Solution providers are playing a big role in helping move NetApp's business toward its new strategic technologies, which contributed to solid growth in profitability during the storage company's first fiscal quarter of 2017, said CEO George Kurian Wednesday as the company disclosed its most recent quarterly financial results.
NetApp's move away from its mature legacy technology toward modern strategic offerings such as all-flash storage led to a slight drop in revenue for the quarter but helped boost profits.
"We work closely with the channel to accelerate our offerings to market," Kurian said during the company's quarterly financial analyst conference call. The channel accounted for 77 percent of NetApp's total revenue.
"We're building competitive offerings, and bringing our cost structures to be more competitive," he said.
NetApp reported total revenue for its first fiscal quarter 2017, which ended July 29, of $1.29 billion. That was down about 4 percent from the $1.34 billion the company reported for the first fiscal quarter of 2016.
For the Americas, revenue in the first fiscal quarter of 2017 was about $735 million, down from last year's $750 million.
NetApp reported fiscal first quarter 2017 earnings of $64 million, or 23 cents per share, up significantly from is loss of $30 million, or 10 cents per share, last year.