Brocade's Q1 stronger than expected

Brocade's Q1 stronger than expected

Summary: Brocade cited strength in storage product demand and service provider customers. On the other side of the revenue equation, Brocade said enterprise and federal government sales were soft.

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Storage and Ethernet networking player Brocade delivered a strong fiscal first quarter that handily topped expectations.

Brocade reported fiscal first quarter earnings of $93 million, or 12 cents a share, on revenue of $561 million. Non-GAAP earnings were 20 cents a share and that included a 3 cent tax gain. No matter how you slice it Brocade's first quarter handily topped Wall Street non-GAAP earnings estimates of 13 cents a share on revenue of $542.4 million.

The company cited strength in storage product demand and service provider customers. On the other side of the revenue equation, Brocade said enterprise and federal government sales were soft.

Brocade said it is planning to deliver new campus local area networking products in the quarter ahead.

Here's a look at the nuts and bolts of Brocade's quarter. The biggest takeaway is that service providers are taking up a larger chunk of Brocade's sales.

Topics: Banking, Enterprise Software

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