Feeds

Brocade raises expectations for Q4

Climbing Mount Profitability

Next gen security for virtualised datacentres

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. ®

Next gen security for virtualised datacentres

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.