NetApp Beats on Earnings

NetApp Inc. (NASDAQ:NTAP) reported upbeat earnings for its third quarter, while sales missed estimates.

The Sunnyvale, Calif.-based NetApp reported net revenues of $1.56 billion, growing 2% year-over-year. Product revenue of $967 million grew 2% year-over-year

What the company called "all-flash array annualized net revenue run rate" was $2.4 billion, increasing 19% year-over-year. Moreover, NetApp reported $649 million returned to shareholders in share repurchases and cash dividends

GAAP net income was $249 million, compared to GAAP net loss of $479 million in the third quarter of fiscal 2018; non-GAAP net income of $305 million, compared to non-GAAP net income of $289 million in the third quarter of fiscal 2018

GAAP net income per share was$0.98 compared to GAAP net loss per share of $1.79 in the third quarter of fiscal 2018; non-GAAP net income per share of $1.20, compared to non-GAAP net income per share of $1.05 in the third quarter of fiscal 2018

Said CEO George Kurian, "Although I am disappointed that revenue came in at the low-end of our guidance range, we continue to demonstrate discipline in how we manage the business. We are playing into the big market transitions from a position of strength and are focused on execution to maximize our opportunity in an uncertain macroeconomic environment.

"Our flash, hybrid cloud infrastructure, and AI solutions are serving as pillars of customers’ new architectures and we are seeing adoption of our cloud offerings as part of our customers’ foundation for moving applications and data to the cloud."

Shares faltered $5.65, or 8.4%, to $61.70