Brocade recorded quarterly revenues of $504 million for its third fiscal quarter ended July 31 for an increase of two percent year-over-year, resulting in a diluted earnings per share (EPS) of $0.05 on a GAAP basis and $0.13 on a non-GAAP basis.
The company reported better-than-expected revenue in storage area networking (SAN) with switch revenue growing double digits sequentially in what is typically a seasonally challenging quarter. However, its overall Ethernet business was slightly down sequentially primarily due to softness in Japan and in its Federal business, which was down 16% from a strong performance in Q2, while up 15% year-over-year. Brocade said it added more than 1,000 net new Ethernet customers in the quarter, and recruited new talent from across the industry.
“Q3 was another solid quarter for Brocade in which we achieved better-than-expected results from our storage area networking business and continued to make progress in our Ethernet go-to-market initiatives,” said Michael Klayko, CEO of Brocade. “As we look to Q4, we expect a strong finish to our fiscal 2010. Despite operating in a challenging global economy with variable IT spending patterns, we are confident that our sales and marketing strategies as well as our product portfolio are aligned well with customer imperatives.”http://www.brocade.com
