NetApp array shortages predicted to continue

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NetApp array shortages predicted to continue

Microscope contributor

Components shortages will continue to disrupt supply of NetApp's revamped lines of storage arrays for at least the rest of this quarter, according to CEO Thomas Georgens.

High demand for the FAS3200 caught NetApp unawares in fiscal Q3 as it failed to fulfil millions of dollars worth of orders, however sales for the period ended 28 January climbed 25% to $1.27bn (£782m) with profits up 46.5% to $211m (£130m).

The line up was launched in November and NetApp boss Georgens said: "Customers converted over to the new FAS3200 platform at a far faster rate than we had projected". 

"As a result we are experiencing some material constraints which we believe delayed the shipment of $10m to $15m of revenues...despite this operational challenge, product revenues growth was still above 30%," he added.
 
Demand outstripped supply four fold on the back of shortages of I/O expansion modules - which allow for more connectivity - and constraint was felt most severely in the mid-range.

"As we go into next quarter, our guidance currently reflects the fact that we've not resolved these problems yet," said Georgens, adding: "My hope and my expectation is that we'll get this cleared up this quarter.

"We're certainly taking a fair amount of material risks or at least near-term inventory risks... I can't tell you with full confidence that we're going to clear this up but I can tell you with full confidence that we're working on it night and day."

The Q3 financials showed a 32% rise in product sales to $818.6m, software and maintenance revenues went up $183.8m and services grew 19.6% to $265.7m.


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