Brocade Lowballs Guidance

Investors and some analysts, said Berg, whose company does not have a banking relationship with Brocade, understandably thought that the guidance was based on the lower revenue figure of $574 million, and dinged the stock.

What the company meant to convey, then, was revenue ranging from $660 million to $672 million, well above the $620 million to $671 million the market first believed. Management did not give earnings guidance for the year.

For the current, or first quarter, the company forecast sales ranging from $156 million to $161 million; analysts were looking for $150 million. Management expects the company to earn a 5-cent profit, which is in line with Wall Street's expectations.