Feeds

Brocade to fix two years of earnings after audit

Stock snafu

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

Brocade is to restate two years worth of financial statements after discovering that it improperly accounted for stock-based employee compensation.

The storage networking firm today said that an internal audit turned up two specific ways in which it miscalculated the stock compensation. In one case, it granted stock to new hires on their acceptance date instead of the day they actually started work. In another, it granted part-time workers similar stock deals prior to their being hired as full-time workers. Brocade doesn't expect to report material changes to revenue for the periods in question, which are its 2002 and 2003 fiscal years.

"Our core business remains strong and the restatement does not affect the underlying fundamentals of our business," said Brocade's CEO Greg Reyes.

Shares of Brocade were down more than six per cent to $6.47, at the time of this report.

Brocade, which makes switches for storage networks, will delay the filing of a financial statement with the US Securities and Exchange Commission, as it sorts out this matter. It, however, expects to report its first quarter of 2005 earnings on time on Jan. 29. ®

Related stories

Apple ships Xsan 64-bit cluster file system
IBM taps Emulex for cheap Fibre Channel
Rumours of Tape's death exaggerated

Secure remote control for conventional and virtual desktops

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
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
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.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.