Network Appliance Says 3rd-Qtr Profit and Sales Fall (Update3)
By Jim Finkle
02/12 18:56
quote.bloomberg.com
Sunnyvale, California, Feb. 12 (Bloomberg) -- Network Appliance Inc., a maker of machines that store and deliver data on computer networks, reported a decline in fiscal third-quarter profit as it battled with rival EMC Corp. for market share.
Net income for the quarter ended Jan. 25 fell to $6.98 million, or 2 cents a share, from $34.1 million, or 9 cents, a year earlier, said Chief Financial Officer Jeffry Allen. Sales dropped 31 percent to $198.3 million from $288.4 million.
Excluding some expenses, profit topped analysts' forecasts, sending the company's shares up as much as 8.3 percent. Sales fell as customers cut purchases as they cope with the economic recession, while competition from EMC and others has intensified in the market for network-attached storage devices. Network Appliance's products help companies speed access to frequently used information on computer networks.
``It sounds like their business is more stable and may have turned the corner,'' said Steve Roth, a storage analyst with John Hancock Technology Funds, which owns EMC shares.
The Sunnyvale, California-based company's shares fell 86 cents to $16.45 before the release of earnings. They climbed as high as $17.81 in after-hours trading following the report. |
