NetApp’s fourth quarter financial results missed Wall Street expectations, with the data storage vendor reporting a drop in both product and hardware revenues. NetApp’s guidance for the current quarter also fell well below estimates and the company’s shares tumbled more than 6% in after hours trading.
For Q4, NetApp reported non-GAAP net income of $396 million, or $1.59 per share, on revenue of $1.59 billion, down from $1.64 billion the year prior. Non-GAAP earnings were $1.22 per share. Wall Street was looking for earnings of $1.26 per share on revenue of $1.65 billion.
For the full fiscal year, NetApp’s revenue came to $6.15 billion, an increase of 4% over fiscal 2018, with non-GAAP earnings of $4.52 per share. NetApp said product revenue for fiscal year 2019 grew 7% annually while all-flash revenue grew 25% year-over-year.
“Despite the modest shortfall relative to our fiscal year 2019 expectations, we made significant progress in the strategic markets of all-flash, private cloud, and cloud data services,” said chief executive George Kurian. “Our Data Fabric strategy clearly differentiates us from our competitors. Our opportunity is large and growing, and we are moving quickly to improve our execution.”
For the first quarter of 2020, NetApp said it expects non-GAAP earnings per share between 78 cents and 86 cents and revenue in the range of $1.315 billion and $1.465 billion. Wall Street was predicting non-GAAP EPS of $1.05 on $1.5 billion of revenue.
For the year, analysts are looking for NetApp to deliver earnings of $5.01 per share on revenue of $6.42 billion. NetApp said revenues are expected to grow at the low-end of mid-single-digit range.
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