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Virtualization Boosts NetApp's Q1

NetApp posted strong first quarter results last night, reporting revenues of $869 million, a 26 percent hike on the same period last year. Although the first quarter figures were down 7 percent sequentially, NetApp comfortably beat analyst estimates of $861.6 million, underlining the comparative health of the storage sector.

Like Brocade, which reported its third quarter results earlier this week, NetApp has managed to side-step the spending slowdown that has hit many tech sector firms.

"We do not see any significant changes in the general spending patterns of our customers or prospects," said NetApp CEO Dan Warmenhoven, during a conference call last night. "While there is broad concern about the global economic environment, most enterprises continue to invest in their infrastructure to improve operating efficiency."

The vendor reported first quarter earnings of 11 cents on net income of $38 million, compared to 9 cents and $34 million in the same period last year. On a non-GAAP basis, NetApps earnings were 22 cents on net income of $76 million, compared to 20 cents and $76 million in the first quarter of 2007. Analysts had estimated earnings of 22 cents.

NetApp was widely expected to post good results this week, buoyed by healthy demand for storage.

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