Brocade Lowballs Guidance

Updated from 8.59 a.m. EST

Brocade's(BRCD Quote) management issued a hasty clarification of the guidance it had given earlier Tuesday, and told skeptical investors to expect top-line growth of 14% to 17% next year, well above the original forecast.

The disappointing earlier guidance, coupled with a precipitous drop in earnings in the fourth quarter that the storage gear maker reported before the opening bell, sparked a sharp selloff in the stock.

At the close, shares were off 34 cents, or 7.5%, to $4.19 on heavy volume. ...