Brocade posts 3Q profit, revenue gain falls short
Network computing gear maker Brocade Communications Systems Inc. said Wednesday that it posted third-quarter net income of $22 million, reversing a loss as revenue grew.
But its revenue gains fell short of analyst forecasts and shares fell nearly 5 percent in after-hours trading Wednesday.
Net income for the three months to July 31 came to 5 cents per share, reversing a loss of 6 cents per share, or $23.5 million, in the same period a year ago.
Revenue rose 2 percent to $503.5 million from $493.3 million.
That was short of the $508.4 million expected by analysts polled by Thomson Reuters.
Adjusted earnings per share of 13 cents was met analysts' forecast.
Shares fell 31 cents, or 6 percent, to $4.83 in after-hours trading Wednesday after gaining 17 cents, or 3.4 percent, to close at $5.14 during the regular session.
CEO Michael Klayko said in a statement the company had better-than expected results in its storage area networking business and expects a "strong finish" through the end of fiscal 2010.