NetApp Beats in Q2

NetApp Inc. (NASDAQ: NTAP) reported better-than-expected earnings for its second quarter.

The Sunnyvale, Calif-based company reported net revenues of $1.37 billion, compared to $1.52 billion in the second quarter of fiscal 2019. Net revenues in the second quarter of fiscal year 2019 included $20 million from enterprise software license agreements which did not repeat in the second quarter of fiscal year 2020.

GAAP net income of $243 million, compared to GAAP net income of $241 million in the second quarter of fiscal 2019; non-GAAP net income of $257 million, compared to non-GAAP net income of $280 million in the second quarter of fiscal 2019

GAAP net income per share of $1.03 compared to GAAP net income per share of $0.91 in the second quarter of fiscal 2019; non-GAAP net income per share of $1.09, compared to non-GAAP net income per share of $1.06 in the second quarter of fiscal 2019

Cash and cash equivalents were $3.0 billion at the end of the second quarter of fiscal 2020.

Third-quarter net revenues are forecast for between $1.39 billion and $1.54 billion, while GAAP EPS is slated for the range of 96 cents to $1.04, non-GAAP EPS projected between $1.14 and $1.22.

During the second quarter, NetApp announced a series of innovative offerings at VMworld 2019 that enable customers to have simplified, scalable, high-performance infrastructure for any cloud at their fingertips: NetApp HCI for VDI with VMware Horizon 7, NetApp Kubernetes Service (NKS) and NetApp HCI Implementation Service for VMware Private Cloud.

Shares hiked $1.51, or 2.5%, to $61.58