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Brocade tops forecasts

Brocade Communications Systems topped analyst estimates in the first quarter.

After market close Wednesday, the maker of switches and other devices for storage area networks reported fiscal first-quarter net income of $32.5 million, or 13 cents per share, on revenue of $165 million. Analysts surveyed by earnings tracking firm First Call produced a consensus forecast calling for a profit of 12 cents per share on revenue of $162.5 million for Brocade's quarter ended Jan. 27.

"Brocade's fundamentals continue to be robust," CEO Greg Reyes said, during a Wednesday conference call with analysts.

Shares of Brocade traded at $45.25 in Wednesday's after-hours activity immediately following the news. Brocade stock fell 19 cents to $44.69 in Wednesday's regular trading, ahead of the earnings report.

First-quarter revenue increased 286 percent year-over-year and 25 percent sequentially. Deferred revenue increased to $9.1 million from $2 million at the end of the fourth quarter. The company ended the quarter with $211 million in cash, up $56 million from the end of October.

Brocade said its revenue share of the market for storage area network infrastructure rose 2 percent to more than 61 percent.

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