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Brocade Communications Systems Q2 2010 Earnings Call Transcript

Brocade Communications Systems (BRCD)

Q2 2010 Earnings Call

May 20, 2010 5:30 pm ET

Executives

Ian Whiting - Senior Vice President of Worldwide Sales and Marketing

Richard Deranleau - Chief Financial Officer, Principal Accounting Officer and Vice President of Finance

Daniel Fairfax - Vice President of Global Services

Dave Stevens - Chief Technical Officer

Michael Klayko - Chief Executive Officer, Director and Chairman of Corporate Development Committee

Analysts

Keith Bachman - BMO Capital Markets U.S.

Nikos Theodosopoulos - UBS Investment Bank

Jason Ader - William Blair & Company L.L.C.

Jeffrey Evenson - Bernstein Research

Glenn Hanus - Needham & Company, LLC

Erik Suppiger - Signal Hill

Kaushik Roy - Wedbush Securities Inc.

Mark Sue - RBC Capital Markets Corporation

Paul Mansky - Canaccord Genuity

Rajesh Ghai - ThinkEquity LLC

Min Park - Goldman Sachs Group Inc.

Kathryn Huberty - Morgan Stanley

Presentation

Operator

Ladies and gentleman, we'll resume.

Question-and-Answer Session

Operator

[Operator Instructions] Our question comes from Nimrod Marcet [ph](23:20).

Jason Ader - William Blair & Company L.L.C.

Yes, hi. It’s Jason Ader. Can you hear me?

Michael Klayko

Yes, we can, Jason. This is Mike. Before we take any questions here, we must had a faulty bridge. We apologize that we wasted 15 minutes of your life, all you guys on the phone, and so we're going to stay as long -- we're going to make up that time on the back end if there’s more questions. So I do apologize for that. We got through the technical difficulty. But with that, Jason, please ask your question.

Jason Ader - William Blair & Company L.L.C.

Well I guess my question is on the guidance for Q3. You guided flat to slightly up. You talked about sell-through being very strong on the Fibre Channel side. Obviously, you had a very nice rebound on the Ethernet side. Judging by that guidance, in order to hit the full-year guidance, I mean, Q4 would have to be just absolute monster quarter. So I guess I'm struggling to see how you get to that implied Q4 guidance with the Q3 guidance being as such. And then just kind of connected to that, why wouldn't the Fibre Channel business be stronger in July, or much, much stronger in July, just given the inventory reduction that you saw in Q2?

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