Brocade 1Q Profit Widens 17% on Record Server Revenue

FOXBusiness

Brocade Communications Systems (NASDAQ:BRCD) revealed late Thursday a stronger-than-expected 17% increase in first-quarter profit, led by slightly higher revenues and record server sales.

The San Jose, Calif.-based company posted net income of $27 million, or 6 cents a share, compared with $23 million, or 5 cents a share, in the same quarter last year.

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Excluding one-time items, the company earned 12 cents a share, ahead of average analyst estimates polled by Thomson Reuters of 10 cents.

Revenue for the supplier of end-to-end Internet protocol based Ethernet and storage area networking solutions was $546 million, up 1.2% from $539 million a year ago, beating the  Street’s view of $544.01 million.

During the quarter, revenue was driven in its storage networking business, helped by strong director product revenues and record server sales. It also saw its international Ethernet revenues up 30%, led by its Middle Eastern, Africa and Asian regions, which partially offset softness in federal spending and lower sales of services.

In a statement, Brocade CEO Michael Klayko said the company is pleased with the results, noting the company delivered the industry’s first fabric solutions, which he said have been well received by customers and the industry.

“These solutions will help enable our customers to rapidly migrate to virtualized data centers and serve as the building blocks for their cloud-based foundational architecture,” Klayko said.

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