Brocade tops Q1 estimates fueled by IP networking growth

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

The networking solutions provider reported a net income of $87 million, or 20 cents per share (statement).

Non-GAAP earnings were 27 cents per share on a revenue of $576 million, up two percent year-over-year as well as quarter-over-quarter.

Wall Street was looking for earnings of at least 24 cents per share with $569.75 million in revenue.

Brocade CEO Lloyd Carney highlighted double-digit revenue growth for the IP networking group in prepared remarks.

That department produced $133 million in revenue last quarter, up 11 percent year-over-year but down 13 percent sequentially.

"With a strong focus on the data center, we continue to invest strategically in disruptive technologies to build a portfolio of solutions that capitalize on the opportunities afforded to first-movers in the New IP era," wrote Carney.

SAN product unit revenue rang up to $353 million, flat year-over-year and up nine percent sequentially.

For the current quarter, analysts expect Brocade to deliver earnings of 21 cents per share with $548.14 million in revenue.