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Investing.com -- Shares in NetApp Inc (NASDAQ:NTAP) surged more than 7% in after-hours trading after the multinational storage and data management company swung to a gain in its first quarter of Fiscal Year 2017.
Over the three-month period that ended on July 29, NetApp reported net revenues of $1.29 billion, down slightly from $1.34 billion in the first quarter of 2016. It came as the Sunnyvale, California based company said it deployed its Clustered Data ONTAP technology on 32% of its installed base system. For the quarter, the company's deferred revenue and financed unearned services revenue rose by 8% on an annual basis.
Concurrently, NetApp reported a net profit of $64 million or 0.23 per share for the quarter, up considerably from a loss of $30 million or 0.10 per share from the same period a year earlier. On adjusted earnings per share basis, excluding one-time items, NetApp shares rose sharply to 0.46, up from 0.29 a year earlier.
Analysts expected to see earnings per share of 0.36 on revenues of $1.26 billion.
"We are pleased with our first quarter results. Our focus on disciplined execution of our strategy is yielding results and starting to change the trajectory of our business," said George Kurian, chief executive officer. "We remain sharply focused on operating more efficiently while delivering market-leading innovations that are aligned to our customers' business and IT transformation priorities."
In addition, NetApp generated $228 million in cash from operations over the quarter, returning all of the proceeds to shareholders through share repurchases and a cash dividend. NetApp's Board of Directors authorized a cash divided of 0.19 per share on October 26, payable to shareholders of records at the close of business on October 7.
NetApp shares soared 2.06 or 7.14% to 30.91.