After the Bell: Brocade Leads Storage-Stock Fall
By Ari Weinberg
Investors continuing to unload their information storage stocks picked on a seeming winner Wednesday afternoon. Brocade Communications, a maker of switches
and software for storage networks, is down 16.36 percent, or $7.31, to $37.38 in after-hours trading. The company reported net income of 13 cents per share for
the first quarter – exceeding the analyst consensus by a penny. And, while the company's published statement showed little worry for the coming year, Brocade
executives were cautious in a conference call with analysts. The company expects flat to modest revenue growth for the second quarter. The current consensus calls
for 14 cents per share for the second quarter, but chances are most analysts covering the stock will reevaluate their models. Brocade's 52-week high was $133,
reached in late October.
Other storage stocks are getting drubbed after hours as well. Another switchmaker, McData is down $2.92, or 11.5 percent, to $22.31. Circuit-board maker
QLogic is down $5.62, or 13.8 percent, to $34.94. Storage infrastructure leader EMC is down $3.06, or 7 percent, to $39.89.
Sun Microsystems, after dropping 11.8 percent in Wednesday's regular trading, is down another 3.82 percent after the bell. Currently, the stock is trading at
$18.88. The network computing company was downgraded Wednesday by Merrill Lynch from "accumulate" to "neutral." Investors are anxious to hear what Sun's
executives have to say on Thursday's mid-quarter conference call.
Optical component maker JDS Uniphase, down 7.65 percent during the day, is off another 3.35 percent in after-hours trading on Wednesday. Shares are currently
trading at $30.63. The company announced the acquisition of Optical Process Automation - a maker of systems for the manufacturing of fiber-optic components. |
