Before we take your questions, investors should note our comments today may include forward-looking statements regarding Brocade's financial results, plans, market opportunities and business outlook, which are only predictions and involve risks and uncertainties such that actual results may vary significantly. These and other risks are set forth in more detail in our Form 10-K for the fiscal year ended October 29, 2011, and our Form 10-Q for the fiscal quarter ended January 28, 2012.
These forward-looking statements reflect beliefs, assumptions, outlook, estimates and predictions as of today, and Brocade expressly assumes no obligation to update any such forward-looking statements. In addition, this presentation may include various third-party estimates regarding the total available market for SAN and Ethernet, as well as other measures, which do not necessarily reflect the view of Brocade. Further, Brocade does not guarantee the accuracy or reliability of any such information or forecast.
This presentation includes non-GAAP financial measures. The most directly comparable GAAP information and a reconciliation between the non-GAAP and GAAP figures are provided in our Q2 2012 press release, which has been furnished to the SEC on Form 8-K and in our slide presentation and prepared comments on our website, brcd.com.
Here to take your questions are Mike Klayko, Brocade's CEO; Dan Fairfax, CFO; John McHugh, CMO;Dave Stevens, CTO and VP of Corporate Development; Jason Nolet, VP Data Center Networking; and Ian Whiting, Senior Vice President, Worldwide Sales. I'll now turn the call over to CEO, Mike Klayko. Mike? Michael A. Klayko Thank you, Rob. Brocade exited Q2 with $543.4 million in revenue and $0.15 in EPS on a non-GAAP basis. We reported revenue at the high-end of our guidance, and we exceeded our expectation for EPS, which was up 24% year-over-year and marked the third consecutive quarter of non-GAAP EPS year-over-year growth of nearly 20% or more. And the solid year-over-year improvement in EPS was primarily driven by an expansion of both gross margin and operating margin, lower interest expense and a reduction in the company's share count.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts