Feeds

Brocade raises expectations for Q4

Climbing Mount Profitability

Beginner's guide to SSL certificates

Execs at storage switch maker Brocade took a break from dealing with the company's high-profile stock option woes by reporting some decent Q3 results.

Revenues reached a record $188.9m, up 55 per cent on the same period a year ago. Brocade had previously told Wall Street it expected to beat its previous revenue expectation of between $174m and $183m.

GAAP profit was $24.5m, or $0.09 per share. The firm made a loss of $7.2m in Q3 2005.

CEO Michael Klayko said: "Our results this quarter were outstanding and represent the third consecutive quarter of record revenues and the fourth consecutive quarter of increased profitability."

High end enterprise director switches were in particularly strong demand, enjoying a 72 per cent sales spike.

The business highlight for the quarter was the $713m acquisition of McData, though that won't appear in the accounts until the deal is sealed Q1 2007.

Klayko said: "McDATA's strong presence in the mainframe connectivity, professional services and long distance solutions will substantially augment and diversify our current business."

He defended the company against claims it had paid over the odds for its rival in a desperate bid to fend off Cisco's challenge, saying: "We believe that this acquisition will provide a wide range of compelling benefits for our customers, partners and shareholders, and that the value of bringing the two companies together is significantly greater than the roughly one times annual revenue that we paid for McDATA."

The company's finance chief told investors the outlook will continue to grow brighter. Richard Deranleau said revenues for Q4 should be between $200m and $205m, beating analyst estimates, which have been around $191m.

In post-Wall Street trading yesterday evening, Brocade's stock rose five and a half per cent to $5.71. ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
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.