Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Brocade Boasts Big Quarter

Brocade emerged from its latest quarter with impressive earnings -- and Cisco nipping at its heels.

The company today posted earnings slightly above its January predictions. (See Brocade Reports Q1.) Revenues for the quarter ended January 27 were $224.2 million, up 7 percent sequentially and 32 percent year-on-year. GAAP net income was $33.3 million, or $0.12 per share basic and diluted, a increase of 67 percent sequentially and 245 percent year-on-year.

Despite acquiring chipmaker Silverback this quarter, Brocade wrapped its books with $631.7 million in cash and equivalents, 8 percent more than the company posted in the last quarter of 2006, and 24 percent more than it had in the first quarter of 2006. (See Brocade Grabs Silverback and Brocade Announces Earnings.)

Brocade's biggest OEM customers are still the same: EMC, HP, and IBM together accounted for 72 percent of total revenues, and each accounted for 10 percent or more of the overall share. This is about the same customer profile Brocade had last quarter and at the same time last year.

Brocade closed its first quarter 2007 just two days before finalizing its purchase of McData. (See Brocade Closes Out McData.) Figures from the combination will be included in next quarter's report.

  • 1