NetApp (NTAP) swung to a net profit for the quarter ended Apr. 28, 2017. The company has made a net profit of $190 million, or $ 0.68 a share in the quarter, against a net loss of $8 million, or $0.03 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $239 million, or $0.86 a share compared with $157 million or $0.55 a share, a year ago. Revenue during the quarter grew 7.32 percent to $1,481 million from $1,380 million in the previous year period. Gross margin for the quarter expanded 237 basis points over the previous year period to 61.65 percent. Total expenses were 83.32 percent of quarterly revenues, down from 95.36 percent for the same period last year. This has led to an improvement of 1204 basis points in operating margin to 16.68 percent.
Operating income for the quarter was $247 million, compared with $64 million in the previous year period.
However, the adjusted operating income for the quarter stood at $306 million compared to $185 million in the prior year period. At the same time, adjusted operating margin improved 726 basis points in the quarter to 20.66 percent from 13.41 percent in the last year period.
"Our continued focus and disciplined execution yielded yet another quarter of solid results. We have regained momentum, returning the company to revenue growth and delivering against all of our fiscal year 2017 commitments," said George Kurian, chief executive officer. "By innovating to redefine traditional markets and to bring enterprise-grade technology to emerging areas of the market, we are gaining market share, expanding our addressable market, and creating new opportunities for NetApp."
For the first-quarter, NetApp expects revenue to be in the range of $1,240 million to $1,390 million. For fiscal year 2018, the company expects operating income to grow in the range of 14 percent to 16 percent. For fiscal year 2018, the company expects adjusted operating income to grow in the range of 18 percent to 20 percent. The company projects diluted earnings per share to be in the range of $0.30 to $0.38 for the first-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.49 to $0.57 for the first-quarter.
Operating cash flow improves marginally
NetApp has generated cash of $986 million from operating activities during the year, up 1.23 percent or $12 million, when compared with the last year. The company has spent $220 million cash to meet investing activities during the year as against cash inflow of $85 million in the last year.
The company has spent $1,179 million cash to carry out financing activities during the year as against cash outgo of $109 million in the last year period.
Cash and cash equivalents stood at $2,444 million as on Apr. 28, 2017, down 14.78 percent or $424 million from $2,868 million on Apr. 29, 2016.
Debt comes down
NetApp has recorded a decline in total debt over the last one year. It stood at $1,993 million as on Apr. 28, 2017, down 14.79 percent or $346 million from $2,339 million on Apr. 29, 2016.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
