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McData Finishes With a Flourish

As it prepares to slip away and become part of its rival, McData says it actually increased revenues last quarter.

That's good news for its acquirer Brocade, which is working towards closing a $713 million deal to form a company some industry insiders are fondly, if awkwardly, calling BrocData. (See Brocade Bags McData For $713M.) McData lost money in the quarter but any customer it keeps or gains will stay under the Brocade banner and away from its vaunted rival Cisco following the acquisition. (See Users Ponder Life Under Brocade.)

In a report released Wednesday night after the markets closed, McData said it expects to report revenues of $155 million to $157 million. That's way down from its $168.5 million in the same quarter last year, but up from the $150.1 million in the previous quarter.

"Our higher-end product offerings showed particular strength this quarter, with solid revenue contribution from our Fibre Channel director, extension, and FICON product offerings," McData CEO John Kelley said in a statement. Kelley also said McData hit a record in services revenue, driven by a services business it picked up when it acquired CNT Networks last year.

McData will officially announce its earnings Nov. 30.

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