Brocade , Fiber optic switch maker posts record profit,
announces 2-for-1 stock split.
November 29, 2000: 5:09 p.m. ET
NEW YORK (CNNfn) - Brocade Communications Systems Inc. reported record fiscal
fourth-quarter earnings and revenue that beat analysts' expectations, and announced a
two-for-one stock split and strong revenue forecast for next year.
But nervous investors initially sent the shares of the stock down in after-hours trading before
a bullish revenue forecast from the company turned around a two-day slide for its stock.
Shares of Brocade (BRCD: Research, Estimates) fell as much as $9.13 from Wednesday's
close to $144.63 in initial after-hours trading, after losing $7.25 to $153.75 in regular-hours
activity ahead of the report. But the stock started climbing again when a company officials told
analysts that revenue projections would be much better than hoped. Immediately after the
statement the stock climbed to $148 in after-hours trading.
The stock had fallen almost 15 percent Tuesday on concerns about the earnings report.
The San Jose, Calif.-based company,
which makes the fiber optic switches that
link computer storage networks, reported
net earnings of $27.2 million, or 22 cents a
diluted share, for the period ending Oct. 28.
Analysts surveyed by earnings tracker
First Call were looking for earnings of 20
cents a share in the period. The company
earned $3.5 million, or 3 cents a share, in
the year-earlier period.
The company posted revenue of $132.1
million, up from $30.1 million in the year-earlier period, and $92.1 million in the third quarter this
year. Analysts were looking for revenue of $118.9 million in the most current period according
to First Call.
A company official told analysts it now expects fiscal 2001 revenue would be about $830
million, or about 150 percent greater than it reported for the past 12 months. That's up from the
115 percent growth rate it had projected three months ago.
But since the company's statement did not give any guidance on 2001 earnings and revenue
some investors may have panicked immediately upon its release. |
