Shares of Brocade (BRCD) are down 1% for the year to date but the networking equipment-maker's CEO, Lloyd Carney, said the second half of 2016 is shaping up to be a smoother ride higher.
"We are always stronger in the second half," said Carney. "If you look at us historically, our third quarter tends to build into the fourth quarter, which is our strongest quarter, followed by our first quarter, which starts off in November."
A soft storage market was a problem for Brocade in the first half of 2016. However, Carney said he is seeing an uptick in large storage switches of late. "We are connected to every major storage vendor in the world, so we see what is going on," said Carney. "We feel very good about the back end of the year."
Carney added that telecoms are heading toward software-based networking, and that is a positive for Brocade because of its strength in that product area.
Last month the communications and networking company announced that it closed its $1.2 billion acquisition of Ruckus Wireless. The deal was intended to expand Brocade's portfolio of market-leading storage networking and IP networking solutions with the addition of high performance wireless hardware and software products.
"The integration is going great," said Carney.
This week Brocade and Harris (HRS) announced a strategic partnership to deliver cyber security solutions for advanced protection of an organization's critical assets. Brocade and Harris intend to jointly develop new solutions integrating Harris cybersecurity technology and Brocade's software-defined networking (SDN) capabilities.