NetApp Inc. (NASDAQ:NTAP) shares climbed 3.50% to $32.89 in the opening session after the company’s fiscal first-quarter profit plunged 54%, but largely in-line results and guidance from the company helped alleviate some worries about spending by business users. However, the company forecasted a strong second quarter despite concerns over increased competition and continued slowdown in Europe, one of its key markets.
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The company reported first quarter profit of $63.8 million, or $0.17 a share, down from $139.5 million, or $0.34 a share, in the same quarter a year earlier. Adjusted per-share earnings fell to $0.42 a share from $0.55 per share. Revenue declined 0.9% to $1.44 billion. The company's May outlook called for adjusted per-share earnings of $0.34 to $0.39 a share on revenue of $1.4 billion to $1.5 billion.
Looking forward, the company expects second quarter revenue to be in the range of $1.5 billion to $1.6 billion. GAAP earnings per share to be approximately $0.23 to $0.28 per share and estimates non-GAAP earnings per share to be approximately $0.45 to $0.50 per share. Analysts were expecting the Company to report revenues of $1.5 billion and EPS of $0.46 for the second quarter of 2012.
Cisco Systems, Inc. (NASDAQ:CSCO) stock jumped 8.36% to $18.80 after the company’s fiscal fourth-quarter earnings climbed 56%, helped by falling operating expenses and despite continued declining demand from European customers and the U.S. federal government.
Additionally, the company raised its quarterly dividend 75% after cost controls and market-share gains pushed the company's earnings above its downbeat expectations.
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The company posted a fourth-quarter profit of $1.92 billion, or $0.36 a share, up from $1.23 billion, or $0.22 a share, in the same quarter a year earlier. Adjusted per-share earnings rose to $0.47 a share from $0.40 a share. Revenue increased 4.4% to $11.69 billion. The company’s projection in May called for adjusted earnings between $0.44 and $0.46 a share and revenue growth between 2% to 5% from prior-year levels.
Additionally, the company announced that the quarterly dividend quarterly dividend of $0.14 per common share, an increase of 75% declared by Cisco's Board of Directors on August 14, 2012. The dividend will be paid on October 24, 2012 to all shareholders of record as of the close of business on October 4, 2012. Cisco's previous quarterly dividend, of $0.08 per common share, was paid on July 25, 2012. Future dividends will be subject to Board approval.