Feeds

McData makes profit, lowers revenue guidance

Needs EMC to do better

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

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.

© ComputerWire

Related stories
McData Q3 update is curate's egg
McData maxes out on director size

Reducing security risks from open source software

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.