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To: Johnny Canuck who wrote (39625)	5/30/2003 4:23:16 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69962

UPDATE - McData posts profit, may beat 2nd-qtr estimates Thursday May 29, 7:27 pm ET (Updates with share price, CEO interview, analyst comment; previous NEW YORK) SAN FRANCISCO, May 29 (Reuters) - McData Corp. (NasdaqNM:MCDT - News), a data storage switch maker, on Thursday reported a first-quarter profit compared with a year-earlier loss after a 60 percent rise in revenues. Click Here The Broomfield, Colorado-based company also said its current quarter revenues could be higher than analysts had expected. McData shares rose 9.5 percent in after-hours trading to $12.13 after having closed up 3 cents, or less than 1 percent, at $11.08 on the Nasdaq. McData reported a net profit of $5.3 million, or 5 cents per share, for the quarter ended April 30, compared with a net loss of $17.07 million, or 15 cents per share, in the same quarter a year earlier. The year-earlier quarter ended one month earlier, on March 31, 2002, because the company at the beginning of 2003 moved its fiscal year-end by one month to the end of January. The rival of Cisco Systems Inc. (NasdaqNM:CSCO - News) and Brocade Communications Systems Inc. (NasdaqNM:BRCD - News) also said its sales jumped to $103.2 million from $64.54 million a year earlier. In early May, McData said it expected to post quarterly revenue of $102 million to $103 million and said it expected earnings of at least 4 cents per share. McData, which was spun off from data storage systems company EMC Corp. (NYSE:EMC - News), said EMC accounted for 61 percent of revenue while International Business Machines Corp. (NYSE:IBM - News) accounted for 17 percent. The company said it expects revenues in the range of $106 million to $110 million for the second quarter ended July 31 with adjusted earnings of 6 to 7 cents per share. Analysts had expected the company to post earnings of 6 cents per share in the July quarter and revenue of $106.2 million, according to market research firm Thomson First Call (News - Websites). "The SAN (storage area network) market is growing," said John Kelley, McData's president and chief executive. "That spending drives the kind of things we do." McData is executing well with its mid-range product, which saw strong quarter-on-quarter growth as mid-sized companies rolled out storage area networks and large enterprise customers, which include corporations, expanded their storage area networks, said Mark Sue, an analyst with C.E. Unterberg, Towbin. Sue noted the company's revenue outlook reflects strong partnerships with EMC and IBM. McData makes products for the two companies and others partners, who then sell them under their names. McData shares had gained about 57 percent this year as of the close of regular trading on Thursday. That compares with a 14 percent rise in the American Stock Exchange Computer Hardware index (AMEX:^HWI - News).