Network Appliance Comes On StrongNetwork Appliance Comes On Strong

Network Appliance Inc. reported strong third-quarter earnings, in part because of market acceptance of its new backup and recovery technology.

For its fiscal third quarter, ended Jan. 24, Network Appliance had revenue of $228.5 million, 15% more than the $198.3 million in revenue it had in its third quarter last year. The vendor improved net income by almost 200%, showing $19.2 million, or 6 cents a share, in the most recent quarter, compared with $7 million, or 2 cents a share, for its fiscal third quarter a year ago.

Network Appliance attributed the positive growth to new-named accounts; stronger partnerships, including one with Hitachi Data Systems; and strong market reception of new products such as its NearStore line of storage devices designed specifically for backup and recovery. Dan Warmenhoven, CEO of Network Appliance, said in a statement that simplicity, innovation, and lower total cost of ownership continue to drive his company.

Yankee Group analyst Jamie Gruener thinks such positive numbers could signal a break in the technology market slide. "In the case of Network Appliance, growth is continuing thanks to consolidation of backup and recovery on the NearStore product," he says. And it supports storage networks from major vendors such as Hewlett Packard and Sun Microsystems.