logo
Share SHARE
FONT-SIZE Plus   Neg

Brocade Communications Posts Q1 Loss - Update

Brocade Communications Systems Inc. (BRCD) Thursday reported a swing to loss in the first quarter from a profit last year, hurt mainly by a hefty tax charge. Excluding one-time charges, adjusted earnings for the quarter improved, as revenues and margins increased. Both earnings and revenues for the quarter came in ahead of analysts' estimates.

San Jose, California-based Brocade reported a first quarter loss of $21.26 million or $0.05 per share, compared to a profit of $58.58 million or $0.12 per share last year.

The first-quarter results include a non-cash tax charge of $78.2 million or $0.17 per share, due to a tax change in California which also reduced deferred tax assets.

Excluding one-time items, adjusted earnings for the quarter improved to $0.21 per share from $0.20 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Brocade engages in the supply of Internet protocol based Ethernet networking solutions and storage area networking solutions. Brocade's first-quarter revenues grew 5 percent to $588.7 million from $560.6 million last year. Twenty four analysts had a consensus revenue estimate of $575.62 million for the quarter.

Storage Area Networking business revenues were up 3 percent year-over-year, while IP Networking business revenues rose 11 percent.

Gross margin improved to 63.5 percent form 61.5 percent last year. Operating margin rose to 15.8 percent from 12.4 percent last year.

BRCD closed Thursday's trading at $6.00, up $0.24 or 4.17%, on the Nasdaq. In after hours, the stock slipped $0.12 or 2.00%.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
British lender Lloyds Banking Group Plc. Friday reported higher profit in its first half, benefited by increased net interest income and margin as well as lower impairment. Looking ahead, the company lifted its net interest margin forecast. Amgen reported an increase in second-quarter profit, driven by sales of arthritis drug Enbrel and osteoporosis treatments Xgeva and Prolia, and improved margins. Both earnings and sales topped Wall Street estimates. Electronic Arts Inc. (EA) on Thursday reported an increase in profit for the first quarter, reflecting continued strong digital revenues, with both earnings and revenues topping Wall Street estimates. However, shares of the company fell over 4 percent, after having detailed a weak outlook. Redwood...
comments powered by Disqus
RELATED NEWS
Trade BRCD now with 
Follow RTT