NetApp revenues up, income static

Push for market share keeps storage hardware and software prices down

Hard disk arrays are shipping with more capacity

Despite increased sales revenues, storage company NetApp saw flat income for both the fourth quarter and full fiscal year 2008, largely due to lower profit margins from sales of backup and archiving systems over the 12-month period.

Adjusted net income for the fourth quarter was $90m (£45m), identical to earnings in the fourth quarter of 2007, though revenues rose 17 per cent to $801m year on year, and six per cent compared with the third quarter of 2008.

Adjusted net income for the year was up slightly from $298m to $310m compared with 2007, despite revenues surging 18 per cent from $2.8bn to $3.3bn.

NetApp chief executive Dan Warmenhoven said the average selling price of NetApp's hard disk storage arrays had remained the same, but they were shipping with more high capacity disks.

NetApp rival EMC saw its net income fall by 14 per cent to $269m in the financial quarter ending 31 March 2008, with acquisition and integration costs of the company's recent buys taking their toll. Revenue grew 17 per cent to $3.5bn year-on-year.