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Brocade's Q4 strong, ends fiscal year on a high

The networking virtualization and data storage provider managed to churn out its most profitable year in its corporate history for fiscal 2014.

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Brocade Communication Systems reported earnings for its fourth-quarter and fiscal 2014 Monday after the bell.

For the quarter, the networking virtualization and data storage provider reported a net income of $83 million, or 19 cents per share (statement), up from $64.2 million, or 14 cents a share, in the same period a year ago.

Non-GAAP earnings were 24 cents per share on revenue of $564 million, up one percent year-over-year.

Wall Street was looking for earnings of 23 cents per share and revenue of $562 million. 

Brocade managed to churn out its most profitable year in the company's history for fiscal 2014, reporting earnings of 53 cents per share on revenue of $2.21 billion.

The biggest highlight for Brocade's Q4 2014 came in the form of its IP Networking product revenue, which was $152 million, a 5 percent increase year-over-year and 15 percent increase quarter-over-quarter. The company also reported solid growth in datacenter revenue.

Brocade CEO Lloyd Carney said in prepared remarks:

"We delivered another strong quarter, highlighted by above-market growth of 9 percent in IP Networking product revenue and 2 percent SAN product revenue growth, on continuing products. Our focus is on helping customers migrate to the New IP, accelerating data center innovation, building on our software networking leadership, and delivering a world-class customer experience."

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Looking ahead to Q1 2015, Brocade expects revenue to be between $560 million and $580 million, with EPS between 23 cents and 25 cents.

Despite the beating expectations, Brocade's shares were down nearly four percent in after hours trading.