NetApp swings to 3Q loss, plans job cuts

SUNNYVALE, Calif. - Data storage provider NetApp Inc. posted a fiscal third-quarter loss Wednesday, hurt by charges and lower revenue amid the economic turmoil. The company also said it is cutting 6 percent of its global work force.

For the three months ended Jan. 23, the company posted a loss of $75.4 million, or 23 cents per share, down from a profit of $101.8 million, or 29 cents per share, in the same period a year earlier. Excluding items, the company earned 28 cents per share in the latest quarter.

Revenue dropped 16 percent to $746.3 million from $884 million. On an adjusted basis, revenue totaled $874.3 million in the latest quarter.

Analysts, on average, were expecting a profit of 28 cents per share on much higher sales of $912.5 million, according to a poll by Thomson Reuters. Analysts typically exclude one-time items from their estimates.

"Business levels softened in January as many customers' budgets contracted, resulting in lower revenues than we had expected," said Dan Warmenhoven, chairman and chief executive, in a statement.

Shares fell $1.10, or 7.2 percent, to $14.10 in after-hours electronic trading, having closed the regular session up 27 cents at $15.20.

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