Wednesday, August 15, 2012

Brocade Reports Strong Results, Sales up 10% YoY

Brocade reported revenue of $555.3 million for its third fiscal quarter of 2012, representing an increase of 10% year-over-year and 2% quarter-over-quarter. GAAP diluted earnings per share were $0.09, up from break-even EPS in Q3 2011.

"Fiscal Q3 was a great quarter for Brocade. With continued differentiation in our products and focused execution across our organization, we were able to overcome many issues in the current challenging macroeconomic environment. As a result, our financial performance in the quarter exceeded our expectations for revenue, operating margin and earnings per share," said Michael Klayko, CEO of Brocade.

Some highlights:

Storage business revenue, including products and services, was $377.6 million, up 13% year-over-year and down 6% sequentially. Storage product revenue increased 17% year-over-year and decreased 6% sequentially, in a seasonally soft quarter for the company. Brocade's 16 Gbps Fibre Channel products represented nearly 30% of director and switch revenue in the quarter.

Ethernet business revenue, including products and services, was $177.8 million, up 5% year-over-year and up 24% quarter-over-quarter. Revenue growth for the Ethernet business was driven by an increase in Federal sales, which were up 40% year-over-year and 108% quarter-over-quarter. Enterprise business revenue was up 2% year-over-year and up 21% quarter-over-quarter as the Brocade ICX products continue to ramp. Service provider business revenue was up slightly quarter-over-quarter and down 5% year-over-year.