Widespread need for electronic storage systems has helped fuel Network Appliance's revenue and income in the second quarter of FY04.
Revenues increased 36 percent to $375.2 million, compared with $275.6 million in the second quarter of FY03. GAAP net income increased 14 percent to $55.3 million, compared with GAAP net income of $48.4 million in the year-ago period.
For the six month period, revenues climbed 37 percent to $733.6 million, compared with $536.1 million for the first six months of FY03. GAAP net income increased 35 percent to $102.2 million, compared with GAAP net income of $75.5 million in the year-ago period.
"NetApp achieved strong growth across all product lines, segments, and geographies," said Dan Warmenhoven, CEO. "NetApp is gaining momentum in the highest growth segments of the storage market by offering innovative and cost-effective solutions for today's IT challenges. Data ONTAP 7G, our next generation operating system [announced this week], is an example of technology which empowers customers to do more with less. Data ONTAP 7G provides dynamic storage virtualization capabilities unmatched in the industry."
Throughout the second quarter of FY04, NetApp introduced new security and compliance systems, expanding partnerships, and continued to grow iSCSI deployments. Siemens Corporate Research (SCR), a division of Siemens AG, became the 750th iSCSI customer deployment in IP SAN (storage area network) configurations. IP SAN configuration consolidates storage and server resources, maximize existing IT investments and headcount, and reduce complexity in the data center.
NetApp said it anticipates that revenue for the third quarter will grow sequentially by 7 percent to 9 percent. For the full FY05, NetApp estimates that revenues will finish 35 percent to 37 percent higher than FY04.