Brocade Earnings: Beats Estimates with a Swing Up

Brocade Communications Systems Inc. (NASDAQ:BRCD) climbed to a profit in the fourth quarter and beat Wall Street’s expectations in the process. 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 Inc. Earnings Cheat Sheet

Results: Reported a profit of $54 million (11 cents per diluted share) in the quarter. Brocade Communications Systems Inc. had a net loss of $4.3 million or a loss one cent per share in the year-earlier quarter.

Revenue: Rose 5% to $578 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Brocade Communications Systems Inc. reported adjusted net income of 17 cents per share. By that measure, the company beat the mean estimate of 11 cents per share. It beat the average revenue estimate of $541.4 million.

Quoting Management: “Q4 was an excellent quarter for Brocade and a strong ending for fiscal year 2012 during which we established a number of company records including revenue, net income, and operating cash flow,” said Michael Klayko, CEO of Brocade. “Our product portfolio across all areas of our business is the strongest it has ever been and we are driving industry transformation in emerging areas of growth including virtualized data centers, cloud computing, and software-defined networking. We believe Brocade is well-positioned for continued growth in fiscal 2013.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 5 cents in the third quarter, by 4 cents in the second quarter, and by 5 cents in the first quarter.

The company’s revenue has now risen for two quarters in a row. In the third quarter, revenue increased 10.4% to $555.3 million from the year-earlier quarter.

Looking Forward: The average estimate for the first quarter of the next fiscal year remains unchanged at 12 cents a share. The average estimate for the fiscal year is 50 cents per share, a rise from 49 cents ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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