Feeds

Brocade makes hay before McData integration

Bitter pill to swallow?

Secure remote control for conventional and virtual desktops

Storage switch specialist Brocade posted a strong set of quarterly results as it prepares to near-double its market share by integrating recently completed acquisition McData.

For the three months to January 27, Brocade revenues were $224.2m, up 32 per cent on the same period a year earlier. Margins widened too, with the record sales netting a GAAP profit of $33.3m, or $0.12 per share, walloping Q1 2006's $9.7m, or $0.04 per share, by 245 per cent.

Brocade's customer profile hasn't changed; it was dependent on its three big OEM partners HP, IBM and EMC for 72 per cent of the revenues. This inevitably leaves it vulnerable to the winds of changes in the broader market, but for know - as we saw with HP's most recent quarter - things are pretty rosy for the storage switch supplier.

Cisco's burgeoning switch business is looking strong too though. As the only two remaining big players in the market, there should be more clues as to how the tussle between the two will shake down when Brocade digests its swallow of third wheel rival McData next quarter. McData's flagging numbers, which were missing their targets in its final days as a standalone entity, might take the shine off for Brocade for a while.

This quarter's biggest deal - the acquisition of iSCSI chip maker Silverback Systems - had no impact on Brocade's bottom line. It ended the period with more than $630m cash at hand.

Brocade CEO Michael Klayko said: "It's an exciting time for Brocade and an exciting time for the industry." Shares in his firm were up more than four per cent on Tuesday morning. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
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.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.