As the company is entering into high-growth markets, sales from strategic solutions of $745 million witnessed a 25% growth from prior year period. It’s worth noting that strategic domain is a major contributor to the product revenues.
To tackle the competition, NetApp is undergoing a transition with its foray into flash storage and cloud market. As a result, all-flash array business sales jumped 43% compared to last year with yearly revenue run rate touching $2.4 billion.
NetApp expects the first quarter revenues to be between $1.365 billion and $1.465 billion and earnings, on an adjusted basis, in the range of $0.76 to $0.82 per share. The company has doubled its dividend payout for the quarter to $0.40 per share.
For fiscal 2019, the company forecasts its gross margins, on an adjusted basis, to be nearly 63%, down 400 basis points compared to 63.4% in 2018. So far in 2018, the share price has increased more than 21% and for the last 12 months, it has skyrocketed nearly 70%.