18th > February > 2006 Archive

Broken CD with wrench

NetApp shines again in Q3

In the world of storage, some things remain constant as evidenced this week by Network Appliance's solid third quarter, and Brocade's confusing first quarter. NetApp's revenue surged 30 per cent to $537m during the third quarter. Net income jumped as well to $76.4m as compared to $60.1m in the same period last year. "NetApp achieved significant growth in revenue and profitability during the quarter, driven in large part by the compelling value proposition of our new FAS3000 midrange product line," said Dan Warmenhoven, CEO of NetApp. NetApp is looking for a similar performance in its fourth quarter, predicting revenue growth between 28 per cent and 30 per cent. Over at Brocade, investors witnessed a mixed bag. On the plus side, Brocade's first quarter revenue increased 5 per cent year-over-year to $170m. On the downside, Brocade's profit fell to $12.6m from $28m in the same period last year. These results beat Wall Street estimates. Of course, no Brocade financial statement is complete without an update on the SEC's ongoing investigation into how the company handled stock compensation. "During the quarter the company began active settlement discussions with the staff of the SEC regarding its restatements related to stock option accounting," Brocade said. "As a result of these discussions, in Q1 06, the company booked a $5.0m provision for an estimated settlement expense." ®
Ashlee Vance, 18 Feb 2006

QLogic has an Infiniband moment with PathScale buy

In BriefIn Brief QLogic has grabbed one of the more intriguing networking start-ups around with its $109m cash buy of PathScale. PathScale has a nifty compiler for x86 64-bit chips but has placed its real bet on an Infiniband adapter that delivers some dramatic networking improvements in Opteron-based server clusters. QLogic sees the PathScale buy as a way to capitalize on the growing interest in Infiniband. "PathScale's InfiniBand technology allows users to deploy large clusters of inexpensive rackmount and blade servers running Linux for high performance applications," said H.K. Desai, CEO at QLogic. "This acquisition demonstrates our commitment to entering new, high-growth markets that enhance our ability to achieve accelerated growth." Linux Networx has already placed InfiniPath chips from PathScale right into its pre-packaged clusters. Other server vendors are expected to buy the InfiniPath HTX Adapter. While PathScale only works with Opteron-based servers today, it has promised a PCI-Express product for the Xeon crowd that should arrive before the first quarter ends. The acquisition is expected to close by April. ®
Ashlee Vance, 18 Feb 2006