Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: NetApp (Nasdaq: NTAP) dropped 14% in intraday trading today after issuing a disappointing earnings report and outlook and announcing its CFO will retire at year's end.

So what: Non-GAAP EPS of $0.55 rose 12% year over year and met the consensus estimate. GAAP EPS of $0.34 fell from $0.40 in the year-ago quarter. Revenue of $1.46 billion grew 26% year over year, but came in below the consensus forecast of $1.51 billion. NetApp had beaten the consensus non-GAAP EPS estimate for the previous nine quarters, so just meeting expectations is a disappointment.

Now what: Even worse, business "softened dramatically" toward the end of July. The year-over-year growth rate for July was half May's pace, because of weak sales to the U.S. federal sector. Bookings with large financial institutions also dropped in July. For the current quarter, management said it expects revenue of $1.5 billion to $1.6 billion, below the consensus forecast of $1.61 billion, and non-GAAP diluted EPS of $0.58 to $0.62, compared to the consensus estimate of $0.61. Questions on the conference call centered on fears that this may signal the beginning of another broad economic slowdown.

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