Updated for latest price quotes, added content.

NEW YORK ( TheStreet) -- Shares of Brocade Communications ( BRCD) slumped in extended trading on Monday after the San Jose, Calif.-based networking equipment maker topped analyst expectations for its fourth-quarter profit but said it could see a sequential decline in revenue for the current quarter.

The company forecast revenue of between $535 million and $550 million for its fiscal first quarter ending in January, a performance that at best would be flat with its fourth-quarter total of $550 million. The current average estimate of analysts polled by Thomson Reuters is for revenue of $557 million in the January period. Brocade attributed the weak outlook to an expected decline in its ethernet business with the federal government in the wake of the mid-term elections and resulting "uncertainty in Congress" with appropriations legislation for fiscal 2011.

The stock was last quoted down 4.7% at $5.43, according to Nasdaq.com, on volume of roughly 2.9 million, which compares to the issue's trailing three-month daily average of 17.3 million. Based on a regular session close of $5.70, the shares are down more than 24% so far in 2010.

Brocade projected non-GAAP earnings of 9 to 10 cents a share for the January period, well below Wall Street's current consensus view of 14 cents a share. For the fiscal fourth quarter ended in October, the company reported an adjusted profit of 14 cents a share on revenue of $550 million vs. analyst estimates for earnings of 13 cents a share on revenue of $536.6 million.


Dow component Hewlett-Packard ( HPQ) was the biggest name to report after the bell and its shares were tacking on 3% to $44.57 in recent trades on volume of 3.4 million.

Both the company's fiscal fourth-quarter results and outlook were ahead of analyst views. For the October-ended quarter, HP posted an adjusted profit of $1.33 a share with revenue rising 8% year-over-year to $33.3 billion. The performance compares to Wall Street's consensus estimate for earnings of $1.27 a share on revenue of $32.8 billion.

"HP proved once again that it is able to execute given its market strengths and technology leadership," said Léo Apotheker, HP president and chief executive officer, in a statement. "I have seen firsthand that we have talented people who are focused on delivering value for our customers. Our market opportunity is vast, and I am confident that we will extend our leadership into the future."

This quarterly conference call is Apotheker's first since taking over the helm from Mark Hurd and TheStreet live-blogged the proceedings.

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