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Technology Stocks : Brocade Communications Systems,Inc. (Nasdaq-BRCD) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (448)	2/18/2000 6:45:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 1583

Brocade revenue soars 434%-Analysts raise revenue, earnings estimates By Myra P. Saefong, CBS MarketWatch Last Update: 4:23 PM ET Feb 18, 2000 SAN JOSE, Calif. (CBS.MW) -- Shares of Brocade Communications jumped 13 percent Friday as analysts raised their estimates on the company's future earnings because of a rise in revenue of 434 percent. Shares of the maker of fibre channel switches (BRCD: news, msgs) added 32 1/4 to 275 7/8 on Friday. After the markets closed Thursday, Brocade posted a first-quarter profit of $7.3 million, or 12 cents a share, compared to First Call analyst expectations for a 7-cent profit. A year ago, the company reported a loss of $1.8 million, or 4 cents per share. "The company posted a very strong performance for the quarter," Philip Rueppel of Deutsche Banc Alex. Brown said in a research note. Brocade's first-quarter revenue totaled $42.7 million, up 434 percent from $8 million a year earlier. Brocade's results "reflect our leadership as the networking foundation of choice for storage area networking infrastructure and the substantial growth of the storage area networking market," Greg Reyes, chief executive of the company said in a statement. Analysts appear to agree. "We continue to see strong growth in the storage area networks market," which is still in its "infancy," Rueppel said. He was expecting the company to report first-quarter revenue of $36.5 million. As a result, Rueppel raised his revenue and pro forma earnings-per-share estimate on the company's fiscal year 2000 to $230 million and 56 cents from $174 million and 30 cents, respectively. He reiterates his "buy" rating on Brocade's stock. Meanwhile, Paul Johnson of Robertson Stephens also reiterated a "buy" rating on shares of Brocade and raised his full-year 2000 revenue estimate to $226.7 million from $178 million. "The strength in the quarter was due to continued strong growth in original equipment manufacturer sales of fibre channel-based storage equipment and the building momentum of the company's systems integrator," Johnson said. Additionally, the San Jose, Calif.-based firm announced a two-for-one split of its common stock in the form of a stock dividend. Shareholders of record as of the close on Feb. 28 will get one additional share for each share of common stock they hold. Brocade's stock will begin trading on a split-adjusted basis on March 14. cbs.marketwatch.com