Brocade Communications' Profit Tops Expectations, But Shares Fall

Brocade Communications reported a fiscal fourth-quarter profit of $83.4 million, or 19 cents a share, up from $64.2 million, or 14 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share was 24 cents, beating the FactSet consensus analyst estimate of 23 cents. Sales rose 1% from last year to $564 million, above analyst forecasts of $563 million, as a 1.8% rise in product revenue offset a 3.1% decline in service revenue. The networking company's stock slumped 3.8% in after-hours trade on Monday. The stock had run up 32% year to date through Monday's close, compared with a 12% rise in the S&P 500.