NetApp revenue misses estimates; to cut jobs

(Reuters) – NetApp Inc (O:), a data storage equipment maker, reported lower-than-expected quarterly revenue, hurt by weak demand for its storage products, and said it would cut about 12 percent of its workforce.

Shares of the company, which also forecast fourth-quarter earnings well below analysts’ estimates, were down 2.8 percent at $22.90 in extended trading.

NetApp said it expected a profit of between 55 cents and 60 cents per share for the current quarter. Analysts on average were expecting a profit of 72 cents, according to Thomson Reuters I/B/E/S.

Net income fell to $153 million, or 52 cents per share, in the third quarter ended Jan. 29 from $177 million, or 56 cents per share, a year earlier.

Excluding items, the company earned 70 cents per share.

The company’s products revenue fell 19.3 percent to $750 million in the third quarter.

Total revenue fell 10.6 percent to $1.39 billion.

Analysts estimated a profit 68 cents per share on revenue of $1.45 billion.

NetApp had about 12,810 employees as of April 24, 2015, according to a regulatory filing.

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