NetApp continued its growth course in the 1st half-year and presented convincing figures. Product sales again showed double-digit growth with an increase of 15.7% to $1.8 billion. Although NetApp’s software and services business was only slightly above the previous year’s level, NetApp increased total revenue by 9.3% to $2.99 billion. While sales costs remained stable, more money was spent on research and development. Restructuring costs amounted to $19 million. However, earnings before interest and taxes (EBIT) increased by 51.7% to $540 million.
Due to the significantly lower tax rate and higher special revenues, earnings per share climbed 78.2% to $1.96. Management is letting shareholders participate in the positive development and doubled the dividend to $0.80 per share. The outlook for the 3rd quarter also promises further growth. One reason for this is the Basic Data Protection Ordinance (DSVG).
Due to the increasing demand for cloud solutions, the complexity of data regulation is also increasing. At NetApp Insight Barcelona 2018, NetApp unveiled new data services that are compatible with leading cloud applications and specialize in the data protection theme. In addition, the Microsoft Azure NetApp application as well as the backup services for the Google and Salesforce Cloud have been redesigned.
A contribution by Volker Gelfarth.
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