Mon, Jun 10, 8:28 PM (89 days ago)
NetApp, Inc.'s Form 10-K for the fiscal year ended April 26, 2024, reports a slight decrease in net revenues to $6.268 billion, down 1% from the previous year. This decline is primarily attributed to a 7% drop in product revenues, partially offset by a 3% increase in services revenues. Despite this, the company's gross margin improved to 71%, up from 66% in the prior year, driven by lower component and freight costs in product revenues. Operating income rose to $1.214 billion, representing 19% of net revenues, an increase from 16% the previous year. However, net income dropped to $986 million from $1.274 billion, largely due to a significant tax benefit in the prior year. Earnings per share (EPS) decreased to $4.63 from $5.79. NetApp's cash flow from operations increased to $1.685 billion, up from $1.107 billion, reflecting strong operational performance. The company repurchased $900 million worth of shares and paid $416 million in dividends. Deferred revenue and financed unearned services revenue stood at $4.234 billion. Looking ahead, NetApp faces potential risks from economic uncertainties, supply chain challenges, and evolving customer demands, particularly in cloud services. The company remains focused on innovation in data infrastructure and cloud operations to drive future growth.