Original URL: http://www.theregister.co.uk/2005/12/06/brocade_q4/
Brocade ends 2005 with a wheeze
Next year more promising
Posted in Storage, 6th December 2005 23:17 GMT
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Brocade today delivered moderately disappointing fourth quarter results, which stand as an improvement over painful revenue totals turned in last quarter.
The storage switch maker reported revenue of $146m. That total marks a six per cent decline from the $156m reported in the same period last year. For the full year, Brocade pulled in $574m - a four per cent drop from 2004's $596m.
The slight fall in fourth quarter revenue served as a welcome change from Brocade's third quarter. Investors dumped Brocade shares in August after it revealed a-close-to $20m revenue miss [1]. The company is also in the midst of an SEC investigation as to how it handles stock options, which doesn't help matters.
"Our GAAP revenue and reported sell-through were better than we planned and I'm very pleased with our overall performance this quarter," said Michael Klayko, Brocade's CEO. "Strong demand, solid gross margins and some one-time expense savings led to increased profitability and helped generate $39 million in cash from operations."
Brocade reported fourth quarter net income of $1.1m, down from $20m in last year's fourth quarter.
Net income for the full year was $43m, which is a solid improvement over a $34m loss in 2004.
The company expects a healthy rise in revenue during 2006 to between $660m and $672m. ®