Feeds

Brocade makes income and CEO disappear

Bad day

  • alert
  • submit to reddit

Remote control for virtualized desktops

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
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.
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?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.