NetApp Halted After Guidance Leak Causes Plunge

NetApp (NTAP) is halted after a 10% drop circuit breaker has been triggered, following a Bloomberg TV guidance update which gives a weaker outlook than expected. First switches (CSCO), now cloud computing... How much more can the tech bubble take?

And for perpetual comedic value, here is Cramer's take: "This one's for real. Stick with it."Also, "On Wednesday, NetApp (NTAP) should give important information on cloud computing. Cramer thinks the company is going to report a fabulous quarter; "people don't care enough about NetApp." Cloud computing continues on Thursday with Salesforce.com (CRM) which is being pursued by shorts. If the story is good, it is worth buying on a decline."
From the 8-K: Outlook

• NetApp estimates revenue for the third quarter of fiscal year 2011 to be in the range of $1.240 billion to $1.290 billion, which equates approximately to 3% to 7% sequential revenue growth and approximately 23% to 28% year over year revenue growth.
• NetApp estimates that third quarter fiscal year 2011 GAAP earnings per share will be approximately $0.39 to $0.41 per share. NetApp estimates that the third quarter fiscal year 2011 non-GAAP earnings per share will be approximately $0.48 to $0.50 per share.
• NetApp estimates share count for the third quarter of fiscal year 2011 will increase to approximately 408 million shares, including an estimated 16.9 million shares from the Company’s outstanding convertible notes3 and 9.9 million shares from outstanding warrants. Share count does not include the Company’s outstanding note hedges that are expected to offset 80% of the dilution from the convertible notes at maturity or conversion, which would equate to an offset of approximately 13.5 million shares if the conversion or maturity occurred in the third quarter.