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McData Sees Another Quarter Pounding

McData Corp. (Nasdaq: MCDTA) gave a mixed earnings report today. The good news: It didnt lose any key executives or lay off any employees. The bad news? It didn’t make much money last quarter and will be lucky to break even this quarter.

The SAN switch vendor reported revenues of $97.2 million, down 5.8 percent from a year ago and below the First Call

estimate of $98.94 million. Its earnings per share of $0.01 on $1.1 million net income beat a First Call estimate of break-even, but those figures were down from $0.06 and $6.7 million a year ago.

The results were in line with lowered guidance CEO John Kelley gave last month, when he lowered his estimates to between $94 million and $104 million in revenues and between a loss of $0.01 and a gain of $0.02 EPS. McData today blamed its lackluster performance on the same problems Kelley cited in April: slow product ramp, longer than expected product cycles due to more competition, and seasonality.

“We’ve had a very challenging quarter,” Kelley told analysts in a conference call today.

The current quarter doesn’t look much better. McData forecasts revenue in a range of $92 million to $100 million for an EPS of between minus $0.02 and break-even.

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