NetApp profit falls, plans $1 bln share buyback

SAN FRANCISCO, Aug 15 Reuters) - Network Appliance Inc (NTAP.O: Quote, Profile, Research), a data storage-network equipment maker, on Wednesday posted a lower quarterly profit after some of its biggest customers cut orders, dampening revenue growth.

But the company also announced plans to repurchase as much as $1 billion of its stock, funded from working capital.

Shares of Network Appliance surged more than 9 percent.

Net income in its fiscal first quarter ended July 27 declined to $34.3 million, or 9 cents per share, from $54.7 million, or 14 cents per share, a year earlier. Revenue rose to $689.2 million from $621.3 million, but fell from the fourth fiscal quarter.

Network Appliance shares are down more than 35 percent since the company unexpectedly said on May 23 it expected first quarter revenue to decline 6 percent to 7 percent from the fourth quarter as large U.S. customers cut back on orders.

The company again surprised investors on Aug. 2 when it said it expected to report a sequential quarterly revenue decline of 14 percent to 15 percent, more than twice the earlier forecast.

(Reporting by Philipp Gollner)

((Editing by Braden Reddall; Telephone: +1 415 677-2547, E-mail: philipp.gollner@reuters.com)) Keywords: NETAPP RESULTS/

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