McData makes profit, lowers revenue guidance
Needs EMC to do better
The Register's Enterprise Storage Channel
SAN switch maker McData Corp has posted quarterly results showing a better than expected income, but has lowered its revenue guidance for the fourth quarter.
For its third quarter ended September 30 2002, the company reported net income of $2.3m or 2 cents per share, beating analyst expectations of a one cent loss. For the same period last year, the company saw a net loss of $13.6m. In a guidance revision issued towards the beginning of the month McData had said it expected income to be breakeven to a penny loss
Revenue in the latest quarter was $80.9m, up 6.5% on the same period last year, and up 4.8% sequentially. For the fourth quarter the company said it expected sequential revenue growth of only 4% to 6%. In the summer the company predicted sequential revenue growth of 11% to 15% - a forecast which it had been sticking to even after the revision to the third quarter earlier this month.
McData's largest OEM customer is EMC Corp, which posted disappointing results last week. During the the third quarter EMC accounted for 56% of McData's revenue, up from 50% in the second quarter.
In the last few weeks the company has launched two new products The first was a giant 140-port director replacing the company's previously largest device, a 64-port director. The other device was an 8 to 24-port switch, which renewed McData's efforts to penetrate the low and mid-range SAN switching market.