Free-spending Brocade dinged in Q1
PrintMcData a McRevenue helper
Posted in Storage, 15th February 2008 00:42 GMT
Free whitepaper – Avoiding costs from oversizing data center and network room infrastructure
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. ®
Free whitepaper – Fundamental Principles of Generators for Information Technology
Straight Talk with Dell: Sending out an SaaS
Analyst Keynote: The Register Agile Data Center Summit
Thermal design of the Dell PowerEdge T610, R610, and R710 servers
Seven ways to lower storage costs
Ensuring high service levels in cloud computing
Apple sues over knock-off power bricks
US Air Force orders 2200 Sony PS3s
Xiotech definitely not using SSDs in near future
HP takes one in the servers