First, let’s look at Yahoo which is currently experiencing some difficulties….
Yahoo is laying off 1500 employees and they are a big user of NetApp.
“Yahoo is bracing for a deep downturn likely to extend well into 2009 by trimming $400 million from its annual expenses of $3.9 billion. Besides shedding 1,500 workers during the next two months, Yahoo may close some of its U.S. offices and assign more jobs to lower-paid contractors in other countries. “We are going into what is very clearly a recession mode,” Blake Jorgensen, Yahoo’s chief financial officer, said in a Tuesday interview. “
NetApp has been very proud of its long relationship with Yahoo
Would a reduction in NetApp’s service and support costs have helped Yahoo reduce its operating costs and saved some employees their jobs?
Goldman Sachs Group (nyse: GS – news – people ) will cut 3,260 of its 32,569 employees worldwide, according to a Reuters report released Thursday.
“Now, he says sales to finance have fallen even more, to a run rate below 10% of NetApp’s sales. He even notes that Lehman owes NetApp money (“We’ll see if Barclays makes good or not,” says Warmenhoven.)”
Things can change quickly in the marketplace. I wonder if NetApp’s CFO knew of any difficulties when he was a featured presenter at this Lehman conference less than a year ago?
Sunnyvale, Calif. – December 5, 2007 — Network Appliance, Inc. (NASDAQ: NTAP), a leader in advanced networked storage solutions, today announced that Steve Gomo, Executive Vice President, Finance and Chief Financial Officer, will present at the Lehman Brothers Global Technology Conference in San Francisco, CA on Friday, December 7, 2007, at 8:30 a.m. Pacific Standard Time.
Perhaps the NetApp CFO should have tried to collect on their outstanding debt which Mr. Warmenhoven mentioned above prior to speaking at the event? Shouldn’t the NetApp CFO have been watching Lehman’s deteriorating credit situation, and shouldn’t he have mentioned it to the folks at Lehman who invited him to speak? Now NetApp may have a questionable receivable on its books. Coincidentally, Lehman helped bring NetApp public .
Our business has been strong these last few months and there seems to be a correlation between the state of the economy and the growth of our independent NetApp service and support business within larger companies . As our growing family of customers knows, Zerowait provides high availability NetApp support at an affordable cost.