Network Appliance Results Disappointing
0Overall Score

Revenues slumped 14 percent for Network Appliance in the first fiscal quarter 2008 relative to the April quarter, despite increasing 11 percent to $621.3 million from the same time last year.

Earnings per share for the US-based network storage provider were US$0.09, compared with US$0.14 in the same quarter 12 months ago.

The company’s operating expenses for sales and marketing, research and development, and administrative functions were all up for the quarter to end of July relative to April.

One of the most notable cost jumps was apparent in sales and marketing, which climbed from US$195 million to over US$244 million.

R&D was up to US$106 million from US$88 million in April, and administrative was up $9 million to $41.4 million.

Income from operations for the quarter was down to $24.5 million from $56.5 million in April.

“We are clearly disappointed with our revenue growth this quarter, yet confident about our underlying business strength and continued health,” said Dan Warmenhoven, Chief Executive Officer.

“Our bookings growth and cash flow are both very encouraging, and we are optimistic about getting back on track for higher growth in revenue and profits going forward.”