NetApp restructures after $75m loss
NetApp a turned in $75m loss in the third quarter after corporates went on a buying strike and the firm took a $128m hit from a dispute with a US government agency
Revenues for its fiscal 2009 third quarter (Q3 fy09), which ended on January 23, were $746m, down 16 per cent year on year. Excluding the GSA dispute accrual the decline was one per cent year-on-year.
The net loss is the reason for the five per cent head count cuts revealed on Monday. CEO Dan Warmenhoven said: "Business levels softened in January as many customers’ budgets contracted, resulting in lower revenues than we had expected."
The company decreased operating expenses by $30m in the quarter as well as announcing a restructuring.
This involves substantial decreases in the number of contractors used, a reduction in outside services purchased, and rearrangements of its estate lease portfolio, as well as the elimination of around 540 permanent employee jobs.
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