Research Desk Line-up: Brocade Communications Systems Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on NetApp, Inc. (NASDAQ: NTAP), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NTAP, following the Company's announcement of its first quarter fiscal 2018 financial results on August 16, 2017. The data storage Company beat revenue and earnings estimates and also provided guidance for the upcoming quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Data Storage Devices industry. Pro-TD has currently selected Brocade Communications Systems, Inc. (NASDAQ: BRCD) for due-diligence and potential coverage as the Company reported on August 24, 2017, its financial results for Q3 FY17 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Brocade Communications Systems when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NTAP; also brushing on BRCD. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=NTAP

http://protraderdaily.com/optin/?symbol=BRCD

Earnings Reviewed

For the first quarter of the fiscal year 2018, NetApp recorded net revenues of $1.33 billion, up 3% compared to net revenues of $1.29 billion for Q1 FY17. The Company's revenue numbers topped analysts' forecasts of $1.31 billion.

During Q1 FY18, NetApp's product revenue of $723 million increased 10% on a y-o-y basis. This was the third consecutive quarter of y-o-y product revenue growth, driven by the Company's successful pivot to the growth areas of the market. The combination of software maintenance and hardware maintenance and other services revenues of $602 million declined 5% on a y-o-y basis. The Company's all-flash array annualized net revenue run rate grew 95% on a y-o-y basis.

For Q1 FY18, NetApp's gross margin of 63.8% was well above the Company's guidance range. NetApp's product gross margin of 49.9% increased approximately 3 basis points on a y-o-y basis due to improved sales discipline. The Company's software maintenance gross margin was relatively flat on y-o-y, while hardware maintenance and other services gross margin increased about 2 basis points compared to the year ago same period.

During Q1 FY18, NetApp's operating expenses of $637 million decreased 2% on a y-o-y basis. As a percentage of net revenue, operating expenses of 48% represented almost 2.5 basis points of improvement on a y-o-y basis. The Company's operating margin of 15.8% increased almost 4 points basis on a y-o-y basis and was above its guidance range, due to higher revenue, higher gross margin, and lower operating expenses.

For Q1 FY18, NetApp's GAAP net income was $136 million, or $0.49 per share, compared to GAAP net income of $64 million, or $0.23 per share, for Q1 FY17. The Company's non-GAAP net income totaled $173 million, or $0.62 per share, for the reported quarter compared to non-GAAP net income of $129 million, or $0.46 per share, for the comparable period of the prior year. NetApp's earnings beat Wall Street's estimates of $0.55 per share.

Cash, Cash Equivalents, and Investments

NetApp ended the first quarter of the fiscal year 2018 with $5.3 billion in total cash, cash equivalents, and investments. During the reported quarter, the Company generated $250 million in cash from operations and returned $204 million to shareholders through share repurchases and a cash dividend.

NetApp announced the next cash dividend of $0.20 per share. The quarterly dividend will be paid on October 25, 2017, to shareholders of record as of the close of business on October 06, 2017.

Outlook

For Q2 FY18, NetApp is forecasting net revenues to be in the range of $1.31 billion to $1.46 billion. The Company's GAAP and non-GAAP earnings per share are expected to be in the band of $0.47 - $0.55 and $0.64 - $0.72 respectively.

Stock Performance

On Tuesday, September 05, 2017, the stock closed the trading session at $37.98, dropping 1.73% from its previous closing price of $38.65. A total volume of 2.32 million shares have exchanged hands. NetApp's stock price surged 8.83% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 7.68%. The stock is trading at a PE ratio of 18.29 and has a dividend yield of 2.11%. At Tuesday's closing price, the stock's net capitalization stands at $10.13 billion.

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SOURCE: Pro-Trader Daily