Channel Helps Boost NetApp Revenue

For the quarter ended April 30, the Sunnyvale, Calif.-based storage giant reported revenue of $451.8 million, up 34 percent compared to the $337.0 million it reported for the same quarter a year ago.

NetApp also reported net income of $63.4 million, or 16 cents per share, up 74 percent from the $36.4 million, or 10 cents per share, it reported last year.

For the entire year, revenue hit $1.6 billion, up 37 percent from the $1.12 billion it reported last year. Earnings were up 48 percent at $225.8 million, or 59 cents per share, compared to last year's $152.1 million, or 42 cents per share.

Steve Gomo, CFO for NetApp, said that indirect channels, excluding OEM sales, accounted for 51 percent of revenue this past quarter, up from about 42 percent last year. "So the channel is having a major contribution to our business," he said.

In the current quarter, NetApp expects revenue to grow by 3 percent to 6 percent compared to the fourth quarter, with earnings expected to hit 16 cents or 17 cents per share, said Gomo. For fiscal year 2006, revenue is projected to grow between 32 percent and 35 percent compared to 2005, with earnings expected to hit 73 cents to 77 cents per share. "We expect the channel business to grow at least as fast as the company's growth rate," he said.