Network Appliance's EPS Meets Views, Europe Sales Boost Rev
Dow Jones Newswires
February 18, 1999
This story originally appeared Wednesday.
By Rick Jurgens
PHOENIX (Dow Jones)--Network Appliance Inc. (NTAP) posted net income of 12 cents a share for the quarter that ended Jan. 29, in line with analysts expectations and up from 8 cents a year ago.
A strong performance in Europe boosted the company's third-quarter revenue, which was $75.6 million, up from $44 million a year ago, Chief Executive Dan Warmenhoven told Dow Jones. About 33% of third-quarter sales were in Europe, up from 19% in the second quarter, he said.
The Santa Clara, Calif., maker of network data storage devices sold about 800 units at an average price of about $70,000 during the quarter, Warmenhoven said.
Gross profit margin was 59.2%, reflecting the value of the software in the company's products, which combine "lightweight hardware with sophisticated software," Warmenhoven said.
Sales to Internet service providers and other Internet-related sales accounted for about 15% to 20% of total sales, he said.
The company has about 660 employees, including about 300 in sales and marketing. Spending in that area equaled 26% of total revenue, he said.
Net revenue for the company's third quarter was up 72% over a year ago. "The analysts expect us to continue growing at that rate," Warmenhoven said. "I'm only comfortable with history."
Contracts to include Network Appliance products in systems sold by original equipment manufacturers Dell Computer Corp. (DELL) and, in Japan, Fujitsu Ltd. (J.FUT) won't begin contributing to revenue until the first quarter of Network Appliance's next fiscal year, Warmenhoven said.
- Rick Jurgens; 602-258-2003; richard.jurgens@cor.dowjones.com
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