Network Appliance CEO: Growth Is Main Challenge
May 18, 2000
Dow Jones Newswires
By RICK JURGENS
PALO ALTO, Calif. -- Network Appliance Inc. (NTAP) posted fourth-quarter earnings per share that beat analysts' estimates by a penny, and more than doubled its year-ago revenue.
"Business remains extremely strong," said Dan Warmenhoven, the company's chief executive, in an interview with Dow Jones Newswires. "Demand for storage seems to be increasing."
The Sunnyvale, Calif., maker of data-storage equipment for networks posted net income of $24.5 million or 7 cents a share, up from $10.7 million or 3 cents a share a year ago. It posted revenue of $200 million for the quarter, which ended April 28, up from $90.8 million a year ago.
Enterprise database equipment accounted for 18% of new orders booked during the quarter, up from 6% a year ago, Warmenhoven said.
The company's share of the network database storage market rose to 60%, up from 45% a year ago, he said.
"Scaling" - increasing operations to meet growing demand - is the main challenge facing the company, Warmenhoven said. Hiring is a challenge, as is finding space to put new employees to work, he said.
On Wednesday, Network Appliance named Tom Mendoza as president. Mendoza was the company's senior vice president of sales and marketing. Warmenhoven, who previously filled both the chief executive and president jobs, said the move was made in response to the company's growth.
-Rick Jurgens; Dow Jones Newswires; 650-496-1367; richard.jurgens@dowjones.com |
