SUNNYVALE (dpa-AFX) - Data-storage systems maker NetApp Inc. (NTAP), Wednesday reported an increase in profit for the fourth quarter despite lower revenues, with the bottom line helped by smaller operating costs. Earnings for the quarter came in ahead of analysts' expectations, but revenues fell short of estimates. Moving ahead, the company detailed a weak outlook for the first quarter.
Sunnyvale, California-based NetApp's fourth-quarter profit rose to $197.0 million or $0.59 per share from $173.8 million or $0.47 per share last year.
Adjusted earnings for the quarter improved to $284.2 million or $0.84 per share from $252.5 million or $0.69 per share last year. On average, 36 analysts polled by Thomson Reuters expected earnings of $0.79 per share for the quarter. Analysts' estimates typically exclude special items.
NetApp's fourth-quarter revenues dropped to $1.65 billion from $1.72 billion last year. Thirty-three analysts had a consensus revenue estimate of $1.67 billion for the quarter.
Product revenues, the biggest contributor to the top line, dropped to $1.04 billion from $1.14 billion last year. Software entitlements and maintenance revenues remained flat at $227.5 million, while service revenues increased to $378.7 million from $351.7 million last year.
Sales and marketing costs dropped to $475.0 million from $510.2 million last year, while research and development expenses declined to $230.7 million from $243.4 million.
Looking forward to the first quarter, the company expects earnings of $0.32 to $0.37 per share, adjusted earnings of $0.53 to $0.58 per share and revenues between $1.420 billion and $1.520 billion. Analysts currently expect first-quarter earnings of $0.62 per share on revenues of $1.52 billion.
NTAP closed Wednesday's trading at $34.49, up $0.54 or 1.59%, on the Nasdaq. The stock, however, dropped $0.49 or 1.42% in after-hours trade.
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