Despite a loss attributed to changes in California tax codes, Brocade's revenue for the first fiscal quarter of 2013 soared over analyst expectations.
The networking solutions company reported a net loss of $21 million, or five cents a share (statement). Non-GAAP earnings were 21 cents a share on a revenue of $588.7 million.
Wall Street was expecting Brocade to report first quarter earnings of 16 cents a share on revenue of $575.6 million.
Likely due to the earnings loss, Brocade shares were down slighly by 1.2 percent in after hours trading.
In prepared remarks, CEO Lloyd Carney highlighted storage and IP networking businesses as strong spots for the quarter while offering a light plan about his objectives:
As the new CEO, it is my top priority to ensure that the company continues to execute well in our core businesses to drive growth and shareholder value. Looking forward, I see new opportunities emerging in the networking industry due to disruptive IT market trends that are challenging the capabilities of today's networks. It is clear that customers are looking for new technologies and approaches in networking to meet these challenges. I am excited and honored to navigate the company forward, delivering on these customer requirements in a way that drives top-line revenue through both innovation and operational efficiency.
Storage area networking, in particular, was a bright spot for Brocade in Q1 with a record-high revenue of $416.9 million, up three percent year-over-year and up six percent sequentially.
IP Networking business revenue did well too at $171.8 million, which is 11 percent year-over-year but down seven percent quarter-over-quarter.
Slides via Brocade Investor Relations