Brocade Communications Systems, Inc. (NASDAQ:BRCD) reported net income above Wall Street’s expectations for the second quarter. The Company is a supplier of networking equipment, including end-to-end Internet Protocol based Ethernet networking solutions and storage area networking solutions for and service providers such as telecommunication firms, cable operators.
Brocade Communications Systems Earnings Cheat Sheet for the Second Quarter
Results: Net income for Brocade Communications Systems, Inc. rose to $27.6 million (6 cents/share) vs. $22.4 million (5 cents/share) in the same quarter a year earlier. A rise of 23.4% from the year earlier quarter.
Revenue: Rose 9.8% to $549.9 million YoY.
Actual vs. Wall St. Expectations: BRCD reported adjusted net income of of 13 cents/share. By that measure, the company beat the mean estimate of 10 cents/share. Estimates ranged from 9 cents per share to 11 cents per share. Analysts were expecting revenue of $550 million.
Quoting Management: “Brocade executed well in Q2 delivering nearly 10 percent growth year-over-year in revenue driven by strong performances in our Ethernet business among enterprises and service providers and stronger-than-expected performance in our SAN business,” said Michael Klayko, CEO of Brocade. “We are excited about our opportunities going forward as there is no doubt that the networking industry is in the beginning stages of a new innovation cycle driven by the IT imperatives of virtualization and cloud computing. We believe that Brocade has established a clear leadership position by out-innovating the rest of the industry and delivering purpose-built solutions to customers well-ahead of the competition.”
Key Stats: Revenue has risen the past four quarters. Revenue increased 1.2% to $546 million in first quarter. The figure rose 5.5% in fourth quarter of the last fiscal year from the year earlier and climbed 2.1% in third quarter of the last fiscal year from the year-ago quarter.
The company has now beaten estimates the last two quarters. In first quarter, it topped expectations with net income of 12 cents versus a mean estimate of net income of 6 cents per share.
Competitors to Watch: EMC Corporation (NYSE:EMC), Emulex Corporation (NYSE:ELX), NetApp Inc. (NASDAQ:NTAP), Hewlett-Packard Company (NYSE:HPQ), Cisco Systems, Inc. (NASDAQ:CSCO), Western Digital Corp. (NYSE:WDC), QLogic Corporation (NASDAQ:QLGC), Dot Hill Systems Corp. (NASDAQ:HILL), Overland Storage, Inc. (NASDAQ:OVRL), and Quantum Corporation (NYSE:QTM).
Stock Performance: Shares of BRCD are flat after hours from today’s close.