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NetApp to cut 900 jobs globally

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Deepa
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BANGALORE, INDIA: Storage company NetApp has undertaken a realignment of resources and restructuring which includes a global workforce reduction of approximately 900 employees. The company expects to recognize an estimated aggregate $50 - $60 million pretax charge relating to employee severance and other restructuring charges.

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This was announced during its earnings call recently. NetApp reported a revenue of $1.717 billion for the fourth quarter of fiscal year 2013.

The company is increasing its current stock repurchase program, of which $1.4 billion remains outstanding, by an additional $1.6 billion. It plans to complete the aggregate $3 billion program over the next three years. The company has initiated a quarterly cash dividend of $0.15 per share of the company's common stock, which it intends to increase over time.

GAAP net income for the fourth quarter of fiscal year 2013 was $174 million, or $0.47 per share, compared to GAAP net income of $181 million, or $0.47 per share, for the same period a year ago. Non-GAAP net income for the fourth quarter of fiscal year 2013 was $253 million, or $0.69 per share, compared to non-GAAP net income of $252 million, or $0.66 per share, for the same period a year ago.

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Total revenues for fiscal year 2013 were $6.332 billion, compared to total revenues of $6.233 billion for fiscal year 2012. GAAP net income for fiscal year 2013 was $505 million, or $1.37 per share, compared to GAAP net income of $605 million, or $1.58 per share, for fiscal year 2012.

Non-GAAP net income for fiscal year 2013 was $841 million, or $2.28 per share, compared to non-GAAP net income of $926 million, or $2.41 per share, for fiscal year 2012.

"The fourth quarter was highlighted by a continued strong uptake of clustered Data Ontap, an expansion of our leadership position in flash, and double digit growth in branded bookings," said Tom Georgens, president and CEO. "We are also pleased to announce enhancements to our capital allocation program, reflecting our confidence in our underlying business as well as our commitment to enhancing shareholder value."

NetApp expects its revenues to be in the range of $1.475 billion to $1.575 billion in the first quarter of fiscal year 2014. Its GAAP earnings per share will be approximately $0.13 to $0.18 and non-GAAP earnings per share to be approximately $0.45 to $0.50. Outstanding share count to decrease to approximately 367 million shares.

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