NetApp Inc. (NASDAQ: NTAP) is scheduled to release its fiscal third-quarter earnings after the closing bell on Wednesday, May 25, 2011. Analysts, on average, expect the company to report earnings of 53 cents per share on revenue of $1.39 billion. In the year ago period, the company reported earnings of 50 cents per share on revenue of $1.17 billion.
NetApp, Inc. provides enterprise storage and data management software and hardware products and services in the United States and internationally. The Company offers solutions for storing, managing, protecting and archiving business data.
In the preceding fiscal fourth-quarter, the Sunnyvale, California-based company's net income was $172.5 million, or 42 cents per share, compared to $107.9 million, or 30 cents per share, in the year-ago quarter. On an adjusted basis, the company earned 52 cents per share in the latest quarter. Revenue increased to $1.27 billion from $1.01 billion. Analysts, on average, expected the company to report earnings of 50 cents per share on revenue of $1.28 billion.
At its last earnings call in February, NetApp said that it expects adjusted earnings in the range of $0.49 to $0.53 per share for the fourth quarter. Revenues for the quarter are expected to be about $1.380 billion, plus or minus 2 percent, which equates to approximately 15 percent to 20 percent year over year revenue growth.
NetApp is the third-biggest seller of external computer- storage systems -- technology that helps companies store information more efficiently while letting them access the data from anywhere. NetApp is doing well, despite the stiff competition from technical behemoths such as International Business Machines Inc. (NYSE: IBM) and EMC Corporation (NYSE: EMC) in the data storage and management software space.
NetApp is likely to continue gaining storage market share as increased adoption of cloud leads to higher demand for virtualized storage infrastructure. NetApp is making significant efforts to expand its share in the cloud storage. The firm recently acquired Akorri Networks, a virtualization software company that extends NetApp’s ability to provide customers with comprehensive tools to automate and analyze their shared IT infrastructures, efficiently deliver on service levels, and respond to rapidly changing business needs.
Among other developments, NetApp recently completed its acquisition of the Engenio external storage systems business, the company said Monday. The business data storage company announced the $480 million deal with LSI Corp. in March. The deal will allow NetApp to potentially expand its market reach. Engenio generated $705 million in revenue in 2010. The company expects the deal to be accretive to GAAP and non-GAAP earnings per share by the second quarter of 2012.
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