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, NetApp 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 $23.60 in after-hours trading.

The Silicon Valley data-storage company 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 16:55 ET (20:55 GMT)

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