The CEO of NetApp says the trade war won’t end this year and the tech company is preparing for ‘a variety of difficult outcomes’ (NTAP)


NetApp CEO Geroge Kurian

The CEO of NetApp, George Kurian, said the company is preparing for “a variety of difficult outcomes” amid growing market uncertainty, caused in part by the US-China trade tensions.
He said the company is seeing more caution in enterprise IT spending and he does not expect the trade dispute to be resolved within the year.
But NetApp posted better-than-expected results that pushed its stock higher.
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NetApp CEO George Kurian had reason to be upbeat on Wednesday when his company reported quarterly results that cheered Wall Street, sparking a late rally in the tech company’s shares.

But while the report beat expectations, and Kurian could point to signs that the data storage company was adapting to a changing enterprise market, he also warned of a hazy road ahead.

Major enterprises had grown more cautious on IT spending amid growing economic uncertainty, which has been aggravated by the US-China trade war.

“We have taken a variety of difficult scenarios into account,” Kurian told Business Insider in an interview. “I don’t want to predict the worst case outcomes, but we have taken a variety of difficult outcomes into account.”

A key concern is still the raging trade dispute between the US and China, which escalated recently when the Trump Administration said it would impose a new round of tariffs on Chinese goods.

“Customers, especially large global enterprises, continue to be a bit cautious about making large capital investments, given the uncertainty about the trade and global economic outlook,” he said. “The sooner there’s clarity on what would be the potential resolution of the trade regime, as well as clarity in terms of the economic outlook, people can make spending decisions and move forward.”

For the current quarter, NetApp said it expects adjusted income of 91 cents to 99 cents a share, on revenue …read more

Source:: Business Insider

      

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