U.S. Markets closed

NetApp fiscal 1Q net income up, but shares slump

NEW YORK (AP) -- Data storage company NetApp Inc. said Wednesday its net income rose 28 percent in the fiscal first quarter, but its shares weakened in after-hours trading.

The Sunnyvale, Calif., company said its total revenue grew 5 percent and product costs decreased. Product revenue rose 4 percent but fell short of Wall Street expectations.

The company said its net income rose to $81.6 million, or 23 cents per share, from $63.8 million, or 17 cents per share. Excluding one-time items, NetApp said it earned 53 cents per share in the quarter ended July 26. Revenue increased to $1.52 billion from $1.44 billion, with product revenue growing to $930.8 million

Analysts expected income of 49 cents per share and $1.53 billion in revenue, according to FactSet. That included about $953 million in product revenue.

Looking ahead, NetApp is forecasting income of 60 to 65 cents per share in the fiscal second quarter on $1.56 billion to $1.66 billion in revenue. Analysts expect 63 cents per share and revenue of $1.62 billion, on average.

NetApp's shares fell $1.61, or 3.8 percent, to $40.72 in late trading. The stock rose 4 cents to $42.33 during the regular session Wednesday.