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.
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.