What happened
Shares of NetApp (NTAP 1.44%) have plunged today, down by 10% as of 11:45 a.m. EST, after the cloud data services provider reported fiscal third-quarter earnings results. NetApp missed earnings expectations, cut its revenue guidance, and said its CFO was retiring.
So what
Revenue in the fiscal third quarter was $1.4 billion, down from $1.56 billion a year ago. That translated into adjusted net income of $265 million, or $1.16 per share, which was shy of the $1.18 per share in adjusted profits that analysts were modeling for. The tech company ended the quarter with $3 billion in cash on the balance sheet.
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"Customers are on a journey to the cloud and are looking to NetApp to help them address the complexities of data management in hybrid multicloud," CEO George Kurian said in a statement. "We see significant opportunity ahead and are focused on replicating the areas where we have proven success."
Now what
NetApp's CFO, Ron Pasek, has notified the company that he plans to retire by the end of the fiscal year following four years serving as its finance chief. Pasek will stay with the company during the transition and NetApp plans to name a successor before the end of the fiscal year.
The company expects revenue in the fourth quarter to be in the range of $1.455 billion to $1.605 billion, with adjusted earnings per share of $1.28 to $1.36. As a result, NetApp updated its full-year fiscal 2020 outlook and now expects revenue for the year to decline by 10% versus its previous forecast of an 8% drop in sales.
