Network Appliance

(NTAP) - Get Report

on Tuesday delivered the solid third quarter Wall Street was expecting, but the network storage provider's outlook for sales in the first quarter was on the light side.

Traders quickly pushed the stock down in after-hours trading; shares were recently off $4.54, or 13.2%, to $29.82. The stock closed the regular trading day at $39.99, a gain of 37 cents, or 1.1%.

Revenue for the third fiscal quarter was $412.7 million, an increase of 39% compared with revenue of $297.3 million for the same period a year ago and a 10% increase compared with $375.2 million in the prior quarter. The Sunnyvale, Calif.-based company earned a profit of $60.1 million, or 16 cents per share, compared with net income of $40.2 million, or 11 cents a share, last year.

Excluding items, net income was up 57% to 16 cents a share.

Analysts polled by Thomson First Call were expecting a pro forma profit of 16 cents a share on sales of $406.47 million.

Looking to the first, or April quarter, the company said it expects revenue to grow sequentially by 6% to 9%, which is equivalent to a range of $437.62 million to $449.83 million. Wall Street was expecting $449.9 million. Net income, the company said, likely will range from 16 cents to 17 cents a share on a pro forma basis; analysts were expecting 16 cents a share.