Brocade profits McDisappear
Overworked PR team in critical condition
Brocade is ending a big week overflowing with product announcements, stomping on is partners' toes and a healthy federal pay-off with something very small:
Brocade's net income took a dive in their second quarter, as the data storage equipment maker continues to suffer from acute financial indigestion after eating rival McData for $973m.
Net income was $843,000 for its fiscal second quarter ended in April, compared with income of $13.5m a year ago. Brocade's latest earning report represents its first combined quarter with McData.
Excluding the McAquisition, legal fees, compensation expenses and other one-time items, however, Brocade reported a quarterly profit of $46.6m.
Revenue nearly doubled at $345.3m, up from $182.7m during the same quarter last year.
CEO Michael Klayko said on conference call he was happy with the earnings, despite it being a seasonally soft quarter for the business. Klayko added that demand was good across all three segments of Brocade's business.
For the current quarter, Brocade expects to report revenue between $330m and $340m.
Earlier this week, Brocade announced a plethora of new and upgraded software and hardware for the company's storage area network and file area network lineup.
Today, the company ponied-up $7m to settle SEC charges of falsifying reports of income through backdating and misreporting compensation expenses.
Brocade washed this down with the announcement that it will move into the host bus adapter market, an area previously towed by Brocade partners QLogic and Emulex.
Lastly, the company finishes its coup of The Register's front page with today's earnings report. ®