At least I was not too lazy this morning. I'm going to take the liberty of reporting about the CC last night from Brocade's earnings report, thanks to other's who listened in - I was in bed asleep on this side of the pond:
Brocade Conference Call Highlights:
*Y2000 will be an excellent growth year for FC and SAN beginning with First Quarter and growing from there.
*Revenue growth for this quarter weighed in at 457% year on year, 50% sequentially
*Market for FC (fiber channel) is accelerating and the acceptance of SANs is exploding
*The sales cycles are shortening with orders coming in faster post sales presentation
*Market acceptance is increasing.
*Management believes there will be an acceleration of SAN deployment in year 2000
*They have had accelerated pilots, and believes that in 2000 "stunning growth" will result as soon as Y2K is past
*At a recent VRTS conference, there were more than 1000 CIO's there to find out how to get started with SANs
*Market data so far only takes account of *new* deployments. Once initial
deployment takes place and customers see it work, they want to upgrade their
existing networks. The return on investment on storage consolidation is "stunning".
This upgrade cycle is a *huge* opportunity.
*The new Silkworm 2000 family, a new entry level product ramped up strongly.
40% of products shipped were these. The Silkworm 2000 family "offers a switch at
hub prices". Competes with hubs, but gives a migration path to switch fabrics, and
performs better.
*They are hoping to take share against loops with these new products. They think
Silkworm 2000 will be a winner and will get them a lot of business going forward
*When BRCD competes on performance, BRCD wins
*This consolidates BRCD as a market leader. Has largest installed base and broadest product line
*BRCD revenue is greater than that of all competitors combined
*BRCD's guidance is "extremely conservative" based on visibility. Is "can't miss guidance"
Here's the financial information:
From zdii.com :
$3.6M earnings, $30.1 revenue for $0.12EPS, compared to the $0.08 consensus.
The numbers from biz.yahoo.com :
Brocade Communications Q4 results
SAN JOSE, Calif., Nov 29 (Reuters) -
Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
Oct. 30, Oct. 31, Oct. 30, Oct. 31,
1999 1998 1999 1998
(unaudited)
Net revenues $30,094 $5,407 $68,692 $24,246
Cost of revenues 14,818 3,039 33,497 15,759
Gross margin 15,276 2,368 35,195 8,487
50.8% 43.8% 51.2% 35.0%
Operating expenses:
Research and development 5,485 3,433 15,267 14,744
Sales and marketing 5,511 1,334 13,288 5,154
General and administrative
1,434 571 3,849 3,813
Amortization of deferred
stock compensation 280 7 1,937 7
Total operating expenses
12,710 5,345 34,341 23,718
Income (loss) from operations
2,566 (2,977) 854
(15,231)
Interest income, net 1,068 (157) 1,737 120
Income (loss) before income taxes
3,634 (3,134) 2,591
(15,111)
Provision for income taxes 73 -- 106 --
Net income (loss) 3,561 (3,134) 2,485 (15,111)
Pro forma net
income (loss) per share 0.12 (0.17) 0.10 (0.84)
Shares used in the
calculation of pro forma
net income (loss) per share
29,141 18,267 25,572 17,915
Check the link, the formatting is beyond my technological skills. ;-)
BB
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