Results Hurt Shares of Network Appliance

Network Appliance Inc., which makes computers that store and deliver data on computer networks, reported a net loss but better-than-expected operating results for its fiscal second quarter as sales declined.

Shares of the Sunnyvale, Calif.-based company fell 6.5% to $17 in extended trading after closing up 71 cents at $18.19 on Nasdaq. The results were released after the markets closed.

The company posted a loss of $11.2 million, or 3 cents a share, contrasted with net income of $35.4 million, or 10 cents, a year earlier. Excluding one-time items, the company had a profit of $7.7 million, or 2 cents, beating analysts’ average estimate of break even, according to Thomson Financial/First Call.

Sales for the period ended Oct. 26 fell 25% to $194.7 million. Sales fell over the last year because Internet-related customers reduced purchases as their own businesses withered.