NetApp's rev forecast below estimates, stock drops

Reuters News
Posted: Jun 07, 2012 3:00 PM
NetApp's rev forecast below estimates, stock drops

By Noel Randewich

SAN FRANCISCO (Reuters) - Data storage equipment maker NetApp Inc <NTAP.O> forecast revenue below expectations as concerns about the economy weighed on the outlook for business and government spending on information technology, sending its shares down 22 percent in after-hours trade.

NetApp's report Wednesday came a day after Dell Inc <DELL.O> posted disappointing quarterly results that heightened concerns about cautious IT spending, sending tech stocks sharply lower.

Sunnyvale, California-based NetApp posted fiscal fourth-quarter revenue of $1.70 billion compared to $1.43 billion in the year-ago period.

"NetApp's outlook for the first quarter of fiscal year 2013 reflects the normal slower seasonality of the first quarter and increasing uncertainty in the broader macro environment," the company said in a statement.

NetApp said it expects current-quarter revenue to be in the range of $1.40 billion to $1.50 billion. Analysts had expected NetApp to post $1.684 billion in revenue for the quarter ending in April and $1.606 billion for the quarter ending in July, according to Thomson Reuters I/B/E/S.

NetApp's net income for the fourth quarter was $181 million, or 47 cents a share, according to generally accepted accounting principles, compared to $161 million, or 40 cents a share, in the same quarter last year.

Shares of NetApp fell 22 percent to $25.55 in extended trading after closing down 1.3 percent at $32.86 in the regular session on Nasdaq.

(Reporting By Noel Randewich; Editing by Carol Bishopric)