SUNNYVALE, Calif. (AP) — Data storage company NetApp Inc. said Wednesday that its net income fell 34 percent in the fiscal second quarter on a number of one-time charges. Its adjusted results still beat analysts' expectations and the company's shares soared in aftermarket trading.
Net income topped Wall Street forecasts, if special items like amortization, interest, and stock-based compensation are excluded. The company also said it will buy back another $1.5 billion in stock and its forecast for the third quarter came out slightly ahead of expectations.
NetApp shares rose 3 percent to close at $27.12 in the regular session Wednesday. They jumped by $2.88, or 10.6 percent, to $30 in after-hours trading. The stock hit a three-year low of $26.26 on Tuesday.
In the three months ended Oct. 26, NetApp's net income fell to $109.6 million, or 30 cents per share, from $165.6 million, or 44 cents per share a year ago. If one-time costs are excluded the company made 51 cents per share. Revenue rose 2 percent, to $1.54 billion.
Analysts expected adjusted earnings of 48 cents per share and $1.54 billion in revenue, according to FactSet.
The company said its adjusted net income will be 53 to 58 cents per share in its fiscal third quarter, with revenue at $1.58 billion to $1.68 billion.
Analysts estimated net income of 54 cents per share and revenue of $1.61 billion on average.
NetApp also said it agreed to buy CacheIQ Inc., a storage solutions company based in Texas. It did not disclose the terms.