled in the second quarter despite solid revenue growth.
The results, released Wednesday, underline the challenges posed by an increasingly tough tech spending environment. NetApp did not issue third-quarter revenue guidance, citing the difficulty of forecasting at a time of unusual economic uncertainty.
NetApp reported second-quarter profit of $49 million, or 15 cents a share, compared to $84 million, or 23 cents a share, in the year-ago quarter.
Excluding one-time items, NetApp earned $92 million, or 28 cents a share. Analysts had estimated earnings of 27 cents.
NetApp said revenue increased 15% from a year ago to $912 million, although it came in at the low-end of the company's guidance. During NetApp's fiscal first-quarter earnings call, the firm had pegged second-quarter revenue between $910 million and $940 million. Wall Street had estimated revenue of $904.58 million.
NetApp's shares rose 13 cents, or 1.25%, to $10.52 in after-hours trading.
"NetApp produced solid revenue and earnings results despite a challenging economic environment," said Dan Warmenhoven, the NetApp CEO, in a statement released late Wednesday.
Despite its sales growth, the storage company did not provide a third-quarter revenue forecast. In its statement, NetApp attributed the decision to "recent changes in the macro-economic environment". Analysts had estimated third-quarter revenue of $958.95 million.
NetApp, which competes with
, finds itself in a
difficult spending environment. The firm, for example, recently
cancelled its 2009 user conference in a clear indication of the impact of the economic slowdown.
Jefferies & Co.
lowered its NetApp price target to $13 from $20 in a note released Wednesday, citing weakness in the network-attached storage market and a slowdown in enterprise IT spending.