AI
Network Appliance Sales Top Estimates; Shares Surge (Update3)
By Connie Guglielmo
Nov. 14 (Bloomberg) -- Network Appliance Inc., the maker of data-storage computers for the U.S. Army, reported second-quarter revenue that topped estimates and forecast earnings that exceeded analysts' projections. The shares surged as much as 13 percent.
Sales rose 21 percent to $792.2 million in the quarter ended Oct. 26, the Sunnyvale, California-based company said today in a statement. That beat the average analyst projection of $759.7 million in a Bloomberg survey. Network Appliance had forecast revenue of as much as $768 million.
Sales to the U.S. government and customers in Europe and Asia helped compensate for ``continued sluggishness' in U.S. business spending, Chief Executive Officer Daniel Warmenhoven said. The company forecast third-quarter profit, excluding some costs, of 33 cents to 34 cents a share on revenue of at least $872 million. Analysts had anticipated profit of 32 cents on $856.1 million in sales.
``We have a very healthy backlog position going into the quarter,' Chief Financial Officer Steven Gomo said in an interview. ``With our international business and our healthy pipeline, we should be in pretty good shape.'
Network Appliance rose as much as $3.37 to $29.98 in extended trading after dropping 34 cents to $26.61 today on the Nasdaq Stock Market. The shares have declined 32 percent this year.
Net income fell 3.7 percent to $83.8 million, or 23 cents a share, from $86.9 million, or 22 cents, a year earlier.
The company plans to cut prices this quarter on some products offered through its partners to boost market share, a move that will weigh on margins, Gomo said. Network Appliance also anticipates adding 300 to 350 employees to expand its sales force, he said.
By Connie Guglielmo
Nov. 14 (Bloomberg) -- Network Appliance Inc., the maker of data-storage computers for the U.S. Army, reported second-quarter revenue that topped estimates and forecast earnings that exceeded analysts' projections. The shares surged as much as 13 percent.
Sales rose 21 percent to $792.2 million in the quarter ended Oct. 26, the Sunnyvale, California-based company said today in a statement. That beat the average analyst projection of $759.7 million in a Bloomberg survey. Network Appliance had forecast revenue of as much as $768 million.
Sales to the U.S. government and customers in Europe and Asia helped compensate for ``continued sluggishness' in U.S. business spending, Chief Executive Officer Daniel Warmenhoven said. The company forecast third-quarter profit, excluding some costs, of 33 cents to 34 cents a share on revenue of at least $872 million. Analysts had anticipated profit of 32 cents on $856.1 million in sales.
``We have a very healthy backlog position going into the quarter,' Chief Financial Officer Steven Gomo said in an interview. ``With our international business and our healthy pipeline, we should be in pretty good shape.'
Network Appliance rose as much as $3.37 to $29.98 in extended trading after dropping 34 cents to $26.61 today on the Nasdaq Stock Market. The shares have declined 32 percent this year.
Net income fell 3.7 percent to $83.8 million, or 23 cents a share, from $86.9 million, or 22 cents, a year earlier.
The company plans to cut prices this quarter on some products offered through its partners to boost market share, a move that will weigh on margins, Gomo said. Network Appliance also anticipates adding 300 to 350 employees to expand its sales force, he said.
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
