NetApp trimmed its financial outlook for its first quarter of fiscal year 2020 ended July 26, 2019. Revenues are now expected to be between $1.220 and $1.230 billion, which is a decline of approximately 17% from the first quarter of fiscal year 2019.
Net revenues in the first quarter of fiscal year 2019 included $90 million from enterprise software license agreements (ELAs) which did not repeat in the first quarter of fiscal year 2020. Adjusting for ELAs, preliminary first quarter of fiscal year 2020 net revenues would have been down approximately 12% year-over-year. GAAP net income per share1 is expected to be in the range of $0.30 to $0.35 and non-GAAP net income per share2 is expected to be in the range of $0.55 to $0.60, each computed based on an expected diluted 243 million shares.
“While we are disappointed that our preliminary results for the first quarter are lower than we had previously anticipated, we remain confident in our long-term strategy and the health of our business model,” said George Kurian, chief executive officer. “Our customer conversations indicate that our hybrid multicloud portfolio of solutions is the right one. We believe we can return to growth over time by prudently reallocating investments to expand sales coverage and accelerate our participation in the growing Private Cloud and Cloud Data Services markets.”
