Data storage equipment maker Network Appliance (NASDAQ:NTAP) turned in another solid report after the market closed yesterday. In the company's fiscal second quarter, revenues jumped 28% to $275.6 million, marking the eighth consecutive quarter of growth. Excluding a one-time tax benefit, net income rose 92% to $33.6 million, or $0.09 per share. Including the benefit (a $16.8 million gain), net income more than tripled to $48.4 million, or $0.13 per share.

Last month, rival EMC (NYSE:EMC) followed its July $1.2 billion acquisition of Legato Systems by announcing a $1.7 billion deal to acquire Documentum (NASDAQ:DCTM). Not wanting to be left out of software, Network Appliance announced the $300 million acquisition of Spinnaker Networks -- a privately-held software company -- two weeks ago.

Network Appliance is in good shape, seeing sales gains across its product lines. The company has added $103 million in cash to its balance sheet since the beginning of the fiscal year, finishing the quarter with $722 million in cash and no debt. But at about 55 times this year's earnings, Network Appliance shares don't look particularly attractive.

For the third quarter, the company expects sequential revenue growth of 3% to 7%, and EPS between $0.10 and $0.11.

In all, it was a solid report, but apparently that wasn't enough. Network Appliance shares, which have more than doubled over the past year, fell $2.09 from yesterday's close to $21.34.

Talk about data storage on the Network Appliance discussion board -- only at Jeff Hwang can be reached at