SAN JOSE, Calif., Feb. 17 (Reuters) -
                  Brocade Communications Systems, Inc.
                        Statements of Operations
                 (in thousands, except per share data)
                                         Three Months Ended
                                     Jan. 29,        Jan. 31,
                                         2000            1999
                                  (unaudited)     (unaudited)
 Net revenues                          $42,740         $8,007
 Cost of revenues                       20,084          3,321
     Gross margin                       22,656          4,686
 Operating expenses:
   Research and development              6,028          2,905
   Sales and marketing                   6,247          1,729
   General and administrative            2,036            741
   Amortization of deferred
    stock compensation                     280          1,157
     Total operating expenses           14,591          6,532
 Income (loss) from operations           8,065        (1,846)
 Interest income, net                    1,185              7
 Income (loss) before income taxes       9,250        (1,839)
 Provision for income taxes              1,942              0
 Net income (loss)                       7,308        (1,839)
 Pro forma net income
  (loss) per share                        0.12         (0.04)
 Shares used in the
  calculation of pro forma
  net income (loss) per share           58,884         44,166