NetApp sees 25-30 pct network storage industry growth
SAN FRANCISCO, May 8 (Reuters) - The data storage networking industry could see a 25 to 30 percent increase in revenue this year as corporate technology spending stabilizes, the chief executive of Network Appliance Inc. (NasdaqNM:NTAP - news) said on Wednesday.
CEO Dan Warmenhoven said he expected to top Wall Street's expectations that his company would have revenue around $950 million this year. "My personal goal is to make sure we get back to a billion," he told investors at a conference.
Corporate spending was stabilizing after more than a year of contraction, he said. "(That) is good news."
Storage sales as a whole would rise a few percent, and the lion's share would go to network-attached storage and storage area networks, the two converging types of dedicated data storage products that work with networks.
"That segment could grow 25-30 percent," he said, speaking at a J.P. Morgan conference. "We are setting our targets at trying to grow at better than the industry rate."
Network Appliance's products are essentially stacks of computer disks that attach to traditional computer networks, easing the load on servers by taking over the data storage role. It competes with EMC Corp. (NYSE:EMC - news) and major server vendors, but Warmenhoven said that Network Appliance was doing well.
"I don't think there is any competitor right now that has a lot of momentum," he said.
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