Brocade Doubles Profit

Revenue increases 44% in the data-storage company's fourth quarter.
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Strong sales helped

Brocade Communications Systems

(BRCD)

power past Wall Street's forecast for its top and bottom lines late Tuesday.

Revenue for the fourth quarter totaled $208.8 million, growing 44% from $145.5 million in the same period a year ago.

The storage company posted a profit of $20 million, or 7 cents a share, compared with $1.1 million, or flat on a per-share basis from the same quarter in 2005.

Excluding some items, Brocade reported a net income of $39.4 million, or 14 cents a share, essentially doubling from $19 million, or 7 cents a share, a year ago.

Analysts polled by Thomson First Call had expected the company to earn 12 cents a share on sales of $203.5 million.

Brocade CEO Michael Klayko in a statement credited the company's storage area network (SAN) business for driving returns and helping the company to invest for future growth.

Gross margin for the quarter was 62.1% compared with 55.3% in the same period last year.

Customers

EMC

(EMC)

,

Hewlett-Packard

(HPQ) - Get Report

and

IBM

(IBM) - Get Report

each accounted for more than 10% of sales, and together totaled 74% of the company's revenue.

The company did not immediately provide an outlook for the first quarter.

Shares of the company rose 1.3%, or 11 cents, to $8.60 in extended trading. During the regular session, Brocade rose nearly 5%, adding 40 cents to $8.49, after an analyst raised his revenue estimates for the fourth quarter.