NetApp (NTAP -1.7%) is lower after beating FQ3 estimates and issuing in-line FQ4 revenue...

|By:, SA News Editor

NetApp (NTAP -1.7%) is lower after beating FQ3 estimates and issuing in-line FQ4 revenue guidance. FQ3 product gross margin fell 50 bps Q/Q to 53.1% (services margin rose), OEM revenue (much of it involves IBM) fell 17% Y/Y, and management noted it's seeing a mix shift towards "low-end platforms." However, shipments of high-end clustered systems rose 70% Q/Q, and bookings for systems with flash memory rose 67%. Piper thinks share losses to EMC are narrowing - on the call, a Credit Suisse analyst seemed worried about market share trends. (transcript)