* Second-quarter adj profit/share $0.51 vs estimate $0.48
* Revenue $1.54 bln vs estimate $1.54 bln
* Sees third-quarter adj profit/share $0.53-$0.58
* Analysts expect third-quarter profit/share of $0.54
* Shares rise 12 percent after market
By Aurindom Mukherjee
Nov 14 Data storage equipment maker NetApp Inc's
second-quarter adjusted profit beat analysts'
expectations on higher service and maintenance revenue, and it
forecast a strong current quarter, sending its shares up 12
percent in extended trading.
The company, which competes with EMC Corp,
Hewlett-Packard Co and IBM Corp in the storage
equipment business, expects third-quarter adjusted profit of 53
cents to 58 cents on revenue of $1.58 billion to $1.68 billion,
largely above expectations.
NetApp has been struggling with falling sales as worsening
conditions in Europe exacerbate competition in the server
Chief Executive Tom Georgens on a conference call with
analysts acknowledged a slowing demand due to the macro-economic
conditions but said non-original equipment manufacturer sales
are holding up well.
FBN Securities analyst Shebly Seyrafi said the company was
going to have a strong new product cycle, with its recently
launched 3250 and 3220 platforms.
The 3250 and 3220 are the new series of midrange storage
platforms, which NetApp launched earlier this month.
The company's profit for the quarter ended Oct. 26,
excluding one-time items, was 51 cents per share. Analysts had
expected earnings of 48 cents per share, according to Thomson
Revenue rose about 2 percent to $1.54 billion, in line with
Software entitlements and maintenance sales were up about 11
percent at $219.4 million and services up about 11 percent at
NetApp shares were at $30.29 in extended trading. They
closed at $27.12 on Wednesday on the Nasdaq.
The company also expanded its share-repurchase program, with
a fresh $1.5 billion boost.