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NetApp on Wednesday reported growth in revenue and income for its fiscal second quarter 2013 that was pretty much in line with expectations, and it said that its sales through indirect channels are continuing to grow as a percentage of total revenue.
NetApp also said it acquired CacheIQ, the small developer of RapidCache NAS acceleration appliances that use a combination of DRAM and SSDs to cache data for important applications.
Nick Noviello, CFO and executive vice president of finance at NetApp, told CRN that his company overall had a good quarter.
"On the financial side, we continued to do what we said we will do," Noviello said. "There had been some doubts, but we did what we said."
That includes hitting roughly the midpoint of the company's expected revenue and gross margins but being above guidance on operation margins and earnings per share, he said.
For its fiscal second quarter 2013, which ended Oct. 26, NetApp reported revenue of $1.54 billion, up about 2 percent from the $1.51 billion the company reported for the second quarter of 2012.
GAAP income for the second quarter was $110 million, or 30 cents per share, down 36 percent from the $166 million, or 44 cents per share, NetApp reported during the second quarter of 2012. Non-GAAP net income was $189 million, or 51 cents per share, down 23 percent from last year's non-GAAP net income of $236 million, or 63 cents per share.
Tom Georgens, NetApp president and CEO, said his company's branded revenue during the quarter rose 4 percent over last year, while OEM revenue fell 9 percent.
NetApp also saw a 20 percent year-over-year rise in deals worth at least $1 million, and its largest customer now has over 1 exabyte in capacity using the company's storage arrays, Georgens said.
"In what has become a challenging economic environment, NetApp has had a very strong quarter," he said.
The channel continues to do well for NetApp, Noviello said. About 82 percent of NetApp's overall revenue came from channel partners, with about 34 percent of total revenue coming from its two distributors, Arrow and Avnet, which Noviello called an all-time high.
"NetApp is a partner-friendly company," he said. "Certainly, we're partner-friendly in our FlexPod and ExpressPod business and in our work direct with channel partners."