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 U.K. economy grew more than estimated in the second quarter and the current account deficit widened from the first quarter, the Office for National Statistics said Tuesday. Gross domestic product grew 0.9 percent sequentially, up from the prior estimate of 0.8 percent. The annual growth was confirmed at 3.2 percent. Eurozone inflation slowed in September, as expected, to the lowest since late 2009 and the unemployment rate remained stable at a double digit level in August putting pressure on the European Central Bank to launch a full-blown easing. Inflation came in at 0.3 percent, slower than August's 0.4 percent. This was the lowest since October 2009, when prices fell 0.1 percent. Chinese authorities on Tuesday eased some rules for mortgages for buying a second home, in a bid to boost the housing market. The People's Bank of China and the China Banking Regulatory Commission said in a joint statement that buyers who already own one apartment, but have paid off the mortgage...
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.