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Network Appliance Revenue Up 28%, Guidance In Line

Earnings and revenue were roughly in line with Wall Street expectations.
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Updated from 4:50 p.m. EST

As expected,

Network Appliance

(NTAP) - Get NetApp, Inc. Report

on Tuesday reported that second-quarter revenue was up 28% year over year while profits more than doubled. The company also gave earnings and revenue guidance roughly in line with Wall Street expectations for the current quarter.

Net income in the October quarter, the second of fiscal 2004, was $48.4 million, or 13 cents per share, compared with $15.8 million, or 5 cents a share, a year ago, according to generally accepted accounting principles.

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Revenue was $275.6 million, compared with $215.2 million in the corresponding quarter last year.

The latest results included a gain of $16.8 million associated with a favorable tax ruling in the Netherlands, the company said. Excluding items, the company would have earned 9 cents a share.

Earnings and revenue were roughly in line with Wall Street's expectations.

Chief Financial Officer Steve Gomo said the company expects pro forma third-quarter net income of 10 cents to 11 cents a share on sequential revenue growth that will range from 3% to 7%. The forecast was close to the consensus of analysts polled by Thomson First Call: EPS of 10 cents a share and revenue of $288.56 million.

Network Appliance develops storage-related system software and bundles it with standard hardware and sells the resulting product as a computing appliance.

At the close of regular trading, NTAP was off 89 cents, or 3.7%, to $23.43, and was slipping another $1.11 per share after hours.