NetApp Posts Solid Revenue Growth in Q1

NetApp reports total product sales grew 51 percent and revenue was up 36 percent in Q1 2011 compared to Q1 2010.

Storage and data management solutions specialist NetApp reported that for the first quarter of fiscal year 2011, revenues totaled $1.14 billion, compared with revenues of $838 million for the same period a year ago.

For the quarter, which ended July 30, generally accepted accounting principles (GAAP) net income was $142 million, or $0.38 per share, compared with GAAP net income of $52 million, or $0.15 per share, for the same period in the prior year.

Non-GAAP net income for the quarter was $183 million, or $0.49 per share, compared with non-GAAP net income of $76 million, or $0.22 per share for the same period a year ago. "With total revenue growth for the quarter of 36 percent and product revenue growth of 51 percent year over year, NetApp has begun our fiscal year with great momentum," said Tom Georgens, NetApp president and CEO. "The NetApp value proposition allows customers to implement more flexible and efficient storage infrastructures at a lower cost. Our results indicate we are achieving clear customer preference as IT organizations transform their data centers."

In the first quarter, NetApp expanded its relationships with Microsoft and other partners to help service providers better manage their virtualized environments and build internal and public clouds. In addition, NetApp's integration with the Microsoft Dynamic Data Center Toolkit for Hosters helped enable service providers to make data protection a possibility for their small to medium-size business (SMB) customers.

The company also released SnapManager 6.0 for Microsoft SharePoint 2010, designed to help customers improve scalability, optimize storage resources and reduce costs, and unveiled an end-to-end Fibre Channel over Ethernet (FCoE) solution for the dynamic data center with partners Cisco and VMware. The NetApp RTP dynamic data center also became the first data center to earn the U.S. Environmental Protection Agency's Energy Star rating for its energy efficiency. NetApp said the data center has reduced CO2 emissions for the company by approximately 95,000 tons per year.

NetApp estimated revenue for the second quarter of fiscal year 2011 to be in the range of $1.16 billion to $1.21 billion and share count for the second quarter of fiscal year 2011 to increase by about 6 million shares. The company also estimated that the second quarter of fiscal year 2011 GAAP earnings per share will be approximately $0.35 to $0.38 per share, while the second quarter fiscal year 2011 non-GAAP earnings per share will be approximately $0.47 to $0.50 per share.