Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Brocade Communications Posts Q1 Loss - Update

RELATED NEWS
Trade BRCD now with 

Brocade Communications Systems Inc. (BRCD: Quote) 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%.

Register
To receive FREE breaking news email alerts for Brocade Communications Systems Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The United Nations Security Council (UNSC) on Thursday declared the ongoing Ebola outbreak in West Africa "a threat to international peace and security." Notably, the declaration was made in the Council's first emergency meeting on a public health issue. The fifteen-member Council also unanimously... Oracle Corp. said Thursday after the markets closed that its first quarter profit fell slightly from last year, hurt mainly by higher income tax expenses even as revenue increased 3%. The company's quarterly earnings per share, excluding items, also came in below analysts' expectations as did its quarterly revenue. After ending the previous session mostly higher following the Federal Reserve's monetary policy announcement, stocks saw further upside during trading on Thursday. The gains on the day lifted the Dow and the S&P 500 to new record closing highs.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.