SAN JOSE, Calif. -- Brocade(R) (Nasdaq: BRCD), the leader in networked storage solutions that help enterprises connect and manage their information, today reported financial results for its second quarter of fiscal year 2007 (Q2 07), which ended April 28, 2007. Revenues for Q2 07 were $345.3 million. Revenues for Q2 07 increased 54% from $224.2 million reported in the first quarter of fiscal year 2007 (Q1 07) and increased 89% from $182.7 million reported in the second quarter of fiscal year 2006 (Q2 06). Q2 07 results include products and services acquired through the McDATA transaction which closed on January 29, 2007.
Commenting on the Company's second quarter results, CEO Michael Klayko said, "The fundamentals of our business remain strong and I am extremely pleased with our execution this quarter. We will continue to execute on our strategy of growth and diversification and we remain committed to delivering exceptional results."
Reporting on a GAAP basis, net income for Q2 07 was $0.8 million, or $0.00 per share basic and diluted. This reflects a decrease in GAAP net income of 98% from $33.3 million, or $0.12 per share basic and diluted in Q1 07, and a decrease of 94% from GAAP net income of $13.5 million, or $0.05 per share basic and diluted in Q2 06. The decrease quarter to quarter reflects the impact of non-cash amortization of purchased intangibles and related income tax adjustments from the McDATA acquisition.
Non-GAAP net income for Q2 07 was $46.6 million or $0.12 per share basic and $0.11 per share diluted. This reflects a decrease of 6% from non-GAAP net income of $49.4 million, or $0.18 per share basic and $0.17 per share diluted in Q1 07, and an increase of 77% from non-GAAP net income of $26.4 million, or $0.10 per share basic and diluted in Q2 06. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. A detailed reconciliation between GAAP and non-GAAP information is contained in the tables included herein.
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