(Reuters) – NetApp reported first-quarter revenue above Wall Street estimates on Wednesday, driven by strong demand for cloud based services from businesses.
Enterprise spending on cloud held strong as businesses moved to upgrade their technology infrastructure that is core to their operations and also incorporate newer AI capabilities. Business operations are being shifted to cloud storages from traditional shared storages.
NetApp’s flash-based solutions and products are helping the company capitalize on the need for virtualized IT infrastructure. IT businesses are readily switching to the more cost-effective and faster flash-based storage systems.
For the second quarter, the company expects to report net revenues between $1.46 billion and $1.61 billion and adjusted profit between $1.35 and $1.45 per share. The mid-point of the forecasts were above analysts’ estimates.
NetApp also reiterated its profit and revenue outlook for fiscal 2024.
NetApp’s total revenue for the quarter ended July 28 was $1.43 billion, compared to analysts’ estimate of $1.41 billion, according to Refinitiv data.
The company earned an adjusted profit of $1.15 per share, which beat expectations of $1.07 per share.
Shares of the Sunnyvale, California-based company fell about 1.2% in trading after the bell.
(Reporting by Yamini Kalia in Bengaluru; Editing by Shailesh Kuber)
