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Stock Market Update - Thu Nov 15 09:33:08 EST 2007

Thu Nov 15, 2007 9:33am EST

Network Appliance (NTAP 26.61) firmly beat analysts' expectations for its fiscal second quarter, and issued upside guidance for the current period, despite ongoing concerns about the economy and continued weakness in spending by U.S. corporations.  Its shares traded higher on the news, gaining more than 3% in pre-market activity.

Network Appliance earned $83.8 million, or $0.23 per share, in the second quarter, compared with $86.9 million, or $0.22 per share, in the year ago period.  Excluding acquisition-related costs and other one-time items, earnings were $0.32 per share.  On the same basis, analysts were expecting a more modest profit of $0.26 per share. 

Revenue, meanwhile, rose 21.4% year-over-year to $792.2 million, also beating the consensus estimate of $760.3 million, as strong demand from the U.S. government, Europe, and Asia more than offset sluggishness in U.S. enterprise spending. 

Despite continued weakness in large U.S. enterprises and economic uncertainty, Network Appliance forecast third quarter results ahead of analysts' expectations.  The company expects to post earnings of $0.33 to $0.34 per share, ex-items, on revenue between $872 million and $883 million.  That compares with the consensus estimate of $0.32 per share on $854.93 million in revenue. 


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