NetApp dismal show continues: Q2 revenue dips 0.47% to $1.5 bn

NetApp today said its Q2 fiscal 2015 revenue decreased 0.47 percent to $1,542.5 million, while net income dipped 4.2 percent to $159.8 million.

The company’s inability to expand in the EMEA and Asia Pacific region and win substantially in the US commercial markets forced NetApp to post dip in revenues.

In fact, NetApp has been recording marginal growth or decline in revenue for the past 10 quarters. In FY 2013, NetApp posted $1,444.6 million in Q1, $1,541.2 million in Q2, $1,630.1 million in Q3 and $1,716.5 million in Q4. In FY 2014, NetApp clocked $1,516.2 million in Q1, $1,549.9 million in Q2, $1,610 million in Q3 and $1,649 million in Q4. In FY 2015, NetApp recorded $1,489.2 million in Q1 and $1,542.4 million in Q2.

NetApp said its Q2 revenue (on quarter-on-quarter basis) contribution from Americas increased to 59 percent from 56 percent, US public sector revenue rose to 17 percent from 12 percent. Revenue contribution in Asia Pacific including India dipped to 13 percent from 14 percent, fell to 28 percent from 30 percent in EMEA, dropped to 42 percent from 44 percent in American commercials.

Tom Georgens, chairman and CEO of NetApp

The company also showed poor performance in NetApp product revenue that dipped to $929.1 million on year-on-year from $955.3 million and software business revenue fell to $224.2 million from $231.8 million, while service revenue increased to $389.2 million from $362.8 million during the second quarter of fiscal 2015.

NetApp in a statement said that Clustered Data ONTAP nodes shipped more than tripled, while Flash capacity shipped more than doubled year-over-year.

Tom Georgens, chairman and CEO of NetApp, said: “We have dramatically expanded the NetApp portfolio at an unprecedented pace. Our solutions not only solve the challenges enterprises face today, but ensure a seamless path to the hybrid cloud that enables customers to effectively manage their data across multiple cloud resources.”

As per the Q3 fiscal year 2015 outlook, NetApp said net revenues are expected to be in the range of $1.56 billion to $1.66 billion.

Baburajan K
[email protected]

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