NETWORK APPLIANCE CONTINUES HIGH GROWTH RATES.
Network Appliance Inc is continuing its impressively high growth
rates, with second quarter revenues up 71% from the same period last
year to $65.6m. Income was also up 71% from last year to $8.4m. At the
start of the quarter, the Santa Clara, California- based company
introduced its new F700 Filer NFS and CIFS network server product
family, and says that it quickly built it up to account for over 50% of
new business during the quarter. NetApp now has three market for its
appliances: the database market, supporting Oracle Corp and, more
recently, Sybase Inc; the Windows only market, bolstered after the
quarter closed by two lucrative OEM agreements from Dell Computer Inc
and Fujitu Ltd; and the web cacheing market, driven particularly by the
European internet service providers, who are battling against high
charges for bandwidth. "We still have strong growth
opportunities," said NetApp CEO Dan Warmenhoven, "we are
neither product or market constrained." In the US, he said, the web
caching business is being driven by the adoption of fast networking
technologies such as DSL or cable modems. The Windows-only market is set
to take off in NetApp's next fiscal year, by which time both Dell
and Fujitu will be ready to ship their own re-badged NetApp servers.
NetApp says 60% of its business was fibre-channel-based.