Updated from 4:35 p.m. EDT
hit its third-quarter targets, increasing revenue by 55% and turning from a quarterly loss last year to a larger-than-expected profit.
The company also told investors Thursday that the fourth quarter will likely be stronger than expected.
In recent after-hours trading, shares were up 34 cents, or 6.3%, to $5.75.
The San Jose, Calif., maker of storage switches and other gear earned a profit of $24.5 million, or 9 cents a share, compared to a loss of $7.2 million, or 3 cents a share, in the same quarter last year. Revenue jumped to a record $189.9 million from $122.3 million a year ago.
Excluding stock-based compensation expenses and other items, Brocade earned a profit of $31 million, or 11 cents a share -- 2 cents better than estimates compiled by Thomson First Call before Brocade preannounced the quarter earlier this month.
Sales were also a bit better than Wall Street's forecast of $185.4 million.
Looking to the fourth quarter, Brocade said non-GAAP operating margins will range from 16% to 17%, significantly higher than the company forecast three months ago. Revenue will likely range from $200 million to $205 million.
EPS will range from 10 cents to 12 cents, excluding the cost of options and other items, Brocade said.
Analysts had forecast a profit of 8 cents on revenue of $190.6 million.
Much of the news out of Brocade recently has not been about financial results. In July,
federal prosecutors charged former Brocade CEO Gregory Reyes and Stephanie Jensen, Brocade's former vice president of human resources, with backdating stock options.
And last week, Brocade
announced that it will buy smaller rival
in an all-stock deal valued at $713 million.
McData also makes switches used in storage networking.