Feeds

Brocade raises expectations for Q4

Climbing Mount Profitability

HP ProLiant Gen8: Integrated lifecycle automation

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. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.