* Expects fourth-quarter adjusted earnings $65-$70/share vs
* Forecasts fourth-quarter revenue of $1.7 bln-$1.8 bln vs
est $1.75 bln
* Third-quarter adjusted earnings $0.67/shr vs est $0.56/shr
* Revenue up 4 pct at $1.63 bln vs est $1.62 bln
By Chandni Doulatramani
Feb 13 Data storage equipment maker NetApp Inc
reported third-quarter results that beat market
estimates on growth in its services business, and forecast
current-quarter adjusted earnings above expectations.
The company expects adjusted earnings of 65 cents to 70
cents per share on revenue of between $1.70 billion and $1.80
billion for the fourth quarter.
Analysts were expecting adjusted earnings of 65 cents per
share on revenue of $1.75 billion, according to Thomson Reuters
Revenue from services rose 14 percent to $340.8 million in
the third quarter, while sales in its core equipment business,
which contributes about 70 percent to revenue, was marginally
lower at $1.06 billion.
The services business includes hardware maintenance,
professional and training.
Sales at its unbranded business fell 17 percent in the
quarter, Chief Executive Tom Georgens told Reuters. The business
caters to original equipment manufacturers (OEMs).
Georgens also flagged concerns on the debt crisis in Europe
and U.S. federal spending.
"We need to be careful (about macro-economic conditions) ...
We still have some concerns on Europe," Georgens said.
Europe, Middle East and Africa (EMEA) contributed about 30
percent to total sales of $6.23 billion for the year ended April
The company's net income rose to $158 million, or 43 cents
per share, in the third quarter, from $120 million, or 32 cents
per share, a year earlier.
Revenue rose about 4 percent to $1.63 billion.
Excluding items, the company earned 67 cents per share.
Analysts had expected adjusted earnings of 56 cents per
share on revenue of $1.62 billion.
The company's shares, which have gained more than 30 percent
in the last three months, closed at $35.82 on the Nasdaq on