NetApp Profit Jumps, But Shares Fall On Weak Revenue |
| Wall Street Journal - Feb 16, 2011 |
NetApp Inc.'s (NTAP) fiscal third-quarter earnings jumped 60%, but the data-storage company's revenue results were hurt by component shortages, a problem seen continuing this quarter.
Investors were spooked by the news, sending shares down more than 8% initially in after-hours trading and recovered to trade down 4.1% at $56.12 following the company's conference call.
NetApp's revenue has surged 31% through the first nine months of its fiscal year as companies have spent money on new ways to store and access mounting troves of documents and media. However, the Sunnyvale, Calif., company is facing increasing competition as larger rivals like Dell Inc. (DELL), EMC Corp. (EMC) and International Business Machines Corp. (IBM) make acquisitions in this area.
The company recently released new products which executives said drove much more demand than the company had expected. As a result, the company ran up against component shortages.
Analysts pushed executives for a timetable when this ruffle would smooth out.
Read Full Article from Wall Street Journal
- Posted: 2011-02-16 21:50:07
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