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McData Wraps Rocky Year

McData Corp. (Nasdaq: MCDTA) had a better-than-expected fourth quarter, but the results failed to mask a rough year for the SAN switch vendor.

McData today reported revenue of $105.8 million and net income of $6.8 million, or earnings per share (EPS) of $0.06, for last quarter. According to Thomson First Call, analysts expected revenue of $104 million and $0.05 EPS, both numbers in the middle of guidance McData gave last November (see McData Merely Mediocre).

While McDatas income rose 7 percent sequentially, it also fell 7 percent from the fourth quarter of the previous year. Net income rose substantially, though, up 48 percent from $4.6 million the previous quarter and 58 percent from $4.3 million last year.

For the full year, McData’s revenue of $399.8 million dropped 5 percent from $418.9 million in the previous year. Net income of $14.5 million and $0.13 EPS for the year also fell, from $24.5 million and $0.20 the previous year.

McData lost ground to both of its major rivals from the same period a year ago. Switch market leader Brocade Communications Systems Inc. (Nasdaq: BRCD) reported an 11 percent year-over-year increase for last quarter to $161.6 million (see Brocade Boasts Strong Quarter). Cisco Systems Inc. (Nasdaq: CSCO), which seems to be cutting into McData’s stronghold in the director market, reported its storage revenue jumped 70 percent year-over-year to $56 million (see Cisco Storage Spikes).

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