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

To: Uncle Frank who wrote (10325)	11/12/2002 4:21:56 PM
From: Normandi	Read Replies (2) \| Respond to of 10934

Uncle Frank. YES!! Cheers ~Norm

To: Uncle Frank who wrote (10325)	11/12/2002 11:01:22 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 10934

Network Appliance Swings To 2Q Profit DOW JONES NEWSWIRES SUNNYVALE, Calif. -- Network Appliance Inc. (NTAP) turned to a net profit in its fiscal second quarter amid an 11% increase in revenue. The maker of data-storage systems late Tuesday reported net income of $15.8 million, or five cents a share, compared with a net loss of $11.2 million, or three cents a share, a year earlier. The company also posted pro forma results, which it defined as excluding amortization of goodwill and intangible assets, stock compensation, restructuring charges, impairment loss on investment, gain on sale of intangible asset and the related effects on income taxes. On a pro forma basis, Network Appliance said it had earnings of $17.5 million, or five cents a share, matching the mean estimate of analysts surveyed by Thomson First Call. In the year-earlier quarter, the company had pro forma earnings of $7.7 million, or two cents a share. Revenue rose to $215.2 million from $194.7 million a year earlier. "We are encouraged by our growth during this quarter despite constrained [information technology] spending," Dan Warmenhoven, Network Appliance's chief executive, said in a prepared statement. "Key initiatives through partnerships, programs, and services also enabled us to broaden our enterprise customer base within our target vertical markets." Warmenhoven said in an interview that the economy continues to be "pretty sluggish" with spending very constrained among its customers. "I haven't seen any further declines," Warmenhoven said. "This is the time of year that customers spend the rest of their budgets," said Warmenhoven, noting that he isn't seeing evidence of this historical trend taking place this year. In the interview, Mr. Warmenhoven said the company sees revenue in its third fiscal quarter growing 2% to 5% to about $219 million to $225 million, as compared with its second-quarter results. In the third quarter, pro forma earnings, excluding charges, are estimated at between five cents and six cents a share, depending on revenue, he said. Warmenhoven also said that Network Appliance finally saw strength in sales coming from North America after struggling during several previous quarters. However, the company began seeing some weakness in central Europe, particularly Germany, where major manufacturers are beginning to feel the effects of the sluggish global economy.