News

posted on 05 March 2008 09:22

It's reported in a Raleigh, N Carolina newspaper that NetApp has reduced its forecast sales revenue but is still recruiting people.

The reason for the revenue reduction is the general US economic climate, now teetering on recession, and a slow-down in IT spending by banks, no doubt as a result of the sub-prime crisis as well as general economic uncertainity.

However, NetApp views this as a relatively short-term thing and is set of adding 200 or more people to its 800-strong headcount in its Research Triangle Park (RTP) global customer support centre facility. NetApp has a 5-year plan which involves building four new offices on land purchased in July for $12.5 million, which is near to the current ones. That could mean an additional 3,500 workers will be needed.

There are three NetApp facilities currently in RTP with a fourth one under construction.

NetApp's growth rate is currently slowing from about 30 percent a quarter and may decline below 20 percent a quarter; the latest Q4 forecast is 18 percent growth from the year-ago Q4, but that is still strong and reflects enterprises' needs to store more and more information and to do so more efficiently. If the economic climate worsens then NetApp's plans could be revised.