Data storage company NetApp (NASDAQ:NTAP)is laying off 900 employs worldwide as part of an effort to cut costs.
The company, which employs about 1,450 in Research Triangle Park, its second largest location outside of its Sunnyvale, Calif. headquarters, disclosed the layoffs in its release of its its fiscal fourth quarter and full year 2013 financial results.
NetApp gave no geographic breakdown of the layoffs but said the company estimates it will take a $50 million and $60 million pretax charge related to severance and other restructuring charges.
NetApp reported fiscal fourth quarter net income of $174 million, under generally accepted accounting principles, or GAAP. That’s down about 3 percent compared to a year ago.
NetApp reported fiscal 2013 revenue of $6.3 billion, up about 1.5 percent compared with fiscal 2012 revenue. Under generally accepted accounting principles, the company reported fiscal 2013 net income of $505 million, or $1.37 per share compared to GAAP net income of $605 million or $1.58 per share in fiscal 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.
NetApp has faced pressure from investors to boost shareholder value. The company today announced it is boosting its stock repurchase program to $3 billion, up from $1.4 billion. This program is expected to be completed over the next three years; the first $1 billion will be completed in the next four months. NetApp also said it has started a quarterly cash dividend of 15 cents per share, which the company will increase over time. The first dividend will be payable on July 23 to shareholders of record as of July 11.
Shares in NetApp closed today at $36.63, down about 1.5 percent from Monday’s closing price.
