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Brocade, McData Send Mixed Messages

Two key storage area networking (SAN) vendors have made a key reseller the battleground for a dramatic faceoff.

Within hours of each other, Brocade Communications Systems Inc. (Nasdaq: BRCD) and McData Corp. (Nasdaq: MCDT) reported dramatically different news.

And in each case, reseller EMC Corp. (NYSE: EMC) plays a role.

Here's the story: Last night, McData reported fiscal first-quarter 2001 revenues of $83 million, up 6 percent sequentially and 76 percent year to year. Earnings per share are expected to be 8 cents, up 33 percent year to year.

This morning, Brocade predicted an earnings shortfall for the quarter set to end April 28. The company now expects net revenues to be 30 percent lower than they were the preceding quarter. Diluted net income per share for this quarter is expected to be 5 to 6 cents on revenues of $115 million, compared with diluted net income per share of 13 cents on revenues of $165 for the first quarter of fiscal 2001.

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