Feeds

Brocade makes income and CEO disappear

Bad day

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Brocade hit customers and investors with a grand twofer on Tuesday, saying it will have to cut previously reported net income and that it has changed CEOs.

Earlier this month, Brocade announced that an internal audit had revealed some accounting mistakes with regard to stock-based employee compensation. As a result, Brocade expects to report that 2002 net income will rise to $126m from the previously reported $60m. Net income, however, for 2003 and 2004 will fall. Brocade will report a loss of $147m in 2003 instead of the previous loss of $136m and a loss of $32m in 2004 instead of a $2m loss. The storage switch maker's revenue for these periods will not change.

Brocade has yet to file an official statement for the end of 2004 with the US Securities and Exchange Commission but provided these forecasts based on its audit.

In addition to this mess, Brocade tapped Michael Klayko as its new CEO. Klayko will replace Greg Reyes, who was also stripped of his position as Chairman and will become an advisor to the company. Dave House will take on the role of Chairman.

Klayko served as Brocade's vice president of worldwide sales and was once CEO of Rhapsody Networks - a company acquired by Brocade in 2003. ®

Related stories

McDATA gobbles up CNT
Brocade to fix two years of earnings after audit
EMC squares up for on-target year
Dell flies the flag for Fibre Channel

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.