End-of-Quarter Earnings Jitters Punish McData
Storage vendor McData(MCDTA) was down sharply Thursday, apparently on concerns that a pricing dispute with a major customer could cause it to miss its October quarter.
In recent trading, the Broomfield, Colo. company was off $1.22, or 10%, to $10.89. According to Robert Montague, the RBC Capital Markets analysts who broke the news in a note to clients Thursday morning, EMC(EMC), a major buyer of McData's storage switches, has been pushing hard for end-of-quarter pricing concessions. But McData, said Montague, is not "bending to EMC's pressure, resulting in what appears to be a serious impasse. Therefore, the October quarter is uncertain and a preannouncement is possible in the near future." Analysts polled by Thomson First Call expect McData to earn a 4-cent profit on sales of $109.75 million in its fiscal third quarter. McData, and its rival in the switching market, Brocade(BRCD), face increasing competition from Cisco Systems(CSCO), which has moved aggressively into their territory.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
ETF Profits:
Get money-making ideas from the hottest investment vehicle on the planet. Our experts show you how to play various ETF sectors to help pump-up your portfolio. Learn More
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn MoreTo begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 12,890.46 | 1,351.95 | 2,927.23 | 20.47 |
Oil *
118.75
|
|
UP
6.51 |
UP
1.99 |
UP
11.37 |
UP
0.72 |
10 Yr
2.05%
SPDR Gold
168.02
|
|
+0.05%
|
+0.15%
|
+0.39%
|
+3.65%
|
Data delayed 20 minutes |
Connect with TheStreet