Lots of strong forward guidance...
Wednesday August 18, 7:54 pm Eastern Time
Network Appliance's Q1 earnings climb 90 pct
(Adds CEO comments in 4th through 9th paras)
By Duncan Martell
PALO ALTO, Calif., Aug. 18 (Reuters) - Network Appliance Inc.'s fiscal first-quarter earnings climbed 90 percent -- ahead of estimates -- as the maker of software and equipment used to store computer data benefited from the continuing rapid growth of the Internet.
The company, based in Santa Clara, Calif., on Wednesday said profit for the period ended July 30 rose to $13.5 million, or 16 cents a share, from $7.1 million, or 10 cents, a year ago. That was slightly ahead of a 14 cents a share analyst consensus estimate, according to First Call/Thomson Financial.
Revenue at Network Appliance (Nasdaq:NTAP - news) -- which counts brokerage Bear, Stearns & Co., cell phone and chipmaker Motorola Inc. and Cisco Systems Inc. as customers -- climbed 80 percent to $103.3 million from $57.4 million.
''The quarter was a bit stronger than most analysts had expected from a revenue growth standpoint,'' said Dan Warmenhoven, Chief Executive. He added that his company's first quarter is typically its most challenging.
The company's products are also used to speed access to Web sites, and allow data to be pooled centrally and then accessed from any point along a network. Network Appliance also got a boost from rising sales to Internet service providers, Internet portals, Internet companies that do business solely online and for traditional companies boosting their e-commerce offerings.
Unlike traditional storage companies, Warmenhoven said, Network Appliance plugs its storage machines and software right on the network, without being attached to a computer.
Of the company's total bookings in the first quarter, 25 percent came from Internet, e-business and e-commerce companies, up from 20 percent in the fourth quarter and 16 percent in the third, Warmenhoven said.
He added that customers aren't exhibiting any signs of a slowdown in spending on technology and storage ahead of the Year 2000 date change. Business going forward looks ''extremely good,'' Warmenhoven said.
''Everybody's bringing up more e-based services,'' he said. ''And it's all network-attached information and that's what we provide. Everything's coming our way in a hurry.''
On a sequential basis, sales rose 14 percent over the $90.8 million it had in the fiscal fourth quarter, while earnings rose 25 percent from the $10.7 million reported in the prior quarter.
Shares of Network Appliance fell $1.19 to $55.13 on the Nasdaq. The company reported results after the close of regular U.S. trading.
Separately, the company said on Tuesday it had been ranked No. 4 on Fortune Magazine's list of America's fastest growing companies.
|
