Brocade Communications Systems Earnings: Profit Up
Falling revenue did not prevent Brocade Communications Systems Inc. (NASDAQ:BRCD) from reporting a profit boost in the second quarter. Brocade Communications Systems is a supplier of networking equipment, including end-to-end Internet Protocol based Ethernet networking solutions and storage area networking solutions for service providers such as telecommunication firms and cable operators.
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Brocade Communications Systems Earnings Cheat Sheet for the Second Quarter
Results: Net income for Brocade Communications Systems Inc. rose to $39.3 million (8 cents per share) vs. $26.1 million (6 cents per share) in the same quarter a year earlier. This marks a rise of 50.7% from the year-earlier quarter.
Revenue: Fell 0.9% to $543 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Brocade Communications Systems Inc. fell in line with the mean analyst estimate of 8 cents per share. Analysts were expecting revenue of $541.4 million.
Quoting Management: “We ended the quarter with revenue of $543 million, which came in at the high-end of our guidance, and exceeded our expectations for non-GAAP EPS, which was up 24% year-over-year. Our focus remains on driving profitability in the near-term as we invest in the business and position Brocade for long-term success,” said Michael Klayko, CEO of Brocade.
The company met estimates last quarter after topping forecasts in the previous quarter with net income of 15 cents versus a mean estimate of net income of 10 cents per share.
Looking Forward: The average estimate for the third quarter remains unchanged at 8 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from 37 cents per to share to 43 cents.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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