Nov 14 Storage equipment maker NetApp Inc
reported a second-quarter profit that beat analysts'
expectations as higher service and maintenance revenue offset
weak product sales, sending its shares up 11 percent.
The company also forecast third-quarter results largely
above expectations, allaying investor concerns that worsening
conditions in Europe would hit earnings. The company gets almost
a third of its sales from Europe.
NetApp expects third-quarter adjusted profit to be between
53 cents and 58 cents, on revenue of $1.58 billion to $1.68
billion. Analysts on average were expecting a profit of 54 cents
per share, on revenue of $1.61 billion, according to Thomson
Profit fell to $110 million, or 30 cents per share, in the
second-quarter from $166 million, or 44 cents per share, a year
Revenue rose about 2 percent to $1.54 billion.
Excluding one-time items, earnings were 51 cents per share.
Analysts had expected a profit of 48 cents per share on
revenue of $1.54 billion.
NetApp shares were trading at $30.12 in extended trade. They
closed at $27.12 on Wednesday on the Nasdaq.