Feeds

Brocade narrows loss, whacks workers

Valued employees affected

  • alert
  • submit to reddit

Build a business case: developing custom apps

Brocade staffers helped the company narrow its second quarter loss and were rewarded for their efforts with a round of layoffs.

Brocade today announced it would trim close to 10 percent of its workforce or 110 employees. This news came as the storage switch maker reported second quarter revenue of $146m - an 11 per cent rise over the $131m reported in last year's Q2. The revenue gain, however, was not enough to pull Brocade into the black, as it posted a net loss of $2m, which compares to a massive loss of $146m last year.

"Today Brocade announced its fifth consecutive quarter of improved financial performance, confirming our belief that growth in the network storage market is sustainable for companies that offer compelling and competitive products to their trusted OEM partners and value to the end customer," said Greg Reyes, CEO at Brocade.

Um, what about the layoffs?

"The majority of the measures we are taking are structural but, unfortunately there are some valued employees that will be affected," continued Reyes. "I feel confident that all of these actions combined, place Brocade in its best competitive position in over two years -- strategically and operationally -- and will result in a healthier and more leveraged business model with room to invest for future growth."

During the second quarter, Brocade rolled out a new line of lower-end SAN (storage area network) switches. The company also completed a deal with IBM to bundle its switch products in Big Blue's blade server chassis. ®

Related stories

Brocade burrows into IBM blades
Brocade and McDATA's Spring offensive
EMC and Brocade profess their love for standards
Brocade's cheaper entry level switches
HP to ship Brocade low-end switches
McData and Brocade puff patent peace pipe

Boost IT visibility and business value

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Cutting cancer rates: Data, models and a happy ending?
How surgery might be making cancer prognoses worse
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?