BOSTON (Reuters) - Data storage equipment maker NetApp Inc (NTAP.O) posted quarterly revenue below Wall Street projections, saying that business slowed dramatically in July, and its shares tumbled 14 percent.
It also announced that Chief Financial Officer Steve Gomo, 59, will retire after nine years with the company.
Chief Executive Tom Georgens said in an interview that sales to the U.S. federal government, NetApp’s biggest customer, slowed dramatically in July during the deficit impasse. He said he was not sure if the company would be able to recoup that lost business.
“It’s a little bit unknown as to how this thing is going to play out,” he said.
Sales to U.S. financial services firms also dropped off last month, he said.
The company reported profit, excluding items, of 55 cents per share in its fiscal first quarter ended July 29. That matched the average forecast of analysts polled by Thomson Reuters I/B/E/S.
First-quarter revenue rose to $1.46 billion from $1.15 billion a year earlier, missing the average forecast of $1.51 billion.
The company also projected that revenue will miss Street projections in its current quarter. It forecast revenue of $1.5 billion to $1.6 billion, below the average forecast of $1.61 billion.
NetApp shares fell 14 percent to $35.71 in extended trading after closing at $41.66 on Nasdaq.
Reporting by Jim Finkle, editing by Bernard Orr