SAN JOSE, Calif. -- Brocade(R) (Nasdaq: BRCD), the leader in networked storage solutions that help enterprises connect and manage their information, today announced the completion of a Reverse/Forward stock split, designed to reduce the number of stockholders with less than 100 shares in the Company's stock by exchanging their shares for cash. As a result of the corporate action, Brocade's stock ticker symbol (BRCD) will have a fifth character, "D" (BRCDD) for approximately 20 trading days following the corporate action. The Company expects the stock ticker symbol will return to BRCD on July 26, 2007.
As previously disclosed in the Company's quarterly report on Form 10-Q for the quarter ended April 28, 2007, at the Annual Meeting of Stockholders held on April 19, 2007, the Company's stockholders approved a proposal to amend the Company's Amended and Restated Certificate of Incorporation to effect a 1-for-100 reverse stock split (the "Reverse Split") immediately followed by a 100-for-1 forward stock split of the Company's Common Stock (together with the Reverse Split, the "Reverse/Forward Split").
Effective June 26, 2007, the Company implemented the Reverse/Forward Split by filing amendments to its Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware.
For stockholders that held less than 100 shares of Common Stock prior to the Reverse Split, shares of Common Stock that would have been converted into less than one share in the Reverse Split were instead converted into the right to receive a cash payment equal to $8.44 per share, an amount equal to the average of the closing prices per share of Common Stock on the Nasdaq Global Select Market for the period of ten consecutive trading days ending on (and including) the effective date.
Brocade Communications Systems Inc.