Brocade Beats Street, Names CFO

The company posts a profit drop, but sales are strong in the second quarter.
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Brocade Communications

(BRCD)

blew past Wall Street's second-quarter expectations, despite a sharp drop in net income.

The storage gearmaker earned a GAAP profit of $13.5 million, or 5 cents a share, compared with $21.4 million, or 8 cents a share, in the same quarter a year ago.

Total revenue increased by 26% to $182.7 million, the company announced after Thursday's closing bell.

Excluding charges for stock-based compensation, the costs of the company's ongoing

Securities and Exchange Commission

investigation and acquisition-related items, Brocade earned $26.4 million, or 10 cents a share.

On the same basis, analysts polled by Thomson First Call were looking for a 5-cent profit on sales of $160.37 million.

Investors were pleased by the report, and in recent after-hours trading, shares were up 32 cents, or 5.6%, to $6.09.

Separately, the company announced that Richard Deranleau has been named chief financial officer.

Deranleau, who has served as interim CFO since December 2005, brings over 25 years of experience in corporate finance to the role, the company said.