Feeds

Brocade results are solid as a rock

A couple of blips

Build a business case: developing custom apps

Brocade turned in satisfyingly solid results in its final 2008 quarter, beating its own guidance. The Foundry acquisition is on track, Cisco competition contained and it is preparing for a challenging first half in 2009.

Revenues in Q4, ended October 25, 2008, was $398.5m, up 17 per cent from Q4 2007's $340m. GAAP net income was $38m ($0.10/share) vs $32m ($0.08/share) a year ago. Non-GAAP EPS was $0.67 (2007 - $0.56/share).

Full year 2008 revenues were $1.47bn, 19 per cent higher than 2007 ($1.24bn) and net income was $169.5m ($0.45/share) vs FY'07's $76.9m ($0.56/share).

The company ended the year with $650.5m in cash and short term investments.

Services and file-based revenues were flat. The files business, which has been restructured to save costs, will be combined with parts of Foundry when the acquisition, which remains on track, closes. It doesn't look as if file virtualisation is going to be of much concern to customers next year.

Switch revenues rose 10 per cent year-on-year, revenues from embedded switches in servers rose 43 per cent year-on-year, director sales were up 25 per cent year-on-year and DCX revenues were half of director sales in Q4 2008. The HBA (Host Bus Adapter) business recorded no meaningful revenues. And we all wait with bated breath for next quarter's results when they might appear for the first time. The in-house developed HBA products are a big gamble for Brocade. But if it succeeds then both QLogic and Emulex could be adversely affected.

Average selling prices (ASP) declined in the low single digit range and this, combined with Cisco's 4 per cent decline in storage revenues in its last quarterly report, shows that competitive pressure is being contained. Brocade said.

Its outlook is not a doom-mongering one, but neither is it sunny. A challenging first half in 2009 will lead to expected 2009 revenues of $1.44bn-$1.49bn. This is either a small decline or small growth. Non-GAAP earnings per share outlook is $0.57-$0.60, compared to this year's $0.67. Much will depend on the Foundry acquisition proceeding smoothly and the economy not racking into any more ruin. ®

Boost IT visibility and business value

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.