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NetApp Reports Q1, Nudges Forward

NetApp announced its first-quarter results last night, beating analyst estimates as the vendor attempts to emerge from a tough spending climate. (See NetApp Announces Q1, Spending Slowdown Slams NetApp, and NetApp Reports Preliminary Q1.)

That spending climate was blamed when NetApp cut its Q1 guidance earlier this month, as large enterprises tightened their purse strings. (See Storage Spending Knocks NetApp, HP's Storage Slowdown, Storage Shades Sun's Q4, and Overland Struggles With 'Softness'.)

NetApp's first-quarter revenues were $689.2 million, up 11 percent on the same period last year and up over analyst estimates of $685.22 million. GAAP earnings were 9 cents per share on net income of $34.3 million, down from 14 cents and $54.7 million in the first quarter of fiscal 2007.

On a non-GAAP basis, NetApp's earnings were 20 cents on net income of $76 million, down from 25 cents and $96.6 million in the year-ago quarter. Analysts had estimated earnings of 19 cents.

Speaking on a conference call last night, NetApp CEO Dan Warmenhoven called the last few months difficult. "A number of our top enterprise accounts and many of our enterprise accounts paused a meaningful portion of their spending in the first quarter," he said, adding that the number of deals over $1 million dropped 27 percent sequentially.

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