Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Brown who wrote (24795)	5/15/2000 4:16:00 PM
From: Bruce Brown	Read Replies (1) \| Respond to of 54805

BROCADE REPORTS RECORD REVENUES AND EARNINGS FOR SECOND QUARTER FISCAL 2000 Download the details now in PDF format! SAN JOSE, Calif.-May 15, 2000-Brocade Communications Systems, Inc. (BROCADE©) (Nasdaq: BRCD), the leading supplier of Fibre Channel fabric solutions for Storage Area Networking, reported today net revenues for the second quarter of fiscal 2000 (Q2 00) of $62.1 million, a 489 percent increase over the $10.5 million reported for the second quarter of fiscal 1999 (Q2 99), and a 45 percent increase over the $42.7 million reported in the first quarter of fiscal 2000 (Q1 00). Net income was $13.3 million in Q2 00, a $14.2 million increase over the net loss of $0.8 million reported for the same period in fiscal 1999, and an 82 percent increase over the $7.3 million reported in Q1 00. Diluted net income per share for Q2 00 was $0.11 compared to a net loss per share of $0.01 in Q2 99 and net income per share of $0.06 in Q1 00. During Q2 00, BROCADE generated $15.1 million in cash, after purchasing $5.1 million of capital equipment and making equity investments of $5.0 million. Total cash and short-term investments at April 29, 2000 were $111.5 million. Accounts receivable days sales outstanding were 51 days at the end of Q2 00, which is the same as in Q1 00. Inventory represents approximately 11 days of sales on hand (annualized turns of 33 times per year). Annualized quarterly return on stockholder's equity increased from 31.4 percent in Q1 00 to 49.2 percent in Q2 00. Annualized quarterly return on assets rose from 21.6 percent in Q1 00 to 31.8 percent in Q2 00. Gross margins increased during Q2 00 to 58 percent of net revenues from the 53 percent reported in Q1 00. The margin improvements were principally due to an increased level of shipments of the BROCADE SilkWorm© 2400 and 2800 products and an increased level of sales to the system integration channel. Operating income as a percentage of net revenues improved from 18.9 percent of revenues in Q1 00 to 25.2 percent in Q2 00. Financial results reflect an effective tax rate of 21 percent. "We are pleased to deliver to our shareholders the fourth consecutive period of quarter over quarter revenue and earnings growth," said Greg Reyes, BROCADE President and Chief Executive Officer. "As data storage requirements continue to increase at incredible rates, BROCADE has achieved a market leadership position in providing a scalable, standards-based networking infrastructure for storage area networks (SANs). The BROCADE brand is now recognized worldwide by customers as representing quality, performance and scalability." brocade.com BRCD & NTAP team up.... Network Appliance, Inc. (NASDAQ: NTAP), the leading provider of dedicated data access appliances and BROCADE Communications Systems, Inc., (BROCADE©) the leading supplier of Fibre Channel switches, announced a technology partnership to develop storage networking architectures integrating the benefits of both storage area networks (SAN) and network attached storage (NAS) environments. Both SAN and NAS address the growing complexity of managing the explosive growth of data in today's enterprise environments. In order to reduce this complexity, Network Appliance and BROCADE have partnered to create a single, high performance storage solution for managing and sharing enterprise data over an integrated SAN and NAS architecture, using common protocols for data access. The new, combined SAN and NAS architecture will support increased enterprise scalability and utilize existing industry-standards like TCP/IP and Fibre Channel. Data sharing, storage management, backup and network administration will become simpler and more effective, leading to reductions in total cost of ownership. "Combining the benefits of SAN and NAS architectures will create powerful storage solutions for even the most complex corporate data center requirements," said Kevin Reinis, director of storage marketing, Dell Enterprise Systems Group. "Our commitment to both the SAN and NAS architectures positions us to bring the value of Dell's direct business model to the solutions we provide for the distributed and centralized storage requirements of our most demanding customers."