Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (10152)	5/14/2002 7:42:49 PM
From: puborectalis	Respond to of 10934

Network Appliance Meets Earnings but Revenue Disappoints By Kenneth Li Senior Writer 05/14/2002 07:13 PM EDT Data storage-equipment maker Network Appliance (NTAP:NYSE - news - commentary - research - analysis) reported fourth-quarter 2002 results, matching earnings expectations but missing on revenue, disappointing investors. The Sunnyvale, Calif., company reported fourth-quarter net income after one-time charges of $7.8 million, or 2 cents a share, compared with $0.5 million, or break-even per share, a year ago. Pro forma net income was $14.6 million, or 4 cents a share, compared with $7.9 million, or 2 cents a share in the same period a year earlier. Analysts' expectations were for earnings of 4 cents a share. Net sales rose sequentially 2.8% to $204 million in the quarter, a number that was shy of analysts' estimates of $206.53, according to Thomson Financial/First Call. Revenue is down from $225 million in the same period last year. The company said it restructured its synthetic leases by buying the land and buildings at its headquarters for $249.9 million, "converting restricted investments to property and equipment on the balance sheet." It also took a restructuring charge of $4.2 million, related to an engineering facility closure; the facility moved back to the company's headquarters. Shares of the company gained 4.10%, or 71 cents, to $18.04, in anticipation of beating analysts' expectations. Investors were disappointed. After-hours trading activity sent shares down 6.6% to $16.85. The company released earnings news after the bell. For its fiscal year 2002, revenue was $798.4 million, compared with $1 billion for 2001. Net income on an as-reported basis after charges was $3 million, or 1 cent per share, compared with net income of $74.9 million, or 21 cents a share, for last year. Pro forma net income for 2002 was $42.5 million, or 12 cents a share, compared with a pro forma net income of $116.4 million, or 32 cents a share. The company is closely monitored, because it is viewed as a harbinger for the storage business and for the rest of the tech sector.