The company's shares rose as much as 3% after the bell.
Increased sales of products sold under the NetApp brand assuaged some investors' concerns that the company was losing business to newer and cheaper flash-based storage technology vendors such as
"What's different [this quarter] overall is we got some rebound in enterprise spending in our larger US-based accounts," CEO
"Branded revenue is going to continue improving on a year-over-year trajectory and I think a lot of investors were doubtful to whether or not that would happen,"
Analysts were expecting second-quarter adjusted profit of
In the first quarter, adjusted profit rose 13% to
Revenue fell about 2% to
Adjusted gross margin rose to 64.3% from 61.3% a year earlier.
"Their service gross margin came in quite a bit better than they had guided for," Piper Jaffray analyst
The company's shares were marginally up at
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