NetApp (NTAP) Tops Q3 EPS by 2c, Sales Miss; Guides Q4 Below the Street, Cut 12% of Workforce

NetApp (NASDAQ: NTAP) reported Q3 EPS of $0.70, $0.02 better than the analyst estimate of $0.68. Revenue for the quarter came in at $1.39 billion versus the consensus estimate of $1.45 billion.

GUIDANCE:

NetApp sees Q4 2016 EPS of $0.55-$0.60, versus the consensus of $0.73. NetApp sees Q4 2016 revenue of $1.35-1.5 billion, versus the consensus of $1.51 billion.

"NetApp's third quarter results demonstrate good progress in advancing our strategy and strong operational execution despite the challenging macroeconomic environment," said George Kurian, CEO. "To position NetApp for long-term success, we launched a transformation program designed to streamline the business and reduce our cost structure, while at the same time, maintaining our ability to invest in strategic opportunities. We are confident that we have the right strategy to further pivot the company toward the growth areas of the market and deliver long-term value."

NetApp, Inc. expects to reduce its worldwide headcount by approximately 12%. The reduction in workforce will be implemented through the end of the first quarter of fiscal 2017.

The Company expects to incur aggregate charges of approximately $60 to $70 million for employee terminations and other costs associated with the restructuring. The Company expects that most of these charges will be cash expenditures and that it will recognize the majority of these charges in the fourth quarter of fiscal 2016.

For earnings history and earnings-related data on NetApp (NTAP) click here.

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