NetApp sticks to pessimistic view of economy
LONDON (Reuters) - Data storage company NetApp Inc said the economic view in Europe was increasingly uncertain, justifying the pessimistic outlook it gave at the time of its last quarterly results.
Chief Executive Tom Georgens said Europe, a major market for the U.S. company, was stronger than expected for most of the year but worries about the debt situation in the south of the continent were starting to spread to Germany, Britain and France.
"Clearly we are concerned about the trajectory of where we are heading," he said at the Reuters Media and Tech summit.
"Not only the trajectory is a concern but there is a wide range of potential outcomes."
NetApp last month forecast revenue below Wall Street's expectations and warned of uncertainty in Europe, sending the data storage equipment maker's shares down 18 percent.
"Between that earnings call and today there hasn't been any better macroeconomic news whether in the U.S. or Europe," Georgens said in London on Tuesday.
"I think the quarter itself was good, and if you think we were too cautious that's fine, maybe we'll do better than you think."
The major European markets of Germany and Britain had been relatively strong up to now, Georgens said, but he was starting to see concerns about a slowdown in those countries as well.
"That's why it is different now than six months ago, or a year ago." Continued...