Brocade beats Q3 estimates, issues dividend

Wall Street was looking for earnings of 22 cents per share, with revenues of $550.5 million.

Brocade published financial results for its third quarter after the bell on Thursday.

The networking company reported third quarter income of $92 million with earnings of 21 cents per share (statement). Non-GAAP earnings were 27 cents per share on revenue of $552 million.

Wall Street was expecting earning of 22 cents per share on revenue of $550.5 million.

At the end of the second quarter, Brocade had $1.32 billion of cash and investments.

Brocade chief executive Lloyd Carney said he was "pleased" with the company's performance in the three-month period. He added:

"Our IP Networking revenue growth of 16 percent continues to outpace the market with strong performance from both service provider and U.S. federal customers. As the storage market evolves, our SAN business continues to demonstrate the vital role of Fibre Channel as customers connect both traditional disk storage and next-generation flash arrays. Brocade is well positioned with our customers, partners, and products heading into the final quarter of our fiscal year."

For the quarter, SAN product revenue was down 5 percent year-over-year to $309 million. On the other hand, IP networking product revenue was $154 million, up 16 percent year-over-year.

The board declared a 4 cents dividend, payable in early October.