NetApp 2nd-qtr profit falls 6 pct as costs rise
Data storage company NetApp Inc. said Wednesday that its fiscal second-quarter profit fell 6 percent despite higher sales, mainly due to higher expenses.
Its adjusted net income came in above Wall Street expectations, but revenue was shy of estimates. NetApp's outlook for revenue and net income in the current quarter also came short of Wall Street views and its shares tumbled in extended trading.
For the three months ended Oct. 28, the company said its net income slipped to $165.6 million, or 44 cents per share, from $175.4 million, or 45 cents per share, in the prior-year period.
Excluding one-time items, adjusted profit came to 63 cents per share.
Revenue rose 20 percent to $1.51 billion, from $1.25 billion last year.
Analysts, on average, were expecting profit of 60 cents per share, on revenue of $1.55 billion, according to data provided by FactSet.
Operating expenses rose 19 percent to $710.6 million, with spikes in both sales and marketing costs and research and development spending.
The company said it expects fiscal third-quarter adjusted profit to fall between 56 cents and 60 cents per share, on revenue in a range between $1.52 billion to $1.61 billion.
Wall Street was expecting adjusted profit of 63 cents per share, on sales of $1.65 billion.
NetApp shares fell $2.75, or 6.8 percent, to $37.99 in aftermarket trading, after closing down 2.8 percent at $40.74.