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Network Appliance Profits Down, Lays off Workers

Network Appliance, Inc. this week announced results for the first quarter of fiscal year 2002. Revenues for the first fiscal quarter were $200.4 million, compared to revenues of $231.2 million for the same period a year ago.

According to the company, Pro forma net income for the quarter was $4.7 million, or $0.01 per share, compared with $32.6 million, or $0.09 per share for the same period a year ago. For the first quarter, on an as-reported basis with adjustments for acquisitions and stock-based compensation, the net loss for the quarter was $0.5 million, or break-even per share, compared with $5.0 million, or $0.01 per share for the same period in the prior year.

Network Appliance also announced a workforce reduction affecting approximately 200 employees worldwide. The company says the action is required to properly align and manage the business commensurate with current revenue levels of the company. The company anticipates it will take a restructuring charge in the range of $6 million to $8 million during the second quarter.