Thursday November 29 12:01 AM EST
Storage company Brocade beats estimates
By Stephen Shankland;Sam Ames CNET News.com
Storage-switch maker Brocade Communications Systems reported lower income and revenue Wednesday for its fiscal fourth quarter but managed to exceed analysts' expectations.
dailynews.yahoo.com
The San Jose, Calif.-based company posted pro forma net income of $10.9 million, or 5 cents a share, excluding items, on revenue of $116.5 million. That compares with income of $27.2 million, or 11 cents a share, and revenue of $132.1 million for the same quarter a year ago.
"In the face of a very challenging economic and geopolitical environment, not only did Brocade see its way through this, we executed flawlessly," boasted Chief Executive Greg Reyes in an interview.
Reyes attributed the company's comparatively good results to companies need to wring more use out of existing storage systems by sharing them among several servers with a storage area network (SAN) instead of directly attaching them to each server. "If you want to consolidate servers and storage, you need a SAN to do it," he said.
Brocade also said in a statement that about $1.16 million of pro forma net income came from the sale of securities in the fourth quarter.
In the previous quarter, the maker of switches and software for computer data storage equipment reported revenue of $116.3 million, reflecting sluggish times in the industry as corporations cut back on technology spending.
Analysts surveyed by First Call expected Brocade to post earnings of 4 cents a share and revenue of $110.9 million. |
