Feeds

Free-spending Brocade dinged in Q1

McData a McRevenue helper

Beginner's guide to SSL certificates

Brocade's profits took a beating during its first fiscal quarter of 2008, as the company's legal fees and lossy investments gave revenues a once-over.

The storage switch maker's GAAP net income dropped 40 per cent to $19.8m from $33.3m in the same period last year. Brocade attributed the slump to one-time operating expenses, such as $9.66m paid in legal fee obligations to its previous employees. (Two former top executives were recently convicted of conspiring in an illegal stock option backdating scheme.) Other expenses include $2.2m from investment losses. Total operating expenses rose to $151.3m from $101.9m year-over-year.

In the theoretical non-GAAP universe where these costs never existed, net income would have been $64.2m, a 30 per cent increase from $49.4m a year ago.

Revenue jumped 55 percent to $347.85m from $224.16m year-over-year. But keep in mind any number prior to Q2 2007 doesn't include earnings from McData.

OEM sales accounted for 88 per cent of revenue for the quarter. Channel/Direct sales were 12 per cent of revenue. The company's top three customers, EMC, Hewlett-Packard, and IBM accounted for two-thirds of the total revenue.

Brocade's biggest announcement during the quarter was the DCX Backbone, a massive 8Gb/s Fibre Channel switch that the company says will be the cornerstone of its new generation of data center gear. ®

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
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
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
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.