Brocade meets earnings targets with solid Q3
Tech Earnings
Brocade Communication Systems reported its fiscal third-quarter profit and earnings Thursday after the bell.
The networking virtualization and data storage provider reported a net income of $87 million, or 20 cents per share (statement).
Non-GAAP earnings were 23 cents per share on revenue of $545 million, up 2 percent year-over-year.
Wall Street was looking for earnings of 19 cents per share and revenue of $534.7 million.
Brocade CEO Lloyd Carney reflected on the positive quarter in prepared remarks:
With another solid quarter behind us, we are seeing the tangible benefits of our datacenter-focused strategy. The resilience and durability of our SAN business, along with strong Brocade VDX sales, validate our strategic direction. We continue to leverage our core competencies in hardware and software networking to position the company for growth, and we remain focused on delivering a world-class customer experience, even in the most demanding environments.
Here's a closer look at how the quarter turned out:
- SAN business revenue: $380 million, up 3 percent year-over-year and flat sequentially
- IP Networking business revenue: $166 million, down 1 percent year-over-year, but up 5 percent sequentially
- IP Networking product revenue: $133 million, down 1 percent year-over-year, but up 9 percent sequentially
For its fourth quarter outlook, Brocade expects revenue in a range of $550 million to $570 million, with earnings per share between 21 cents and 23 cents.