Revenues down almost 10 percent. If not for stock buybacks the EPS would have been negative too. Rumour is that satellite locations, Boulder and Wichita as well as ancillary products like StorageGrid will go over board next.
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Reading the transcripts......Q1 the company repurchased 3.9 million shares, Q2 the company repurchased 9.8 million shares of stock. WOW. To those that commented on the inflated EPS, there is your answer. Product revenue DOWN 16% Y/Y in Q2. Numbers don't lie. You can come to your own conclusions. No amount of enthusiasm from Kurian can overcome where this business is headed. I'm not waiting for my package.
HCI was poorly executed and still doesn't have a legitimate sales force to go push it. Partners dont see it as HCI, neither do analysts, or customers. Bad marketing, bad messaging, and no investement in the people needed to properly sell into a non-storage space. Face it, NetApp is built around one thing and one thing only and thats selling OnTap products. Henri will retire soon, marketing is getting a new CMO, I'd suspect additional changes and re-orgs for Boulder and other underperforming businesses. Cloud Data Services has a future, but theres no one who knows how to sell it. Company needs to focus on what it does well and do that and quit pretending to be a full stack provider (NKS is a non-starter). Also, the amount of money that was offered to buy Rubrik was laughable. The entire sales org needs an enema, starting with cleaning house of the SE org that is full of long term NetApp employees who simply have no comprehension of where the market is going. When the stock gets below 40 someone will buy the company.
I worked at NetApp when we had a goal of being a 15 billion dollar company in 5 years. That obviously never happened. I sat in a meeting where Henri "the soon departed crazy clown" asked the question "would you rather be a 10000 person company that owns 50 percent of the market or a 5000 person company which owns 80 percent of the market?" The first goal is now impossible. In fact we are generating less and less revenue ever year. We had almost 6 billion dollars in the bank at one point and now have 3. That money has been spent on stock buybacks not innovation. It's clear that management is moving towards a much smaller company with a much higher market share. This results in great wealth for the executives because of their stock grants alone. For the employees it means the death of a thousand cuts.
To summarize... and keep in mind that this site is focused on layoffs and their impact on the employees.
- NetApps revenues are on a downward slope.
- Available cash has been cut in half and spent on buybacks to gin up EPS and please Wall Street.
- Kurian sold his soul to Wall Street and they will bleed the company dry.
- More money is being spent on packages and buybacks than on innovation. This will empty the piggy bank eventually and when that happens the company like SUN and Compaq before it will cease to exist.
As an employee you are fooling yourself if you think your job is safe.
Looks like someone’s back is burning😡
The guy in the last reply clearly doesn’t work at NetApp based on the Henri comment.
Just another laughable quarter. Only positive results were from EPS which is manufactured by the incompetent CFO massive stock buy back. Let me get this straight the company is investing in all
Of these leading products such as HCI, Keystone and others and the revenues are down
10%? What a great business model. Spend a fortune on R&D to get lower revenues! Oh and clearly Henri has pictures on Curious George since he still hasn’t been fired but is tanking the company. We are doomed. Get out now. I will!
Yeah you're right, hearing Joe Bob talk hallway chatter means it's going away. Must be true. That fabric pool + StorageGrid initiative is dumb anyway.
StorageGrid was not even mentioned in the earnings announcements. It's a very small percentage of total revenue. It's at the bottom of the list compared to HCI, Cloud and FAS. If you think funds will be diverted to a product that's less than 1 percent of revenue you're out of your mind.
StorageGrid just went on a hiring spree. And they sell more and more QoQ, YoY. Not sure about that.
I heard about Storage Grid as well as the lower end of the product portfolio going over to Lenovo.