NetApp Turns In Impressive Q4, Fiscal Year
The Sunnyvale, Calif.-based company surpasses the $5 billion annual income mark for first time and reports fiscal Q4 revenue of $1.428 billion, up 22 percent from 2010.Network storage provider NetApp (Nasdaq: NTAP) exemplified the ever-increasing commercial interest in cloud computing data storage May 25 by reporting better-than-expected quarterly results. The Sunnyvale, Calif.-based company reported fiscal Q4 revenue of $1.428 billion, up 22 percent and surpassing the $1.387 billion expected, according to a group of Thomson Reuters analysts.
Net profit for the quarter ended April 29 rose to $160.6 million, or 40 cents a share, from $145.1 million, or 40 cents a share, a year earlier. Excluding items, NetApp earned 59 cents per share. Analysts had expected earnings of 53 cents per share.
Earlier this month, NetApp completed the purchase of microchip maker LSI Corp's Engenio external storage system business for $480 million to help it expand in the rapidly growing bandwidth-intensive video and HPC (high-performance computing) markets. Dividends Not the Only Reward "I don't feel compelled to give cash back in the form of dividends, and things like that, as a way to stimulate shareholder return," Georgens, a former CEO of LSI Engenio, said. "I think a better way to provide that shareholder return is to deploy that money strategically, especially now that we're still growing." NetApp has gained market share from other competitors, moving from No. 5 in corporate data storage equipment to No. 3 behind EMC and IBM, market researcher IDC reported in its quarterly data storage tracker.