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NetApp Inc. (NTAP+1.76%) has submitted its 10-Q filing for the quarterly period ended October 25, 2024.
The filing includes financial statements for the quarter, showing an increase in net revenues to $1,658 million from $1,562 million in the same quarter the previous year. This increase is attributed to higher product and services revenues.
Product revenues rose to $768 million, a 9% increase from $706 million in the prior year, driven by higher sales of C-Series all-flash array systems.
Services revenues increased by 4% to $890 million, with support revenues contributing $635 million and professional and other services contributing $87 million.
Public cloud revenues grew by 9% to $168 million, reflecting higher customer demand and growth in the cloud market.
The cost of product revenues increased by 11% to $307 million, primarily due to higher materials costs.
Cost of services revenues slightly decreased to $174 million, with public cloud costs decreasing by 15% due to cost optimization efforts.
Net income for the quarter was $299 million, up from $233 million in the previous year. Basic earnings per share were $1.47, and diluted earnings per share were $1.42.
Net cash provided by operating activities was $446 million, while cash used in investing and financing activities was $513 million and $1,390 million, respectively.
The company repurchased approximately 5.8 million shares of its common stock for $700 million and declared cash dividends of $1.04 per share during the first six months of fiscal 2025.
NetApp's restructuring plans resulted in charges of $12 million during the quarter, aimed at redirecting resources and reducing costs.
The filing also notes that NetApp's Senior Notes due September 2024 were repaid upon maturity, and no commercial paper notes were outstanding as of October 25, 2024.
NetApp's effective tax rate for the six months ended October 25, 2024, was 17.0%, reflecting an increase in discrete tax benefits related to stock compensation.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the NetApp Inc. quarterly 10-Q report dated November 25, 2024. To report an error, please email earnings@qz.com.