NTAP NetApp Inc

   By Maria Armental 
 

NetApp Inc. swung to a fourth-quarter loss driven by a 10% revenue decline and $80 million in costs tied to the latest round of layoffs.

For the current quarter, the Silicon Valley data-storage company expects to make 34 cents to 39 cents a share in adjusted profit on $1.20 billion to $1.35 billion in revenue, compared with analysts' projections for earnings of 45 cents a share on $1.26 billion in revenue, according to Thomson Reuters.

The company, which previously defended its dividend payout, on Wednesday said its board had approved raising the quarterly dividend to 19 cents a share, a 6% increase. The first payout will be made on July 27 to shareholders of record July 18.

The company's stock, down 23% over the past 12 months, fell 8% to $23.44 in after-hours trading.

In addition, NetApp said it added the president title to Chief Executive George Kurian, who became CEO last year. The company also expanded its board to 10 members to reflect the addition of Stephen M. Smith, a former Hewlett-Packard Co. executive who is now CEO and president of Equinix Inc.

NetApp said in February that it would lay off 12% of its work force by the end of the current quarter, part of a roughly $400 million cost-cutting move, the fourth restructuring in as many years.

Over all, NetApp reported a loss of $8 million, or 3 cents a share, compared with a profit of $135 million, or 43 cents a share, a year earlier. Excluding stock-based compensation and other items, profit fell to 55 cents a share from 65 cents a share a year earlier.

The most recent results are based on 9% fewer outstanding shares.

Net revenue declined to $1.38 billion from $1.54 billion a year earlier as product revenue decreased 17%.

NetApp had projected 55 cents to 60 cents in adjusted profit on $1.35 billion to $1.50 billion in revenue.

Gross profit margin narrowed to 59.3% from 60.7% a year earlier.

The Sunnyvale, Calif., company ended the quarter with $5.3 billion in cash and $1.49 billion in long-term debt.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

May 25, 2016 17:14 ET (21:14 GMT)

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