NetApp Inc (NASDAQ:NTAP) stock dropped 11% in Thursday’s premarket dealing after quarterly results released on Wednesday disappointed.
The data management group reported a US$506mln loss in the third quarter ended January 26, and it generated US$1.52bn of revenue which represents an 8% increase year-on-year and was above market expectations of US$1.50.
READ: NetApp shares tumble in New York despite earnings beat
NetApp revealed a US$856mln one-time charge related to US tax changes.
George Kurian, NetApp chief executive, said: “NetApp again delivered strong results in the third quarter with accelerating revenue and strong cash generation.
“It is rewarding to see the results of our improved execution as we transform NetApp to deliver sustained and profitable growth.”
“We saw a solid demand environment and customer momentum, landing wins and footprint expansions with leading organizations in all geographies. With our Data Fabric Strategy and industry-leading solutions, we are winning new customers and expanding our business opportunity.”
On Wall Street, NetApp shed US$6.71 or 11% to change hands at US$53.93.